On 2 November 2020, the Indonesian government enacted the Omnibus Law on

Job Creation - a much anticipated piece of Indonesian legislation that has been

long awaited by various stakeholders, including Indonesian business owners who

are seeking a more business-friendly environment to boost Indonesian economic

growth and investment. The primary purpose of the Omnibus Law is to create

greater job opportunities for Indonesians by promoting greater investment



The law comprises 15 Chapters with 186 Articles which cover 10

(ten) primary "clusters" that deal with the following matters:


  1. investment ecosystem and businesses improvement;
  2. employment;
  3. facilities, protection, and empowerment of cooperatives as well as micro, small

and medium enterprises;

4. ease of doing business;

5. research and innovation support;

6. land acquisition;

7. economic zone;

8. central government investment and acceleration of national strategic projects;

9. government administration implementation to support job creation; and

10. imposition of sanctions.


Omnibus Law differentiates business risks into 3 (three) categories, as follows:


  1. Low Risk Business Activities
  2. Medium Risk Business Activities
  3. High Risk Business Activities

Source: Dikti.kemdikbud.com

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