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The Law on Job Creation: a new dawn for investment in Indonesia

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Ginting Daniel
Daniel Ginting

Managing Partner, Ginting & Reksodiputro in association with Allen & Overy

Jakarta

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Reksodiputro Harun
Harun Reksodiputro

Partner, Ginting & Reksodiputro in association with Allen & Overy

Jakarta

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Sugianto Osman

Partner, Ginting & Reksodiputro in association with Allen & Overy

Jakarta

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Samid Sam
Sam Samid

Senior Associate, Ginting & Reksodiputro in association with Allen & Overy

Jakarta

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Daud Alamanda
Alamanda Daud

Associate, Ginting & Reksodiputro in association with Allen & Overy

Jakarta

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Sukirno Prasetyo
Prasetyo Sukirno

Associate, Ginting & Reksodiputro in association with Allen & Overy

Jakarta

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09 November 2020

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.