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View all search resultsIndonesia’s Job Creation Law may facilitate investment and help revive the economy, but relaxed environmental regulation and widespread protests by labor unions could discourage foreign investors and limit the law’s benefits, Moody’s Investor Service has said.
The draft revision also scraps all existing articles stipulating BI’s independence in monetary policy making, which it was granted in the wake of the Asian financial crisis to help ensure the country had a prudent central bank.
The rationale behind the ratings decisions varies for each company but revolves around liquidity risks, concerns over debt repayment ability, a sharp rupiah depreciation, low commodity prices and overall weak demand.
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