DOI: https://doi.org/10.14710/lr.v22i1.68608

The Complexity and Consequences of The Policy Implementation Omnibus Law Creation on Welfare of Contract Workers In Indonesia

M Syahrul Borman orcid scopus  -  Faculty of Law, Universitas Dr. Soetomo, Indonesia
*Siti Marwiyah orcid scopus  -  Faculty of Law, Universitas Dr. Soetomo, Indonesia
Vieta Imelda Cornelis orcid scopus  -  Faculty of Law, Universitas Dr. Soetomo, Indonesia
Muhammad Ahnaf Maulana Vansya  -  Faculty of Law, Universitas Dr. Soetomo, Indonesia
Muhammad Ramdan orcid  -  Faculty of Law, Universitas Diponegoro, Indonesia
Renda Aranggraeni orcid scopus  -  Faculty of Law, Universitas Dr. Soetomo, Indonesia
Maheran Makhtar scopus  -  Faculty of Law and International Relations, Universiti Sultan Zainal Abidin, Malaysia
Open Access Copyright 2026 LAW REFORM under http://creativecommons.org/licenses/by-sa/4.0.

Citation Format:
Abstract
The Omnibus Law on Job Creation is a significant piece of regulatory reform introduced by the Indonesian government to boost investment competitiveness and stimulate economic growth by streamlining cross-sector regulations, including labour law. However, the reform has sparked debate about whether workers, particularly contract workers who are vulnerable in the labour market, are adequately protected by the law. This research aims to analyse the complexities surrounding the implementation of the Omnibus Law on Job Creation and its implications for the welfare and legal protection of contract workers in Indonesia. This research employs a qualitative legal approach, using document analysis and network content analysis of industrial relations dispute decisions issued by the Supreme Court of the Republic of Indonesia between 2020 and 2024. NVivo 12 Plus was used to support systematic coding and visualisation. The results indicate that, while regulatory changes under the Omnibus Law increase labour market flexibility, they also create legal uncertainty for contract workers, affecting income stability, employment security and access to labour rights. It is concluded that the policy creates an imbalance between investment-oriented objectives and the constitutional mandate to protect workers' welfare. Therefore, a regulatory review and a more inclusive policy formulation process are necessary to ensure fair and sustainable labour protection.
Fulltext View|Download Email colleagues
Keywords: Contracts; Labor; Omnibus-Law; Protection; Welfare

Article Metrics:

Article Info
Section: Research Article
Language : EN
Most cited articles
GLOBALISASI LESBIAN, GAY, BISEKSUAL, DAN TRANSGENDER (LGBT): PERSPEKTIF HAM DAN AGAMA DALAM LINGKUP HUKUM DI INDONESIA COUNTER TERRORISM BAGI PELAKU TINDAK PIDANA TERORISME SEBAGAI UPAYA PENANGGULANGAN KEJAHATAN TERORISME DI INDONESIA URGENSI REKONSTRUKSI HUKUM E-COMMERCE DI INDONESIA PENGATURAN KAWASAN KESELAMATAN OPERASI PENERBANGAN : STUDI TENTANG PELAKSANAAN KEWENANGAN PEMERINTAH DAERAH DALAM MENGENDALIKAN PEMBANGUNAN DAN BENDA TUMBUH DI KAWASAN KESELAMATAN OPERASI PENERBANGAN BANDAR UDARA AHMAD YANI SEMARANG PENDIDIKAN HUKUM SEBAGAI PENDIDIKAN MANUSIA More cited articles
  1. Aprilia, N. P., & Wibawa, K. C. S. (2021). Prospectus of Salary/Wage Subsidy Policy for Worker Welfare Improvement During Covid-19 Pandemic. Jurnal IUS Kajian Hukum Dan Keadilan, 9(3). https://doi.org/10.29303/ius.v9i3.899
  2. Arvante, J. Z. Y., Sulistyawan, A. Y., & Riyanto, Y. P. (2025). The Role of Legal Theory in the Era of Digital Globalization: A Perspective of Law Theory as a Tool of Social Engineering. Jurnal Pembangunan Hukum Indonesia,7(2),307-324. https://doi.org/10.14710/jphi.v7i2.128-145
