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

Prasetyo Sukirno
Associate, Ginting & Reksodiputro in association with Allen & Overy
Jakarta
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.