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Jakarta Post

Job Creation Law could boost investment, but risks loom

  • Adrian Wail Akhlas

    The Jakarta Post

Jakarta   /   Thu, October 8, 2020   /  11:11 am
The Jakarta Post Image
Activists from the Indonesian Forum for the Environment (Walhi) protest the omnibus bill on job creation in front of the House of Representatives compound in Jakarta on July 9, 2020. (JP/Wendra Ajistyatama)

The recently passed Job Creation Law is expected to boost foreign investment into the country but risks of environmental destruction and a lack of skilled labor could deter potential investors, experts and foreign investors have said. Although the law is a business-friendly way to improve the country’s investment climate, foreign funds might not immediately come flooding in, according to Fitch Solutions Asia country risk research head Anwita Basu. “Indonesia still falls behind relative to the likes of Vietnam in the region due to the lack of scaled manufacturing capacity across sectors, quality of labor and infrastructure deficits,” she told The Jakarta Post in an email correspondence on Tuesday. “Furthermore, the pandemic made the timing of this move awkward.” Laborers, activists and citizens had voiced their opposition to deliberations of the law....