Indonesia’s parliament has voted to pass President Joko Widodo’s emergency decree aimed at regulating investment and jobs in the country, replacing a similar law from 2020 that was ruled partially unconstitutional. The new law revises more than 70 other laws and has been welcomed by foreign investors for simplifying business regulations. However, it has faced criticism from labour and green groups, who argue that it is too pro-business and does not adequately protect workers’ rights or the environment.
The emergency decree is seen as a key step in attracting foreign investment and boosting economic growth in Southeast Asia’s largest economy, which has been hit hard by the COVID-19 pandemic. The law includes provisions aimed at reducing red tape and improving the ease of doing business in the country. It also introduces new rules on job creation, including tax breaks for companies that create new positions and incentives for firms that invest in training and skills development for their employees.
However, critics argue that the law prioritises the interests of businesses over those of workers and the environment. Labour groups have raised concerns about provisions that make it easier for employers to hire and fire workers, as well as the lack of protection for workers in the informal sector. Environmental activists have also criticised the law, arguing that it weakens protections for the environment and natural resources.
Despite these concerns, the law has received support from many in the business community, who see it as a positive step towards creating a more attractive investment climate in Indonesia. The country has long struggled to attract foreign investment, in part due to complex regulations and a reputation for corruption. The new law is expected to make it easier for businesses to operate in the country and to stimulate job creation and economic growth.
In conclusion, Indonesia’s emergency decree on investment and jobs represents a significant milestone in the country’s efforts to attract foreign investment and promote economic growth. While the law has faced criticism from labour and green groups, it has been praised by many in the business community for its efforts to streamline regulations and reduce red tape. As Indonesia looks to rebuild its economy in the wake of the COVID-19 pandemic, the success of this new law will be closely watched by investors and policymakers alike.