An Introduction to the Proposed Omnibus Law
To boost investment and ease of doing business in Indonesia, President Joko Widodo introduced the idea of enacting an Omnibus Law. As the title implies, the Omnibus law, is a single law covering various distinct matters.
The President has asked for two major areas to be covered by the Omnibus Law: the creation of employment and the empowerment of Micro, Small and Medium-scale Enterprises (UMKM). It will also re-regulate the tax sector and licensing matters in Indonesia. The Ministry of Finance is working on the draft Omnibus Law on the tax sector and the Coordinating Ministry of Economic Affairs is working on the draft on licensing.
Written by Lina Amran, Kurniawan Tanzil, Stephanie Kandou, and Budhy Apriastuti Evita, read about the areas that the Omnibus Law covers by clicking the button below.
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Issuance of the Implementing Regulations of the Omnibus Law on Job Creation – The Employment Sector
The Indonesian Government has finally issued various implementing regulations of the Omnibus Law on Job Creation. Four implementing regulations have been issued on the employment sector: 1. Government Regulation No. 34 of 2021 on The Utilization of Foreign Manpower (“GR 34/2021”) 2. Government Regulation No. 35 of 2021 on Fixed Term Employment, Outsourcing, Working Hours and Rest Times and Termination (“GR 35/2021”) 3. Government Regulation No. 36 of 2021 on Wages (“GR 36/2021”) 4. Government Regulation No. 37 of 2021 on The Job Loss Security Program (“GR 37/2021”). In this series of advisories, we highlight the main features of these regulations.
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New Indonesian Regulation Requires Ministerial Approval for Changes to Shareholdings or Board Members of Companies doing Business in the Field of Energy and Mineral Resources
On 14 July 2017, the Minister of Energy and Mineral Resources (“MEMR”) issued MEMR Regulation No. 42 of 2017 on the Supervision of the Implementation of Business Activities in the Field of Energy and Mineral Resources (“Reg 42/2017”)
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Risk Based Business Licensing: the New Approach by the Government of Indonesia to Attract More Investment
With the ongoing global pandemic affecting our economic nationwide in 2020, the Indonesian Government has issued Omnibus Law in 2020 to attract more investment as part of our national economic recovery program. There are numbers of current implementing regulations affected by the Omnibus Law and we have seen quite a significant number of new regulations issued by the Government to amend or replace the current ones.
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COVID-19 and Force Majeure
The COVID-19 pandemic is causing critical implications for businesses. Please read our legal advisory exploring the concept of force majeure under contracts entered into in Indonesia.
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