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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 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.
Investment Coordinating Board (BKPM) data show that foreign direct investment (FDI) realization fell by 6.9 percent year-on-year (yoy) in the second quarter to Rp 97.6 trillion (US$6.7 billion) as the pandemic hit the global economy.
The omnibus bill on job creation would amend 73 laws and consists of 15 chapters and 174 articles. The government and businesspeople consider Indonesia to be over-regulated with a total of 43,511 central government regulations as well as ministerial-, agency- and regional-level rules.
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