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YAKARTA: Indonesia’s parliament voted Monday (October 5) to enact President Joko Widodo’s flagship task creation bill for the investment climate in Southeast Asia’s largest economy, while teams of workers protested against the legislation.
Seven out of nine parties accepted the bill, while two rejected it in a vote attended by some lawmakers practically through videoconferencing through the coronavirus pandemic.
The so-called “buses” bill, which aims to revise more than 70 existing laws in a singles vote, aims to accelerate the country’s economic reforms and investment climate.
Global investors have been closely following the progress of the bill in the preparatory phase, with respect to the proposed questionable adjustments to the Labor Act 2003, raising Indonesia’s need to compete more in re-location manufacturing from China.
The bill will cut compensation for compulsory dismissal through employers to 19 times the monthly salary, compared to 32 times now, according to government proposals, showed a noted draft through Reuters.
A coalition of 15 activist groups, joining industry unions, condemned the bill on a Sunday and asked staff to sign up for a national strike scheduled for Tuesday and Thursday.
Yusri Yunus, a spokesman for the Jakarta police, said a permit had been approved for the demonstration.
“With the COVID-19Array scenario . . . We advise everyone to protest,” Yusri said.
Invoice-opposing workers argue that the law would be a “red carpet for investors, expanding the strength of the oligarchy” not only by damaging employee protection, but also through farmers’ land and indigenous communities, according to the coalition’s communiqué.
“Seeing the final (project), I think the House of Representatives has its considerations on the contributions of many parties,” Rosan P told Reuters. Roeslani, president of the Indonesian Chamber of Commerce.
“It’s what (foreign investors) are waiting for. “
FORESTS AT RISK
Global investors managing assets worth $4. 1 trillion have warned the Indonesian government that the bill could pose new dangers to the country’s tropical forests.
In a letter notified through Reuters, 35 investors expressed concern, Aviva Investors, Legal
“While we recognize the need for trade law reform in Indonesia, we are involved in the negative effect of some of the environmental coverage measures affected by the General Task Creation Bill,” said Peter van der Werf, Robeco’s senior participation specialist. , in a prayer.
Investors said they feared the bill would hamper Indonesia’s forest efforts, which in turn would undermine global action to combat biodiversity loss and slow climate change.
“While the proposed regulatory adjustments are aimed at expanding foreign investment, they threaten to violate foreign smart practice criteria designed for the accidental adverse consequences of business activities that can simply deter investors in Indonesian markets,” the letter says.