Application of the Omnibus Law Method to the Legislative System in Indonesia (An Analysis of Legislation regarding the Taxation Sector)

    Wiwin Sri Rahyani ,Mella Ismelina Farma Rahayu ,Ahmad Redi

    Abstract

    The adoption by Indonesia of the rule of law has caused all aspects of social, state and administrative activities to be based on the law, as provided for in various laws and regulations. One of the efforts made to organize legislation is through law harmonization. Legislative issues in the country cannot only be resolved through this harmonization, but also require legal breakthroughs, one of which is by using the omnibus law method. One area of legislation that needs to be re-organized concerns tax legislation, as in order to increase economic growth, support is needed in the form of policies that may increase investment funding, provide fair treatment to the business community from within and outside the country and a legal basis for the government to provide more flexible tax facilities achieve the object above. The problems analyzed concern the application of the omnibus law method to the legislative system in the country, especially tax legislation after the promulgation of Act Number 7 of 2021 concerning the Harmonization of Tax Regulations and after Order of the Constitutional Court Number 91/PUU-XVIII/2020 concerning Formal Examination of Act Number 11 of 2020 concerning Job Creation against the Constitution. The research has employed the normative legal research method and the statutory approach and the analytical approach. The omnibus law method is urgently needed to fill the substantive elements of tax legislation by compiling them into 1 (one) act, regulating the general provisions of taxation, income tax, value added tax on goods and services and sales tax on luxury goods, excise, duty, voluntary disclosure programs, and imposition of a carbon tax. Order of the Constitutional Court Number 91/PUU-XVIII/2020 serves as the basis for lawmakers to improve the legislative process, especially through the usage of the omnibus law method. For this purpose, the Act concerning the Making of Ancillary Legislative Regulations.

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