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JAKARTA, KOMPAS.TV – A total of 35 foreign investors wrote an open letter to President Joko Widodo (Jokowi) regarding the enactment of the Workplace Creation Act (Job Creation Act).
They are global investors with assets under management of $ 4.1 trillion. Among them, Aviva Investor, Legal & General Investment Management, Chruc of England Pensions Board, Robevo and Sumitomo Mitsui Trust Assets Management.
In an open letter to President Jokowi, these foreign investors questioned the Employment Creation Law. They are concerned that this law will harm environmental, social and governmental conditions.
Other concerns also relate to changes in the licensing framework, various public consultation and environmental management requirements, and the sanctions system. According to them, this will have a negative impact on the environment, human rights and employment.
“While we recognize the need for a trade law reform in Indonesia, we are concerned about the negative impact of certain environmental protection measures influenced by the Omnibus Employment Law. 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 Robevo, on Monday (10/5/2020), as quoted by Kompas.com.
Also read: The government is ready to face the revision of material of the job creation law in the Constitutional Court
According to these foreign investors, this law could create uncertainty and affect the attractiveness of the Indonesian market. Then also, the protection of Indonesian forests.
In the long term, it will be increasingly difficult for the world to prevent the extinction of biodiversity and slow down climate change, which is now a problem for the inhabitants of the Earth.
Although the Employment Creation Law was passed to increase foreign investment in Indonesia, according to them, this law runs the risk of contradicting international standard practice that aims to prevent unwanted harm from business activities.
Indef: Contradictory employment creation law with investment
The economic observer of the Institute for the Development of Economy and Finance (INDEF) Bhima Yudhistira Adhinegara believes that the Employment Creation Law contradicts efforts to increase investment of higher quality.
According to Bhima, one of the important points of investors coming from developed countries before choosing an investment country is to see how the country has good regulations.
Such as environmental protection and labor protection or respect for labor rights.
This is the basic principle of investors, especially those in Japan, Europe and the United States.
Also read: Here is the calculation of severance pay in the Employment Creation Law
“They have principles related to justice for workers’ rights, and also about a decent workplace for workers,” Bhima told Kompas TV on Tuesday (6/10/2020).
Such points, Bhima continued, were not obtained in this law. “The rights of workers and those related to the environment, many regulations have been modified. To the detriment of the environment and workers in the long term ”.