  3. Aspromourgos, T. (2023). Smith at 300 : On Regulation of The Labour Contract. Journal of the History of Economic Thought, 45(2), 206–207. https://doi.org/10.1017/S1053837 222000463
  4. Aswindo, M., Ras, A. R., Simon, A. J., & Hanita, M. (2021). Omnibus Law on job creation and resilience prospects of Indonesian migrant workers. Journal of Social and Political Sciences, 4(4), 101-110. DOI: 10.31014/aior.1991.04.04.322
  5. Baker, J. (2023). Reformasi Reversal: Structural Drivers of Democratic Decline In Jokowi’s Middle-Income Indonesia. Bulletin of Indonesian Economic Studies, 59(3), 341–364. https://doi.org/10.1080/00074918. 2023.2286020
  6. Bargelli, E. (2026). The Cause of the Contract in French and Italian Law : ‘ I will Survive .’ Cambridge Yearbook of European Legal Studies,2024,121–137. https://doi.org/10.1017/cel.2025.3
  7. Borman, M. S., Marwiyah, S., Cornelis, V. I., Lazuardi, I., & Khaewanam, P. (2024). Model For Resolving Election Violations Through Indonesian Election Body and Constitutional Court. Legality: Jurnal Ilmiah Hukum,32(2),238–262. https://doi.org/10.22219/ljih.v32i2.33711
  8. Burgess, J. (2022). A Case for Public Sector Job Creation Schemes. Economic and Labour Relations Review,3(2),115–130. https://doi.org/10.1177/103530469200300206
  9. Chan, J. (2023). Class, labour conflict, and workers’ organisation. Economic and Labour Relations Review, 34(3), 383–394. https://doi.org/10.1017/elr.2023.41
  10. Clarke, J., & Gallot, F. (2024). Gender and the Displaced Worker in Contemporary France: Women, Mobility, and Economic Restructuring Beyond the Industrial Deartlands. International Labor and Working-Class History,105,26–42. https://doi.org/10.1017/S0147547923000327
  11. Congost, R., Ros, R., & Saguer, E. (2023). More industrious and less austere than expected: evidence from inventories of agricultural workers in north-eastern Catalonia (1725-1807). Rural History,34(2),278–299. https://doi.org/10.1017/S095679332300002X
  12. Dean, A. (2024). Worker takeovers: A comparative analysis of employee buyouts, other worker-managed firms, and conventional firms in Uruguay. Journal of Institutional Economics,20,1–19. https://doi.org/10.1017/S1744137424000080
  13. Devine, J. A. (2023). Contesting global heritage in the Chicle workers’ museum. Latin American Research Review, 51(3), 101–122. https://doi.org/10.1353/lar.2016.0036
  14. Dughera, S., & Quatraro, F. (2022). Innovation, on-the-job learning, and labor contracts: an organizational equilibria approach. Journal of Institutional Economics, 18(4), 605–620. https://doi.org/10.1017/S1744137421000497
  15. Dukes, R. (2022). Authoritarian liberalism : A labour law perspective. European Law Open,150–157. https://doi.org/10.1017/elo.2022.5
  16. Elizalde, F. De. (2026). The Silent Transformation of Spanish Contract Law. Cambridge Yearbook of European Legal Studies, 2024,138–154. https://doi.org/10.1017/cel.2025.10019
  17. Eneh, N. E., Bakare, S. S., Adeniyi, A. O., & Akpuokwe, C. U. (2024). Modern labor law: a review of current trends in employee rights and organizational duties. International Journal of Management & Entrepreneurship Research, 6(3), 540–553. https://doi.org/10.51594/ijmer.v6i3.843
  18. Estiwardani, F. (2025). The Impact of Constitutional Court Decision No . 168 / PUU-XXI / 2023 on The Employment Cluster in The Job Creation Law : Implications for The Use of Foreign Workers in National Strategic Projects. Jurnal Daulat Hukum, 8(2), 239–250. https://dx.doi.org/10.30659/jdh.v8i2.44863
