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10 Oct 2017

Omnibus Law

‘Don’t criticize what you don’t understand, son.

You never walked in that man’s shoes.’

          I saw the poster of Johny Cash and Elvis Presley, Rock N’ Roll Legends, the Man in Black and the King of Rock at the reception lounge at the Hampton Inn Hotel, Redmon, WA USA. in July 2017.

          It reminds me to our structured and segmented Laws. A law is prepared separately with another law. Every ministry sets their own regulations. That’s why one law can be overlapped with another, and frequently several laws rule a similar matter with different and contradictory regulation.

          If I walk in the government’s shoes what should I do?

          I don’t criticize, but give some thought that might be useful. I believe the government and parliament has considered to solve these issues, using the Omnibus Law even it is commonly used in the common law country like USA, UK, Singapore and Australia.

          In Omnibus Law concept, a new law can be issued for amending some articles that having contradictory regulations at some laws at the same time. So it will save time and cost to amend, comparing if every law should be amended one by one.

          For example, to enhance law on forestry, it can be amended not only Law No. 41/1999 regarding Forestry, but also Law No. 32/2009 regarding Environmental Protection and Management (PPLH) and Law No. 5/1960 regarding Basic Stipulation of Agrarian Regulation and also Income Tax Law No. 36 Year 2008 in related with Forestry & Agrarian Issue (if needed).

          So the question is ‘When Omnibus Law can be applied in Indonesia?’


Best Regards,
Agung Tjahjady SH, CLA, CPA, MM, BKP
Registered Tax Consultant, Advocate

0816 825 348

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