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Government reveals plan for proposed omnibus law on job creation: Ease investment
The planned omnibus law would revise more than 70 prevailing laws as part of a broader effort to improve competitiveness.
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President Joko “Jokowi” Widodo during the 14th East Asia Summit in Bangkok on Monday, on the sidelines of the 35th ASEAN Summit. (Presidential Press Bureau/Rusman)
P
resident Joko “Jokowi” Widodo’s second-term administration is preparing an omnibus bill on job creation that will include provisions aimed at improving the country’s ease of doing business score to attract more investment.
A heavy flow of investment is expected to create more jobs in the country, which currently faces weakening investment growth.
The planned law, which would revise more than 70 prevailing laws, would put an emphasis on simplifying business licensing and investment processes in the country as part of a broader effort to improve competitiveness, said Coordinating Economic Minister Airlangga Hartarto after a limited Cabinet meeting in Jakarta on Monday.
“The government will encourage a shift in philosophy from a licensing-based approach to a risk-based approach,” he said at the Presidential Office on Monday. “This means that small and medium enterprises that carry no risks will only need to register their businesses without having to procure any license, while businesses that carry more risks will have to adhere to certain standards.”
The government would also ease the land acquisition process for national strategic projects by ensuring proper licenses are produced to allow investors to immediately realize their investment projects, he added.
Read also: Jokowi pushes for passage of omnibus laws: What are they?
Jokowi mentioned the plan to issue an omnibus law on job creation during his inauguration speech in October, saying dozens of laws that hampered job creation and the development of small and medium enterprises would be revised at the same time once the law is issued.