  19. Gough, I. (2022). Two Scenarios for Sustainable Welfare : A Framework for an Eco-Social Contract. Social Policy & Society, 21(3), 460–472. https://doi.org/10.1017/S14747 46421000701
  20. Guan, T., Brintzenhofeszoc, K., Middleton, A., Otis-Green, S., Schapmire, T., Rayton, M., Nelson, K., Grignon, M. L., & Zebrack, B. (2024). Oncology social workers’ involvement in palliative care: Secondary data analysis from nationwide oncology social workers survey. Palliative and Supportive Care, 22(5). https://doi.org/ 10.1017/S1478951524000622
  21. Hadi, S. P., Hamdani, R. S., & Roziqin, A. (2023). A sustainability review on the Indonesian job creation law. Heliyon, 9(2). DOI: 10.1016/j.heliyon.2023.e13431
  22. Handias, A. T., & Sa'adah, N. (2021). Critical Examination on the Mechanism of Application Submission for Legal Assistance Budgeting in Industrial Relation Disputes. Diponegoro Law Review, 6(2), 265-278. https://ejournal.undip.ac.id/index.php/dlr/article/view/31088
  23. Hertogh, M. (2023). Relational legal consciousness in the punitive welfare state: How Dutch welfare officials shape clients’ perceptions of law. Law and Society Review,57(3),293–316. https://doi.org/10.1111/lasr.12663
  24. Hidayati, L. N., Dewi, A. L., Oktaviana, M. M., Sari, L., Salsabila, S. R., & Hadji, K. (2025). Perlindungan Hukum Pekerja Kontrak Dalam Perspektif Undang-Undang Nomor 13 Tahun 2003 Dan Undang-Undang Omnibus Law. Al-Zayn: Jurnal Ilmu Sosial & Hukum, 3(3), 1934-1945. https://doi.org/10.61104/alz.v3i3.1484
  25. Hunter, B. (2023). Whose business is it to employ Indigenous workers? Economic and Labour Relations Review, 26(4), 631–651. https://doi.org/10.1177/1035304615598526
  26. Sarjana, I. M., Sudiarawan, K. A., Medd, L. A., Raksita, I. P. B. W., & Hermanto, B. (2023). Omnibuslaw Employment Cluster: Is Ita Form Of Labor Exploitation In The Indonesian Context?. UUM Journal of Legal Studies, 14(1), 57-88. https://doi.org/10.32890/uumjls2023.14.1.3
  27. Iossa, A. (2022). “This is not a posted worker” - short-term cross-border mobility of logistics workers and spatio-temporal dimensions of exploitation in the EU: evidence from the case law of the Court of Justice. European Law Open,1(3),669–678. https://doi.org/10. 1017/elo.2022.40
  28. Jackson, H. (2024). Contract labour in mining and occupational health and safety : A critical review. Economic and Labour Relations Review,35(3),576–613. https://doi.org/10.1017/elr.2024.32
  29. Jaelani, A. K., Luthviati, R. D., & Octavia, R. (2023). Indonesia’s Omnibus Law on Job Creation: Legal Strengthening Digitalization of Micro, Small and Medium Enterprises. Relações Internacionais No Mundo Atual, 3(41),209–227. DOI: 10.21902/Revrima.v3i41.5833
  30. Kasim, U., Hasibuan, F. Y., Reksowibowo, B., & Suganda, A. (2020). Reformulation of Work Relationships on the Outsourcing System in Indonesian Order to Protecting the Rights of Workers. Journal of Law, Policy and Globalization, 103, 66-83. https://www.iiste.org/Journals/index.php/JLPG/article/view/54845
  31. Laksana, W., & Fareha, N. (2025). The Challenges of Using the Omnibus Law Method in Indonesia ’ s Legal System. Volksgeist: Jurnal Ilmu Hukum Dan Konstitusi,8(40),459–477. https://doi.org/10.24090/volksgeist.v8i2.13382
