Omnibus law charts new direction for Indonesia

ONCE again Indonesia finds itself at a critical crossroads. An economy that is fast contracting, millions of workers either laid off or facing unemployment, a health pandemic that shows no signs of abating and widespread street demonstrations.

The country has been here before. Having passed the landmark omnibus law on job creation, the government is now facing a public backlash driven by workers and students. Daily demonstrations over the past week have cast a huge shadow on the future economic and political direction that the country will take.

According to the Coordinating Ministry for the Economy, nearly seven million workers are currently unemployed and an additional 3.5 million workers have been laid off in the past seven months due to the pandemic. Add to that 3.5 million high school graduates who are expected to enter the workforce this year and next, with little hope of finding employment.