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Jakarta Post

Balance facilitating investment with efforts for decent work

  • Indrasari Tjandraningsih

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PREMIUM
Bandung, West Java   /   Wed, January 22, 2020   /  08:08 am
Balance facilitating investment with efforts for decent work Labor with the People Movement (Gebrak) that consist of labor and student alliances march toward the House of Representatives Building in protest of the omnibus bill on job creation in Jakarta on Monday, Jan. 13, 2020. (JP/Moch. Fiqih Prawira)

President Joko “Jokowi” Widodo has stressed the importance of foreign investment to improve the economy since assuming office. Like his predecessors, the President strongly believes investment will improve people’s welfare. In Jokowi’s first term, his administration prepared 16 economic policy packages to facilitate investment. Then-vice president Jusuf Kalla also supported the policy to reduce labor costs; while for decades tripartite negotiations between the government, business sector and unions had determined the annual minimum wage, a formula was determined to set minimum wages, thereby abandoning the lengthy negotiations. However, those steps failed to adequately increase investment inflow. Therefore, at the beginning of his second term, the President took a giant step, introducing a planned omnibus bill that would summarize over 70 acts in one bill ca...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.