First and foremost, the omnibus law streamlines Indonesia`s complex regulatory environment. The law eased restrictions in 11 critical areas, including labor law, capital investment, business licenses, corporate income tax, and land acquisition. These measures would, of course, make this country a much more attractive destination for foreign companies and investors. Its main objective is to boost domestic and foreign investment to transform Indonesia`s economic sphere. Thus, the omnibus law has created many more opportunities for multinational companies operating in Southeast Asia`s largest economy or considering investing in Southeast Asia. Omnibus legislation is commonly used by the United States Congress to consolidate the budgets of all departments into a single year into an omnibus spending bill. For example, the 1993 Omnibus Budget Reconciliation Act sought to reduce the federal deficit by about $496 billion over five years through a restructuring of the tax code. [4] In Canada, a famous bill was passed on the Criminal Law Amendment Act, 1968-69, a 126-page amendment to the 120-section penal code, passed under the leadership of Pierre Elliot Trudeau, then Attorney General in Lester Pearson`s government. This law changed the law of the land in areas as diverse as homosexuality, prostitution, abortion, gambling, gun control and drunk driving. In 2012, Alabama revised its 2011 bus legislation, HB56. HB658, which was released on the 18th.
May deals with a number of issues, including law enforcement, driver`s license/ID cards, business/public records, employment/electronic verification, and port/transportation/rental contracts. Georgia`s Omnibus Immigration Act (HB87) was signed into law on May 13, 2011. The bill contains provisions on employment, enforcement and public benefits. With the introduction of the omnibus law, the Indonesian government has opened up most of the economic sector to 100% foreign investment. The proposed main regulation states: “All sectors of activity are open to direct investment, except those that are designated as closed to investment or that represent activities reserved for the central government. This means that while most businesses are fully open, central government operations are still closed to foreign investment. Prior to the adoption of the omnibus law, Indonesia used the negative investment list. This list included a number of industries that were only partially open to foreign investment (i.e. these lines have limits to foreign ownership). To give two examples: companies operating in large horticultural farms are open to foreign ownership up to 30%, and companies engaged in broadcasting are open to foreign ownership up to 20%. Now, in 2021, the previous regulation with the negative investment list has been repealed and replaced by a “positive investment list” in accordance with Presidential Decree (PR) 10/2021.
Under PR10/2021, virtually all sectors of activity are 100% open to foreign investment. However, according to the ASEAN report, with the exception of six business areas with the omnibus law, the process of obtaining your business license is now much easier. Similarly, an omnibus law was passed in New Zealand in November 2016, enacting the legislation required for New Zealand to join the Trans-Pacific Partnership. [10] [11] Although the omnibus law provoked mixed reactions when it was drafted in February 2020, the introduction of the law has long been part of President Widodo`s vision, as he has mentioned several times: Indonesia`s current tax rate of 22% is high compared to other ICCA countries. The Omnibus Act provides for a reduction in the income tax rate resulting from interest payments. In the Republic of Ireland, the Second Amendment to the Constitution was a constitutional law passed in 1941 that made many independent changes to the country`s constitution. This letter contains summaries of enacted legislation and court challenges. Links to omnibus legislation and complaints can be found at the end of this bulletin.
In 2012, five states passed omnibus implementing legislation that included provisions such as: requiring law enforcement to verify immigration status during legal residency, making it a state felony for not having a federal registration document, and creating penalties for transporting or harboring illegal immigrants: Kansas (H2576), Mississippi (H488 and S2090), Missouri (S590), Rhode Island (H7313) and West Virginia (S64).