Jokowi’s haste could hinder effort to boost investment

Subject

Indonesia's proposed omnibus laws.

Significance

President Joko ‘Jokowi’ Widodo aims to simplify business regulations and provide more incentives for investment in Indonesia. To that end, he wants parliament to pass ‘omnibus’ laws -- single laws that each revise several other laws -- on job creation and taxation.

Impacts

• The law on job creation will continue to prompt protests among trade unions, students and environmental groups.
• Cuts to corporate tax could lead to a widening of Indonesia’s fiscal deficit.
• Indonesia will aim to increase its exports as part of efforts to raise GDP growth.