Support Measures

OMNIBUS LAW 2020: Overview Series

On 5 October 2020, the Legislation Body of the House of Representatives of the Republic of Indonesia (“DPR”) and the Indonesian government agreed to pass the Omnibus Bill on Job Creation, commonly known as the Omnibus Law. The bill is a breakthrough effort by the government to comprehensively amend 76 sectoral laws and amend or revoke hundreds of regulations to create job opportunities and improve Indonesia’s investment ecosystem.

The bill will be delivered to the President within seven days after the date of the plenary meeting at DPR on 5 October 2020. The President is expected to sign the bill into law, failing which, it will automatically become law within 30 days after the draft bill is jointly agreed by the President and DPR.

The Omnibus Law is by far the most ambitious and complicated piece of legislation in Indonesia, covering many sensitive areas, such as employment, that previous governments have refused to touch. It consists of 15 chapters and 186 articles, spanning over 900 pages. It mainly covers the following:

1. investment growth and licensing leniency;
2. protection and enforcement of small-medium scale enterprises and cooperative;
3. employment;
4. research and innovation;
5. ease of doing business;
6. land procurement;
7. economic area;
8. central government investment and national strategic projects;
9. government administration; and
10. sanctions.