Following the issuance of Law No. 11 of 2020 on Job Creation (“Job Creation Law”), Presidential Regulation No. 10 of 2021 on Investment Business Fields (“PR 10/2021”) containing a ‘positive investment list’ was issued on 2 February 2021 and will come into effect 30 days after its issuance. PR 10/2021 serves as a hallmark of substantial changes to the government’s approach towards foreign investment; it revokes and replaces the 2016 Negative Investment List (Presidential Regulation No. 44 of 2016 on The List of Business Fields that are Closed or Conditionally Open to Investment) and Presidential Regulation No. 76 of 2007 on the Criteria and Requirements for the Categorization of Closed Business Fields and Business Fields Open with Requirements in the Field of Investment.

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.

While Law No. 11 of 2020 (the “Omnibus Law”) amends various laws in various sectors, this advisory specifically highlights the key changes to Law No. 5 of 1999 on the Prohibition against Monopolistic Practices and Unfair Business Competition (the “Competition Law”). These changes have also been supplemented by Government Regulation No. 44 of 2021 on the Implementation of the Prohibition against Monopolistic Practices and Unfair Business Competition (“GR 44/2021”).

The Omnibus Law on Job Creation which was passed in October 2020 as Law No. 11 of 2020 on Job Creation (the “Job Creation Law”), is claimed to be one of the government’s efforts to accelerate economic growth through creating jobs, encouraging investment and increasing productivity.

Following our firm’s previously published advisory series on the Omnibus Law on Job Creation (the “Job Creation Law”), including among others our overview of the changes to the regulations regarding investment, land, and manpower, this advisory specifically highlights the key provisions of the Job Creation Law on Special Economic Zones amending the following regulations: 1. Law No. 39 of 2009 on Special Economic Zones (“Law 39/2009”); 2. Law No. 36 of 2000 on The Issuance of a Government Regulation in Lieu of Law No. 1 of 2000 on Free Trade and Free Port Zones to be Law; and 3. Law No. 37 of 2000 on The Issuance of a Government Regulation in Lieu of Law No. 2 of 2000 on Free Trade and Free Port Zones to be Law.