The Job Creation Act, also known as the Indonesian Omnibus Law, is a comprehensive law that governs and amends many provisions in various sectors. Signed by President Joko Widodo on 2 November 2020, the Job Creation Act was drafter to uphold the goal of advancing Indonesia, to boost national economic growth by increasing investment, to make doing business in Indonesia easier, and to broaden the job opportunities of Indonesian workers.

Dentons HPRP is conducting a series of studies on each provision and its implementing regulations. In this section, we examine the results of the studies on policies in every business sector.

Indonesia: New law on the formation of law and regulations to accommodate omnibus method

27/07/2022 - The Government and the House of Representatives issued Law Number 13 of 2022 to accommodate the instruction to correct the drafting process of the Job Creation Law.

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Regulatory tax update: Crypto Assets

31/05/2022 - The Government of the Republic of Indonesia issued a new law regarding Harmonization of Tax Regulations. As an implementation of this new law, the Minister of Finance of the Republic of Indonesia has rolled out several regulations including the application of income tax and VAT to Crypto Assets.

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Job Creation Act: Effectiveness of the Job Creation Act and its implementing regulations after Decision of the Constitutional Court No. 91/PUU-XVIII/2020

24/01/2022 - The Constitutional Court put an end to the lengthy debates and discussions regarding the validity and effectiveness of the Job Creation Act by issuing Decision of the Constitutional Court No. 91/PUU-XVIII/2020. What is the impact of this decision, how is public reaction and government’s attitude towards it?

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Amendment to the Investment List Regulation and the Risk-Based OSS System introduced

10/08/2021 - Following the enactment of Presidential Regulation No. 10 of 2021 concerning Investment Business Fields, several objections were conveyed by certain social organizations, specifically towards the investment in alcoholic beverage manufacturing.

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Indonesian Legal Requirements Relating to Captive Power Supply Business

03/08/21 - The Government of Indonesia has enacted a Government Regulation which serves as an implementing regulation to the Job Creation Act in the Captive Power Supply field. The new regulation provides the legal requirements for a party carrying out captive power supply.

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Job Creation Act: Making Investment in Indonesia’s Railway Business Easier

11/06/21 - The Government of the Republic of Indonesia has promulgated a Government Regulation concerning Implementation of the Railway Sector. What are the amendments introduced in the new regulation and how do the new provisions make investment in Indonesia’s railway sector easier?

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Job Creation Act: Investing and Land Procurement in Indonesian National Strategic Projects made easier

19/05/21 - The Government of the Republic of Indonesia issued Government Regulation concerning Making National Strategic Projects Easier and Government Regulation concerning the Implementation of Land Procurement for the Public Interest as the implementing regulations for Job Creation Act on Land Procurement for Development in the Public Interest.

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Job Creation Act: Halal certification process simplified

19/05/21 - The Government issued a new regulation concerning Implementation of Halal Product Warranties as the implementing regulation for the Job Creation Act. The new regulation aim to ease the halal certification process for businesses.

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Job Creation Act: Changes on sanctions and legal proceedings for monopolistic practices and unfair business competition

05/05/21 - The Job Creation Act has several provisions that amend the Law of Prohibition of Monopolistic Practices and Unfair Business Competition. In order to implement these provisions, the Government of the Republic of Indonesia issued Government Regulation No 44 of 2021.

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Tax treatment of income tax to support ease of doing business

22/04/21 - Job Creation Act has amended several laws including the tax laws. The amendment in the tax laws, specifically the Income Tax Act Law, provides a relaxation of income tax to support ease of doing business.

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Job Creation Act: Implementing Regulation on Agricultural (Plantation) Sector

20/04/21 - Plantation sector has a significant impact on the state income in Indonesia. Considering the situation, the Indonesian government has provided some facilitations and regulations to attract domestic or foreign investors to engaging in this business in Indonesia.

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Government’s Further Action after Job Creation Act: GR 25/2021, which Impacts Electricity Business

14/04/21 - As one of the implementing regulations of the Job Creation Act, the Indonesian government has recently enacted Government Regulation concerning the Implementation in the Energy and Mineral Resources Sector.

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Highlights on Distribution of Goods under Implementing Regulation of the Job Creation Act

8/04/21 - The Indonesian government has recently enacted Government Regulation concerning the Operation of  the Trade Sector as one of the implementing regulations of the Job Creation Act. The new regulation will bring new opportunities for foreign investment companies in the retail sector.

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Simplification of licensing procedures in hospital businesses

31/03/21 - As an effort to establish an improved healthcare business, the Job Creation Act has also changed several provisions contained in the current healthcare regulations. To support these amendments, the Government of the Republic of Indonesia has promulgated an implementing regulation concerning the Implementation of Hospital Businesses.

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New Legal Certainty for Investors on Balanced Housing Requirements, Multi Storey Housing Ownership Rights, and Housing Supply Acceleration Agency

30/03/21 - In order to encourage a good investment environment in the public housing industry, the Government has promulgated a Presidential Regulation and several Government Regulations. The new regulations are issued as mandated under the Job Creation Law to speed up the licensing process.

