BANGKOK — Indonesia’s Parliament is on the verge of approving a sweeping coronavirus stimulus package that opponents charge would undermine worker protections and permit widespread destruction of the country’s rainforests.
The legislation is backed by Indonesia’s president, Joko Widodo, and is seen as a way to attract investment and stimulate the creation of new jobs by reducing regulations on businesses. Its supporters hope to win passage before Parliament ends its session next Friday, even as opposition to the measure grows.
A confederation of labor unions is calling for a three-day national strike starting on Tuesday over provisions in the bill that would reduce job security, wages and mandatory days off. Union leaders say the strike has the backing of five million workers from dozens of industries.
Environmentalists oppose the measure because it would eliminate environmental reviews for many new projects and could lead to the destruction of primary rainforests that are essential in controlling carbon emissions and slowing climate change.
“The government is pursuing this policy as if they were completely deaf and blind to the effect on people by the emerging climate crisis,” said Phelim Kine, senior director for Asia at Mighty Earth, a global environmental campaign organization. “This is the Indonesian equivalent of ‘Drill, baby, drill.’”
Branded as an “omnibus bill,” the legislation is 1,028 pages long and would amend 79 laws and more than 1,200 articles. Supporters say it would improve Indonesia’s investment process by speeding regulatory approval and eliminating many permit requirements.
“This is the key to facilitate investment, especially in terms of simplifying permits,” said Luhut Pandjaitan, a top cabinet minister whose portfolio includes investment.
Indonesia, the world’s fourth-most-populous country, has been hit hard by the coronavirus, which has pummeled the economy and threatens to overwhelm the country’s beleaguered health care system. The government was slow to adopt coronavirus restrictions this year, then quick to lift them in the hope of reviving the economy. Now, the country is nearing 300,000 confirmed cases, and its death toll — nearly 11,000 — is the highest in East Asia. Jakarta, the capital, has imposed a partial shutdown for the second time.
Indonesia’s economy is expected to contract this year for the first time since the Asian economic crisis of the late 1990s. The finance minister, Sri Mulyani Indrawati, has forecast a decline in the gross domestic product of as much as 1.7 percent this year.
Officials fear that the economic downturn — along with the closing of schools as a pandemic measure — will reverse the country’s recent gains in reducing poverty, improving nutrition and raising education levels. Mr. Joko, in his second five-year term, has made economic development the focus of his presidency, often overshadowing other concerns.
The effort to push this bill through Parliament has given his critics a sense of déjà vu. A year ago, as Parliament neared the end of its session, lawmakers attempted to push through legislation that would have sharply reduced personal freedom, including limiting free speech and prohibiting sex outside marriage, effectively banning gay and lesbian relations.
Thousands took to the streets in protest around the country, and five died in clashes with the police. Mr. Joko withdrew the measure, although he refused to block another contentious bill that weakened the country’s anticorruption agency. This year, despite coronavirus restrictions making it harder to stage protests, labor organizers said they planned to demonstrate outside Parliament and invited students, environmentalists and other opponents of the measure to join.
The labor coalition supports the idea of job creation but argues that the omnibus bill would harm workers by reducing severance pay for those laid off, cutting the amount of mandatory leave, allowing longer work hours and permitting the hiring of contract and part-time workers to take the place of full-time employees.
“The fact is that the omnibus law reduces labor rights in the existing law,” said Said Iqbal, president of the Indonesian Trade Union Confederation and a leader of the planned strike.
Indonesia, which straddles the Equator and once had vast rainforests, has lost much of its forest cover to intentional burning that has been used for decades to clear land for palm oil plantations.
Forest fires occur every year and produce huge volumes of smoke that drift over neighboring Singapore and Malaysia and into the atmosphere, contributing to global warming. Environmentalists say that the government has made some progress in recent years in reducing the amount of burning, but that restrictions now in place would be reversed by the omnibus bill.