Indonesia passes jobs decree into law, easing investment uncertainty

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An official from Indonesia's Chamber of Commerce and Industry says the passage of the decree provides clarity and certainty that are crucial for existing and potential investors.

JAKARTA, Indonesia – Indonesia’s parliament on Tuesday, March 21, passed into law an emergency decree on jobs and investment, eliminating legal uncertainty hanging over measures2020 Jobs Creation law

Tuesday’s passage of the decree meant most of the changes brought about by the law would stay, with some small changes on labor rules. The Labour Party, which currently has no seat in parliament but plans to contest the 2024 elections, opposed the passage, with some 300 members rallying to protest the new law near the manpower ministry office.

Chief economic minister Airlangga Hartarto said the new law removed a legal vacuum and was necessary for the country amid global challenges ranging from slowing growth, climate change, the war in Ukraine, to“The job creation decree is a measure to mitigate global crises…. [It] prevents problems from spreading and global vulnerabilities affecting the national economy,” Airlangga told parliament after the passage.

 

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