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The Impact of the Enactment of Omnibus Law’s Implementing Regulation on Businesses in the Aviation Sector - 2nd Series: Unmanned Aircraft Operations

26/03/21 - A Government Regulation concerning the Operation of the Aviation Sector that has just been enacted briefly mentions unmanned aircraft (or drones). Meanwhile, the procedures and requirement to operate drones are regulated in a Ministerial Regulation, which was enacted in 2020.

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The Post Job Creation Act (Omnibus Law) Procurement of Goods/Services Regulation

23/03/21 - Following the issuance of the Job Creation Act, the Indonesian government has issued implementing regulations, including a Presidential Regulation concerning Government Procurement of Goods/Services.

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Omnibus Law: Implementing Regulations to Boost The Growth of Local MSMEs

19/03/21 - The Indonesian Government has issued several Government Regulations related to Micro, Small and Medium Enterprises (MSMEs) as an implementing regulation of the Job Creation Act.

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The implementation of Risk-Based Business Licensing

15/03/21 - The objectives of the Job Creation Act include simplifying the provisions on business licensing in Indonesia and shifting the approach to business licensing based on the risk category for each business activity. Recently, the Government of Indonesia enacted a Government Regulation concerning the Implementation of Risk-Based Business Licensing.

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The impact of the enactment of Omnibus Law’s implementing regulation on businesses in the Aviation sector

11/03/21 - The Government of Indonesia has enacted a government regulation concerning the operation of the Aviation sector as an implementing regulation of the Job Creation Act. The new regulation includes detailed technical requirements in the law.

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Job Creation Act: Coal Mine Downstream Businesses are Officially Royalty-Free

09/03/21 - The Government of Indonesia has enacted a Government Regulation which serves as an implementing regulation to the Job Creation Act in the Energy and Mineral Resources Sector. The new regulation includes a provision to allow mining companies to obtain royalty-free benefits. What is in the new regulation and what does it mean for businesses?

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Job Creation Act: More benefits and opportunities in the economic zones

08/03/21 - The Government of Indonesia has recently developed economic zones to boost economic development in the region. By the Job Creation Act Law, which was enacted in November 2020, the Government promotes the economic zones further by offering attractive benefits and special facilities. These areas are prepared to maximize industrial activities, export, import, and other economic activities that have high economic value.

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A new Indonesian investment policy

25/02/21 - The Government of Indonesia has issued a series of implementing regulations for the Law No.11/2020 concerning the Job Creation encompassing various sectors. Dentons HPRP is conducting a study of each of the implementing regulations for the Job Creation Law and will issue our results for each policy in each business sector.

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Job Creation Law: Land Procurement

22/12/20 - On 2 November 2020, the Government enacted the Job Creation Act Law No. 11 of 2020 (“Job Creation Act”) which amends Law No. 2 of 2012 on the Land Procurement for Development for the Public Interest (“Land Procurement Act”). This amendment is one of the government’s attempts to alleviate many obstacles to executing infrastructure projects in Indonesia.

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Omnibus Law for plantation sector - What's it all about?

26/11/20 - The Job Creation Law, also known as the Indonesian Omnibus Law provides for new norms and terminology for Business Licensing (Perizinan Berusaha), and amends a number of articles in many laws, including the plantation law.

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Omnibus Law on Job Creation: New opportunities for investment

19/11/20 - To encourage more investment into Indonesia, the Job Creation Act offers less restrictive provisions on investment. It is expected that the more investment coming into Indonesia, the more new jobs are created.

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Indonesia launches its Sovereign Wealth Fund

17/11/20 - Many would consider the Job Creation Act to be an important milestone in structural reform in Indonesia, expecting it to strengthen monetary policy, provide a more accommodative fiscal policy, and accelerate infrastructure spending.

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Job Creation Law: The impact of the enactment of the Job Creation Act on businesses in the aviation sector

13/11/20 - The Job Creation Act Law No.11 of 2020 (“Job Creation Act”), also known as the Omnibus Law, which was enacted and came into effect on 2 November 2020, is a breakthrough. It acts as a comprehensive law that governs and amends various provisions in various sectors, including the aviation sector.

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Job Creation Law: State Owned Enterprises (BUMN) as catalysts for research and innovation

09/11/20 - The Job Creation Omnibus Bill was enacted by the President of the Republic of Indonesia as Law No. 11 of 2020 concerning Job Creation on 3 November 2020 (the “Job Creation Act”). One of the provisions in the Job Creation Act which has an important role in a business’s success and effectiveness is the support for research and innovation.

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Omnibus Bill on Job Creation: Simplification of Business Licensing

06/11/20 - The Job Creation Law was finally signed by President Joko Widodo on 3 November 2020. Dentons HPRP’s lawyers, Fabiola Hutagalung (Partner), Michael A. Kaihatu (Partner), R.A. Sabrina Stamboel (Senior Associate), and Monica Elizabeth Dina (Associate) look at the first cluster in the new law, which contains a simplification of business licensing, and highlight several essential points.

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