The Efficiency of the Omnibus Law and Its Impacts on Investment and Labor in Indonesia: An Economic Analysis of Law from a Transcendental Perspective

Authors

  • Laode Azizul Kadir Program Doktor Ilmu Hukum, Universitas Muhammadiyah Surakarta
    Indonesia
  • Tomás Mateo Ramon Universitat Internacional de Catalunya
    Spain

DOI:

https://doi.org/10.23917/jtl.v7i2.14340

Keywords:

Economic_Analysis_of_Law, Omnibus Law, Efisiensi Hukum, Keadilan_Sosial., Social Justice

Abstract

Penelitian ini menganalisis penerapan Economic Analysis of Law dalam menilai efisiensi regulasi Omnibus Law Cipta Kerja di Indonesia. Fokus kajian diarahkan pada bagaimana kebijakan deregulasi tersebut berpengaruh terhadap efisiensi ekonomi nasional, peningkatan investasi, serta keseimbangan antara pertumbuhan ekonomi dan keadilan sosial. Melalui pendekatan teori efisiensi hukum, Pareto Efficiency, Kaldor-Hicks Efficiency, dan Institutional Efficiency, penelitian ini menemukan bahwa Omnibus Law secara normatif berhasil menurunkan sebagian biaya transaksi dan mendorong iklim investasi, namun secara substantif masih menimbulkan ketimpangan distribusi manfaat, terutama terhadap pekerja dan masyarakat kecil. Dalam perspektif Hukum Profetik yang dikembangkan oleh Prof. Absori, efisiensi hukum yang sejati haruslah berkeadilan dan berkemaslahatan, yakni hukum yang tidak hanya efisien secara ekonomi, tetapi juga humanis, adil sosial, dan bermoral spiritual. Oleh karena itu, Omnibus Law perlu diarahkan pada model prophetic economic efficiency, efisiensi yang menyeimbangkan antara pasar, manusia, dan moralitas hukum.

This article analyzes the application of the Economic Analysis of Law in assessing the efficiency of the Job Creation Omnibus Law in Indonesia. The focus of this analysis is on how this deregulation policy influences the efficiency of the national economy, increases investment, and creates a balance between economic growth and social justice. Using the approach of the theories of legal efficiency, Pareto Efficiency, Kaldor-Hicks Efficiency, and Institutional Efficiency, this research found that the Omnibus Law has normatively succeeded in decreasing some transaction costs, while encouraging an investment climate. However, substantively, it still leads to a gap in benefit distribution, which especially affects workers and lower-level citizens. From the Prophetic Law perspective developed by Prof. Absori, true legal efficiency must be just and bring benefits (maslahah), i.e., a law that is not only economically efficient, but also humanist, socially just, and has spiritual morality. Therefore, the Omnibus Law needs to be directed to a prophetic economic efficiency model, i.e., efficiency that balances the market, human beings, and legal morality.

Downloads

Download data is not yet available.

References

Aaken, A. van. (2011). Opportunities for and Limits to an Economic Analysis of International Law. Transnational Corporations Review, 3(1), 27–46. https://doi.org/10.1080/19186444.2011.11658271

Absori. (2018). Pemikiran Hukum Profetik: Ragam Paradigma Menuju Hukum Berketuhanan (Prophetic Legal Thought: Various Paradigms Towards Godly Law). Yogyakarta: Ruas Media.

Absori. (2021). Research law normative-empirical in socio-legal perspective. Jurnal Yuridika, 36(1), 1–22.

Absori. (2022a). Hukum Profetik dan Rasionalitas Ekonomi dalam Pembentukan Regulasi Nasional. Jurnal Hukum Progresif, 18(2), 211–227.

Absori, A. (2022b). Hukum Profetik: Paradigma Transendental dalam Pembangunan Hukum Nasional. Surakarta: UMS Press.

