35 foreign investors express concern about the validation of the Copyright Act of all pages

JAKARTA, KOMPAS.com – Up to 35 global investors with assets under management (AUM) of US $ 4.1 trillion wrote an open letter to President Joko Widodo regarding the Job Creation Act.

The law, which was made using the omnibus law method, was approved by parliament yesterday Monday (10/5/2020).

The open letter explains that the Employment Creation Law runs the risk of damaging environmental, social and governmental conditions.

These global investors are concerned that changes to the licensing framework, various environmental management requirements and public consultations, and the sanctions system will negatively affect the environment, human rights and labor.

Also read: Ministry of Finance: The Employment Creation Law is the Capital for Economic Recovery in 2021

This is considered to create significant uncertainty and could affect the attractiveness of the Indonesian market.

“While we recognize the need for business law reform in Indonesia, we are concerned about the negative impact of certain environmental protection measures influenced by the Omnibus Law on Employment. We have concerns about the negative impact of environmental protection measures affected by the Law. Cipta Kerja Law Omnibus, “Said Peter van der Werf of Robeco quoted by Reuters (10/5/2020).

Reuters reported that 35 investors who wrote an open letter included Aviva Investor, Legal & General Investment Management, Chruc of England Pensions Board, Robevo and Sumitomo Mitsui Trust Assets Management.

It is feared that the Omnibus Law on Employment Creation Law could hamper efforts to protect Indonesia’s forests.

Long-term impact, the world will find it increasingly difficult to prevent the extinction of biodiversity and slow down climate change, which is now a problem for the inhabitants of the Earth.

Although the law was passed to increase foreign investment in Indonesia, this law is considered to run the risk of contradicting international standard practice that aims to prevent unwanted harm from business activities.

The law creates work to encourage Indonesia to become a developed country

Previously, the Coordinating Minister of the Economy, Ailrnagga Hartarto, stated that the Employment Creation Law was one of the ways in which Indonesia could free itself from the trap of a middle-income country. President Joko Widodo’s ambition was expressed earlier when Jokowi delivered a state speech in October 2019.

Also read: Jokowi’s proposal, this is a long journey to issue the Employment Creation Law

“Mr. Joko Widodo at the inauguration of the president-elect for the 2019-2024 term on October 20, 2019, revealed that we have the potential to get out of the middle-income trap,” Airlangga said in a speech after the ratification of the Employment Creation Law at the RI DPR Plenary Meeting.

To achieve this ambition, Airlangga said, the government must be able to provide jobs and improve the quality of the workforce. On the other hand, internal regulation or regulation cuts are needed to make the investment climate in the country attractive.

“That is why the Employment Creation Law was introduced which modifies or revises various obstacles with the aim of generating employment,” Airlangga said.

“The law is an instrument to simplify and increase bureaucratic activity. And thank God this afternoon the law is annulled,” Airlangga said.

Overall, the Job Creation Law consists of 11 groups. Among other things, simplification of licenses, investment requirements, employment, ease of doing business, empowerment and protection of MSMEs, support for research and innovation, government administration, imposition of sanctions, land acquisition, investment facility and government projects and special economic zones.