The Law on Job Creation: a new dawn for investment in Indonesia
Related people
Daniel Ginting
Managing Partner, Ginting & Reksodiputro in association with Allen & Overy
Jakarta
Harun Reksodiputro
Partner, Ginting & Reksodiputro in association with Allen & Overy
Jakarta
Sugianto Osman
Partner, Ginting & Reksodiputro in association with Allen & Overy
Jakarta
Sam Samid
Senior Associate, Ginting & Reksodiputro in association with Allen & Overy
Jakarta
Alamanda Daud
Senior Associate, Ginting & Reksodiputro in association with Allen & Overy
Jakarta
Prasetyo Sukirno
Senior Associate, Ginting & Reksodiputro in association with Allen & Overy
Jakarta
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On 2 November 2020, Indonesia’s Law on Job Creation went into effect.
The Law, amends or revokes over 78 existing laws and introduces new provisions with the aim of increasing investment into Indonesia, and in turn creating jobs. It aims to resolve areas which have frequently caused problems for investors, including: (i) cumbersome licensing procedures; (ii) contradictory regulations and authorities; (iii) rigid labour legislation; and (iv) difficulty in procuring land. Additionally, the Law on Job Creation introduces a new sovereign wealth fund, aimed at driving more investments into Indonesia.