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Jakarta Post

Jobs law not enough to boost extractive industries, businesses say

  • Norman Harsono
    Norman Harsono

    The Jakarta Post

Jakarta   /   Wed, October 14, 2020   /  08:55 am
The Jakarta Post Image
Heavy equipment owned by PT Berau Coal is used for coal mining activities at the Binungan mining site in East Kalimantan.(JP/Indra Harsaputra )

Extractive industry players have expressed doubt that the recently passed Job Creation Law will be quick to solve issues hindering the sector’s growth despite hopes over deregulation and potential future investments offered through the legislation. The omnibus law simplifies administrative-related articles from 79 older laws in various sectors, including oil and gas, mining and geothermal laws, in the hopes of growing businesses and generating employment. Three extractive industry association leaders have said that, while cutting red tape is important to attract investment, the law failed to address many other critical issues, including the most immediate one: the COVID-19 pandemic. “This [law] is not going to immediately boost upstream oil and gas activity. If anything, activity will continue going down because of COVID-19 and low oil prices,” Indonesian Oil a...