  32. Lubis, I. F., & Hoesin, S. H. (2023). Analysis juridical implementation of occupational health and safety and social security/BPJS employment for workers in notary offices. The International Journal of Politics and Sociology Research, 11(1), 16–24. https://ijobsor.pelnus.ac.id/index.php/ijopsor/ article/view/102
  33. Maceachen, E., Hopwood, P., & Crouch, M. K. (2023). Retirement pension poverty among injured workers with long-term workers’ compensation claims. Economic and Labour Relations Review, 34(4), 753–771. https://doi.org/10.1017/elr.2023.43
  34. Mahy, P. (2022). Indonesia’s Omnibus Law on Job Creation: Legal Hierarchy and Responses to Judicial Review in the Labour Cluster of Amendments. Asian Journal of Comparative Law, 17(1), 51–75. https://doi.org/10.1017/asjcl.2022.7
  35. Mak, V. (2024). Redefining equality in European contract law : protecting consumer interests in a post-consumer society. European Law Open, July 2021, 561–586. https://doi.org/10.1017/elo.2024.42
  36. Mangold, S. (2023). Data privacy and digital work platforms in global perspective. Italian Labour Law E-Journal, 16(1), 109–125. https://doi.org/10.6092/issn.1561-8048/16472
  37. Mashari, M., & Suroto, S. (2022). Efektivitas Eksekusi Terhadap Pengusaha Yang Tidak Membayar Pesangon Pekerja Di Perusahaan. Jurnal Pembangunan Hukum Indonesia,4(3),459-470. https://doi.org/10.14710/jphi.v4i3.459-470
  38. Massoud, M. F. (2023). Taking workers’ rights to unexpected places. Law and Society Review,57(3),385–389. https://doi.org/10.1111/lasr.12676
  39. Matompo, O. S. (2022). Legal Protection of Indonesian Migrant Workers based on The Job Creation Law. Jurnal Justiciabelen, 5(2),43. https://doi.org/10.30587/justiciabelen.v5i2.5021
  40. Maugeri, M. (2022). Smart Contracts, Consumer Protection, and Competing European Narratives of Private Law. German Law Journal,2,900–909. https://doi.org/10.1017/glj.2022.58
  41. McDougall, P. (2021). The place of labor rights in the European Union’s environmental policies. German Law Journal, 22(1), 1–30. https://doi.org/10.1017/glj.2020.103
  42. Muchlinski, P., & Arnold, D. G. (2024). Sweatshops and Labour Law : The Ethical and Legal Implications of Ignoring Labour Law in Developing Countries. Business and Human Rights Journal, 9(2), 201–220. https://doi.org/10.1017/bhj.2024.9
  43. Muin, F., & Tahir, P. (2023). Legal Policy of Halal Products for the Development of Small and Micro Enterprises after the Enactment of Government Regulation in Lieu of Law No. 2 of 2022 on the Job Creation. Al-Risalah: Forum Kajian Hukum Dan Sosial Kemasyarakatan,23(1),1–12. https://doi.org/10.30631/alrisalah.v23i1.1323
  44. Narindra, J. S., & Ispriyarso, B. (2022). Analisis Penghapusan Syarat Tidak Bertentangan dengan Peraturan Perundang-Undangan Dalam Penggunaan Diskresi Pada Omnibus Law Cipta Kerja. Jurnal Pembangunan Hukum Indonesia, 4(3), 418-432. https://doi.org/10.14710/jphi.v4i3.418-432
  45. Palmtag, T. (2024). The unequal effect of economic development on perceived labor market risks and welfare. Political Science Research and Methods, 12(3), 573–590. https://doi.org/10.1017/psrm.2023.47
  46. Perdana, S. (2021). Comparison of government efforts in improving the welfare of Indonesian workers based on Law Number 13 of 2003 concerning manpower and Draft Law Number 11 of 2020 concerning job creation. International Journal Reglement & Society,2(1),35–44. https://doi.org/10.55357/ijrs.v2i1.85
  47. Purnomo, E. P., & Az Zahra, A., Malawani, A. D., & Anand, P. (2021). The kalimantan forest fires: An actor analysis based on supreme court documents in Indonesia. Sustainability (Switzerland), 13(4), 1–12. https://doi.org/10.3390/su13042342
