Indonesia - New Job Creation Law Finally Passed

On 5 October 2020, the Indonesian Parliament passed the long awaited Omnibus Law on Job Creation (“Job Creation Law”) designed to promote investment and economic growth. This omnibus law contains the most significant legislative reforms to the Indonesian investment framework in recent years, in particular aimed at significantly easing investment and licensing restrictions. It also introduces some controversial amendments to Indonesia’s antiquated manpower laws in order that Indonesia can better compete with other countries in the region to attract labour intensive foreign investment.

In this publication, we have outlined the key general reforms introduced through the Job Creation Law, being:

  • new regulatory framework on investment;
  • simplification and centralisation of business licensing;
  • manpower law reforms; and
  • land related reforms.

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