Indonesia's Omnibus Law

Indonesia's Omnibus Law

December 2020

On October 2019, at his inauguration ceremony, President Joko Widodo (Jokowi) outlined his vision for Indonesia in 2045. He stated five big initiatives, one of which is to simplify regulations by creating omnibus law, to push for economic transformation for the country.


With that thought in mind, earlier this year, President Jokowi’s government submitted a draft bill to the country’s parliament. The draft is widely known as the “Omnibus Law”. The Omnibus Law has created heated debate and controversy since then. Critics have been arguing that the Government has not involved all stakeholders who will be impacted by these laws, but many also believes that the law will boost the country’s economy.


The Omnibus Law is designed to streamline the country’s complex, sometimes redundant regulatory environment. The law would ease restrictions in 11 clusters, 15 chapters and 186 articles. Clusters covered including relaxation of licensing requirements; investment growth; employment and labor; ease for empowerment and protection of MSMEs; ease of doing business; research and innovation; government administration; imposition of sanctions and penalties; land procurement; government investment and national strategic projects; and economic zones.


It is important to note that the Omnibus Law is still under its promulgation process and is still to be ratified by the President. In fact, many of the details of the various laws which have been amended by the Omnibus Law are still not finalised, thus, Moores Rowland Indonesia will try to assist you on making sure you’ll get the right facts and information along with the analysis of the content of the Law and related regulations.

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