The Indonesian House of Representative has ratified the Jobs Creation Bill (RUU Cipta Kerja and widely known as the "Omnibus Law") on 5 October 2020, after approximately 8 months of deliberation.
There are 76 laws being amended under the Omnibus Law which are aimed to boost investments and create more jobs in Indonesia. Among others, the Omnibus Law introduces (i) provisions to simplify business licensing procedures and (ii) changes to the existing manpower law.
The Omnibus Law is still under its promulgation process and is still to be ratified by the President. Nevertheless, with or without the President's signature, the Jobs Creation Bill will automatically become law on 5 November 2020.
The Omnibus Law sets out a framework for revising the investment regulations surrounding foreign investment and ownership, but it does not in itself overrule the current policies. Details of expected substantive changes are yet to be announced and will require implementation through further rules and legislation.
This article provides a discussion on key changes brought by the Omnibus Law on: (a) enhancement of investment ecosystem and business activities; and (b) changes to the existing manpower law.
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Authors:
Jakarta: Ratih Nawangsari, Partner; Prawidha Murti, Partner; Frederic Draps, Partner; Norman Ibnuaji, Senior Associate; and Rizki Rakhim, Senior Associate.
Singapore: Simon Brown, Partner; Andrew Digges, Partner; Waltter Kulvik, Partner; Angie Ng, Counsel; and Karen Mitra, Senior Associate.