  48. Putri, F. N. H., Solechan, S., & Suhartoyo, S. (2024). Perlindungan Hukum Pekerja Terhadap Keselamatan dan Kesehatan Kerja dI PT. Perusahaan Listrik Negara (PLN) Unit Induk Distribusi (UID) Jateng dan DIY Semarang. Diponegoro Law Journal,13(4). https://doi.org/10.14710/dlj.2024.45297
  49. Rahnema, S. (2023). The (In)conceivability of Real Workers’ Control under Capitalism. International Labor and Working-Class History,103,328–344. https://doi.org/10. 1017/S0147547922000308
  50. Izzati, N. R. (2022). Deregulation in job creation law: The future of Indonesian labor law. Padjadjaran Jurnal Ilmu Hukum (Journal of Law), 9(2), 191-209. https://doi.org/10.22304/pjih.v9n2.a3
  51. Roychowdhury, A. (2021). Application of job security laws, workers’ bargaining power and employment outcomes in India. Economic and Labour Relations Review, 30(1), 120–141. https://doi.org/DOI: 10.1177/1035304619831245
  52. Wibowo, R. F., & Herawati, R. (2021). Perlindungan Bagi Pekerja Atas Tindakan Pemutusan Hubungan Kerja (PHK) Secara Sepihak. Jurnal Pembangunan Hukum Indonesia,3(1),109-120. https://doi.org/10.14710/jphi.v3i1.109-120
  53. de Sadeleer, N. (2025). The European Green Deal : greenwashing compounded by deregulation (Omnibus law ) or a genuine paradigm shift ? European Journal of Risk Regulation,16(Sp.4),1343–1374. https://doi.org/10.1017/err.2025.20
  54. Sage, N. (2025). Is Contract Law Liberal ? on Autonomy and Exchange. Cambridge Law Journal, 1–32. https://doi.org/10.1017/ S0008197325100974
  55. Sala, A. (2023). Exploring Litigation, Court Rulings, and Legal Mobilization in Response to Death and Suicide from Overwork: Implications for Labor Law Reform Policy Making in Japan. Law and Social Inquiry, 49(3), 1877–1910. https://doi.org/10.1017/lsi.2023.78
  56. Shadiqin, M. T., Azhar, M., Adiyanta, F.C. S., & Rohani, S. (2022). Vaksinasi Covid-19: Hak Individu Atau Kewajiban Publik Dalam Civil Society?. Masalah-Masalah Hukum, 51(2), 106-116. https://doi.org/10.14710/mmh. 51.2.2022.106-116
  57. Shintiya, S., Dwiprigitaningtias, I., & Ikrardini, Z. (2025). Perlindungan Hukum Terhadap Pekerja Perjanjian Kerja Waktu Tertentu Yang Dilakukan Pemutusan Hubungan Kerja. Rechtswetenschap: Jurnal Mahasiswa Hukum, 2(1). https://doi.org/10.36859/ rechtswetenschap.v2i1.3151
  58. Sidabutar, R. T. L., Pasaribu, A. Z., Immanuella, C., Tambunan, B. K. M., Tampubolon, M. T., Pandiangan, M. D., Matondang, V. F. S., & Sihombing, R. (2026). Menimbang Keadilan Di Balik Kontrak: Kajian Sistematis Atas Perlindungan Hukum Pekerja Kontrak Dan Outsourcing Dalam Pusaran Fleksibilitas Kerja Di Indonesia. Ikra-Ith Humaniora: Jurnal Sosial dan Humaniora,10(2),369-387. https://journals.upiyai.ac.id/index.php/ikraith-humaniora/article/view/6430
  59. da Silva, J. P., Pennathur, P., Salehi, H., Chasco, E., Baloh, J., Dukes, K., Ward, M., Reisinger, H., & Abbott, L. H. (2020). Self-Contamination While Doffing Personal Protective Equipment. Infection Control & Hospital Epidemiology, 41(S1). https://doi.org/10.1017/ice.2020.1020
  60. Sonhaji, S. (2019). Organisasi Serikat Pekerja Terhadap Kesejahteraan Pekerja atau Buruh di PT. Apac Inti Corpora. Administrative Law and Governance Journal, 2(4), 629-630. https://doi.org/10.14710/alj.v2i4.629-630
  61. Steininger, S. (2023). Where is the l ( ove )? Excavating law and labour in The Redress of Law. European Law Open, 151–161. https://doi.org/10.1017/elo.2023.17
