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View all search resultsBureaucratic hurdles, in particular the lack of regional regulations, still remained the greatest obstacle to investment projects despite the sweeping reforms made through the Job Creation Law, the government told regional leaders at Tuesday’s Rakornas.
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.
Red tape prevented Indonesia from climbing up the World Bank’s ease of doing business ranking last year, hence why the country has been ranked 73rd since 2018. The President wants the country reach the 40th position this year.
The government has drafted a plan to streamline licensing procedures through the omnibus bill on job creation that would strip local administrations of their power to manage natural resources and the environment, allowing only the central government to have authority over spatial planning and land, forest and coastal area management.
The omnibus bill on job creation, currently under deliberation at the House of Representatives, seeks to revise 79 prevailing laws and more than 1,200 articles, from labor and mining regulations to business license and environmental laws.
The COVID-19 crisis has exposed fundamental problems in the distribution of social assistance, particularly the lack of reliable recipient data, as the government scrambles to shield the most-affected parts of society from economic pain.
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