Absori, Budiono, A., Bangsawan, M. I., Achmadi, Hangabei, S. M., & Haq, H. S. (2023). Eco-Partnership Management From A Legal Perspective: A Comparative In Surakarta, Philippines, And Malaysia. Quality - Access to Success, 24(194), 232–242. https://doi.org/10.47750/QAS/24.194.27

Adam, R. C. (2025). Between Attraction and Evasion: Legal Factors Shaping FDI in Indonesia and Neighboring Countries. Indonesia Law Review, 15(1). https://doi.org/10.15742/ilrev.v15n1

Aginta, H., & Someya, M. (2022). Regional economic structure and heterogeneous effects of monetary policy: evidence from Indonesian provinces. Journal of Economic Structures, 11(1). https://doi.org/10.1186/s40008-021-00260-6

Asriadi, A., & Sulaiman, A. (2025). The Role of the Job Creation Law in Increasing Investment and Labor Protection in Indonesia. Jurnal Indonesia Sosial Teknologi, 6(6). https://doi.org/10.59141/jist.v6i6.9071

Asshiddiqie, J. (2021). Hukum Tata Negara dan Demokrasi Ekonomi di Indonesia. Jakarta: Konstitusi Press.

Asshiddiqie, J., Mohamad, P., & Edi, A. (2020). Pancasila: Identitas Konstitusi Berbangsa dan Bernegara. Depok: Rajawali Press. Retrieved from https://www.rajagrafindo.co.id/produk/pancasila-identitas-konstitusi-berbangsa-dan-bernegara-jimly-asshiddiqie/

BKPM. (2022). Laporan Realisasi Investasi Tahun 2022. Jakarta: Kementerian Investasi/BKPM.

Chamdani, N. I. (2023). Impact Of Changes In Environmental Laws After The Implementation Of The Job Creation Law. Russian Law Journal. Russian Law Journal, 11(5). Retrieved from https://www.russianlawjournal.org/index.php/journal/article/view/2990

Cooter, R., & Ulen, T. (2016). Law and Economics (6th ed.). London: Pearson Education.

Dimyati, K., Nashir, H., Elviandri, E., Absori, A., Wardiono, K., & Budiono, A. (2021). Indonesia as a legal welfare state: A prophetic-transcendental basis. Heliyon, 7(8), 1–8. https://doi.org/10.1016/j.heliyon.2021.e07865

Faundez, J. (2016). Douglass North’s Theory of Institutions: Lessons for Law and Development. Hague Journal on the Rule of Law, 8(2). https://doi.org/10.1007/s40803-016-0028-8

Hadi, S. P., Hamdani, R. S., & Roziqin, A. (2023). A sustainability review on the Indonesian job creation law. Heliyon, 9(2), e13431. https://doi.org/10.1016/j.heliyon.2023.e13431

Hadjon, P. M. (2021). Hukum Administrasi dan Tantangan Deregulasi. Surabaya: Airlangga University Press.

Haryanto, A. T., & Resosudarmo, B. P. (2021). Comparing The Economy-wide Impact of Omnibus Law: An Input-Output Analysis. Jurnal Ilmiah Administrasi Publik (JIAP), 7(1). Retrieved from https://jiap.ub.ac.id/index.php/jiap/article/view/1125/1478

Iqbal, M., Mujib, M. M., & Lestari, Y. (2022). Does Omnibus Law Affect the Indonesian Investment Regulations towards Chinese Investors? Volksgeist Jurnal Ilmu Hukum Dan Konstitusi, 5(2). https://doi.org/10.24090/volksgeist.v5i2.6838

Jazuli, M. R., Idris, M. M., & Yaguma, P. (2022). The importance of institutional quality: Reviewing the relevance of Indonesia’s Omnibus Law on national competitiveness. Humanities and Social Sciences Communications, 334. https://doi.org/10.1057/s41599-022-01343-w

Kaldor, N., & Hicks, J. R. (1939). Welfare Propositions in Economics and Interpersonal Comparisons of Utility. Economic Journal, 49(195), 549–552.

Kaplow, L., & Shavell, S. (2002). Economic Analysis of Law. In Handbook of Public Economics (pp. 1661–1784). London: Elsevier.

Koeswahyono, I., Maharani, D. P., & Liemanto, A. (2022). Legal breakthrough of the Indonesian job creation law for ease, protection, and empowerment of MSMEs during the COVID-19 pandemic. Cogent Social Sciences, 8. https://doi.org/10.1080/23311886.2022.2084895

Kurniati, Y., & Abdillah, A. (2025). Comparative Labor Law Studies in Indonesia and Malaysia: Social–Economic Inequality and Governance of Migrant Workers. MDPI Laws, 14(6). https://doi.org/10.3390/laws14060079

Mahfud MD, M. (2021). Negara Hukum dan Tantangan Deregulasi. Makalah Seminar Nasional Hukum Dan Ekonomi. Yogyakarta: Seminar Nasional Hukum dan Ekonomi.

