In February, Indonesian President Joko Widodo’s government submitted a draft bill to the country’s parliament. The draft is widely known as the “Omnibus Law” and aims to transform Indonesia’s economy. The bill has strong implications for multinationals operating or considering investing in Southeast Asia’s largest economy.
The omnibus law is a comprehensive bill that seeks to strengthen the economy by increasing competitiveness, creating jobs and making it to easier to do business in Indonesia.
PT J.P. Morgan Sekuritas Indonesia considers the existence of the Omnibus Law of the Job Creation Law (Ciptaker) as a positive catalyst for the financial market in Indonesia. This is because the new law is considered a reform of existing policies in Indonesia, one of which is to attract foreign direct investment (FDI). This law is needed to increase the contribution of FDI to domestic economic growth.
Good news has begun to enter the country since the existence of the Omnibus Law, such as Tesla’s plan to build a electric vehicle battery factory in the country, just as the two largest electric vehicle battery manufacturers in the world, Contemporary Amperex Technology Co. Ltd. from China and LG Chem Ltd. from South Korea are also planning the same thing.
This Law is expected to be able to create employment opportunities in the country and have an impact on Indonesia’s GDP.
It is predicted that if the contents of this new law are in accordance with market expectations, meaning that it is accepted by the market and business actors, the financial market and capital market conditions are predicted to be good.
The World Bank gives positive response on Omnibus Law as it is committed to working with Indonesia government on these reforms, toward economic recovery and a brighter future for all Indonesian.
Not only Omnibus Law, the good news coming from Covid-19 vaccines. The Indonesian government ensures that 1.5 million people will get the Covid-19 vaccine soon. The vaccine used is a Sinovac production from China which has completed its phase 3 clinical trial in 2 countries.
Now Indonesia Food & Drug Association is having the inspection on how Sinovac vaccines produced for the purpose of issuing Halal Certificate in Indonesia.
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