Jokowi’s job law will lack impact absent more reforms

Significance

The job creation law, designed to improve ease of doing business in Indonesia, is an ‘omnibus law’ -- a single law that revises several other laws. Petitions have been launched against it in the courts, while critics are promising to step up protests.

Impacts

• Jokowi will try to expedite reforms to simplify the bureaucracy.
• In the light of the new legislation, Indonesia could attract manufacturers looking to shift supply chains from China.
• Jokowi will aim to pass more omnibus laws, since passing one such law is quicker than revising several items of legislation.