  62. Sugisawa, H. (2024). Psychosocial predictors of young male workers’ discrimination against older workers in Japan: Comparison of four models. Ageing and Society, 44(3), 519–544. https://doi.org/10.1017/S0144686X22000289
  63. Suhartoyo, S. (2019). Perlindungan Hukum Bagi Buruh Dalam Sistem Hukum Ketenagakerjaan Nasional. Administrative Law and Governance Journal, 2(2), 326-336. https://doi.org/10.14710/alj.v2i2.326-336
  64. Tobing, C. N. M., Ginting, S. Br., & Melayu, H. A. (2023). Analysis Of Labor Rights After The Job Creation Law In Perspective Of Human Rights. Jurnal Hukum Dan Peradilan, 12(1),97–128. https://doi.org/10.25216/jhp.12.1.2023.97-128
  65. Yasih, D. W. P., & Hadiz, V. R. (2023). Precarity and Islamism in Indonesia: the contradictions of neoliberalism. Critical Asian Studies, 55(1), 83–104. https://doi.org/10.1080/14672715. 2022.2145980
  66. Pujiastuti, E., & Purwanti, A. (2018). Labor supervision policy in Indonesian legal system based on Pancasila. In IOP Conference Series: Earth and Environmental Science, 175(1). IOP Publishing. https://doi: 10.1088/1755-1315/175/1/012192
  67. Marditia, P. P. R., Fransiska, A., & Swantoro, A. A. (2021). Contercyclical and Omnisbus Law; Sustainable Welfare Regulation Model in Accelerating Economic Benefit in Tourism During the Unintended Consequences of Covid-19 Pandemic in Coastal Areas. In Proceedings of the 2nd International Conference on Business Law and Local Wisdom in Tourism (ICBLT 2021), pp.400–407. DOI: 10.2991/assehr.k.211203.089
  68. Sonhaji, K. C. S. W., & Juliani, H. (2021, October). Regulation of the Welfare of Outsourcing Workers in Banking Companies After the Enactment of the Job Creation Law in Indonesia. In ICOLEG 2021: Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia (p. 267). European Alliance for Innovation
  69. Saifullah, A. (2020). Labor Movement Responses to the Indonesian Omnibus Law. Agrarian, Food and Environmental Studies Research Paper. Hague: International Institute of Social Studies. https://thesis.eur.nl/ pub/55878/Saifullah-Aip_MA_2019_20_AFES.pdf
  70. Sasongko, U. A. (2025). Analisis Yuridis Perlindungan Hukum Hak Karyawan Perjanjian Kerja Waktu Tertentu (Pkwt) yang Mendapatkan Pemutusan Hubungan Kerja (PHK) Sepihak oleh Perusahaan (Studi Penelitian di Kota Semarang). Thesis : Universitas Islam Sultan Agung
  71. Choi Y. J., Fleckenstein, T., & Lee, S. C. (2021). Welfare Reform and Social Investment Policy. Bristol: Bristol University Press. https://doi.org/10.46692/9781447352754
  72. Shackelford, S. J. (2020). Governance at the Frontiers of International Relations: Definitions and Assumptions. In Governing New Frontiers in the Information Age: Toward Cyber Peace (pp. 3–86). Cambridge: Cambridge University Press. https://doi.org/10.1017/9781108604000.003
  73. Lembaga Bantuan Hukum Semarang. (2025). Siaran Pers : 10 Tahun Tanpa Kepastian Status Kerja, Buruh Pt Hong Fa International Di Phk Sepihak Akibat Menuntut Pengangkatan Pekerja Tetap. Retrieved from https://lbhsemarang.id/ siaran-pers-10-tahun-tanpa-kepastian-status-kerja-buruh-pt-hong-fa-international-di-phk-sepihak-akibat-menuntut-pengangkatan-pekerja-tetap/
  74. Mahkamah Agung. (2022). Putusan MAHKAMAH AGUNG Nomor 760 K/PID.SUS/2015. Retrieved from https://putusan3.mahkamah agung.go.id/search.html/?q=%22Kerugian%20keuangan%20negara%22
  75. Lumivero. (2024). NVivo 12 plus. [Computer Software]. https://lumivero.com/products/nvivo/

Last update:

No citation recorded.

Last update: 2026-04-27 03:23:56

No citation recorded.