Mahy, P. (2025). Omnibus Law on Job Creation: a Chronology and Analysis. Oxfordshire: Routledge Handbook of Indonesian Law. https://doi.org/10.2139/ssrn.5229810

Montfaucon, A. F., Senelwa, V. K., & Doarest, A. (2023). Early Impacts of Indonesia’s Investment Reforms: A Preliminary Analysis. Washington, D.C. Retrieved from https://openknowledge.worldbank.org/bitstreams/0daed30b-1cb6-453f-825c-f4f1049e85e5/download

Nasution, B. J. (2008). Metode Penelitian Ilmu Hukum. Bandung: Mandar Maju.

Nugroho, A., Ronaboyd, I., Rusdiana, E., Prasetio, D. E., & Zulhuda, S. (2024). The Impact of Labor Law Reform on Indonesian Workers: A Comparative Study After the Job Creation Law. Lex Scientia Law Review, 8(1), 67–108. https://doi.org/10.15294/lslr.v8i1.14064

Pareto, V. (1906). Manual of Political Economy. Oxfordshire: Oxford University Press.

Posner, R. A. (2007). Economic Analysis of Law (7th ed.). New York: Aspen Publishers.

Posner, R. A., & Rosenfield, A. M. (1977). Impossibility and related doctrines in contract law: An economic analysis. The Journal of Legal Studies, 6(1), 83–118. https://doi.org/10.1086/467564

Rahardjo, S. (2009). Hukum dan Perubahan Sosial: Suatu Tinjauan Teoritis serta Pengalaman-Pengalaman di Indonesia (The Law and Social Change: A Theoretical Analysis and Experiences in Indonesia) (3rd ed.). Yogyakarta: Genta Publishing.

Rahardjo, Satjipto. (2008). Membedah Hukum Progresif (Uncovering Progressive Law). Jakarta: Kompas Media Nusantara.

Salim, P. W., & Rasji, J. M. H. (2023). Pengaruh Undang Undang Cipta Kerja Terhadap Pemenuhan Upah Minimum Pekerja. Jurnal Kewarganegaraan, 7(2).

Sanders, A., Khatarina, J., Assegaf, R., Toumbourou, T., Kurniasih, H., & Suwarso, R. (2024). The Omnibus Law on Job Creation and its potential implications for rural youth and future farming in Indonesia. Asia Pacific Viewpoint, 65(2).

Saputra, R. (2021). Membangun Hukum Profetik dalam Paradigma Keilmuan Hukum di Indonesia. Jurnal Penelitian Dan Kajian Ilmiah Universitas Muhammadiyah Sumatera, 15(2). https://doi.org/10.31869/mi.v15i2.2789

Setiawan, R. (2025). The Effect of Omnibus Law Technique on the Quality of Criminal Legislative Drafting in Indonesia. Siyasah Dusturiyah State Law Review, 1(3), 140–149. https://doi.org/10.65101/kyda6f73

Sihombing, B. F., & Hamid, F. F. (2023). Land Law Evolution and Investment Dynamics: Historical Perspective and Contemporary Development Nexus. Lex Publica, 10(1). https://doi.org/10.58829/lp.10.1.2023.66-83

Strengthening Industrial Relations in Indonesia Project. (2022). Retrieved from International Labor Organization website: https://www.ilo.org/projects-and-partnerships/projects/strengthening-industrial-relations-indonesia-project

Sujono, I., & Nugroho, M. (2023). Omnibus Law as Investment Law Reform in Indonesia Based on the Hierarchy of Legislation Principles. Journal of Progressive Law and Legal Studies, 1(2). https://doi.org/10.59653/jplls.v1i02.28

Suryabrata, S. (2012). Metode Penelitian Hukum. Jakarta: PT. Raja Grafindo Persada.

Wicaksono, A., Andari, R. N., Azni, U. S., Prayoga, R. A., Putri, I. H. S., Wahyono, E., … Susantyo, B. (2026). Actor collaboration in the implementation of business licensing integrated with the land use framework: Indonesian case study. Urban Governance, 6(1), 45–57. https://doi.org/10.1016/j.ugj.2025.10.003

Widijowati, D. (2023). Economic Analysis of Law: Strengthen

Downloads

Submitted

2025-12-05

Published

2026-01-31