Analyst Believes Omnibus Job Creation Law is Positive for the Business Sector



Petir Garda Bhwana

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  • TEMPO.CO, Jakarta - Anugerah Mega Investama Director Hans Kwee views that the omnibus bill on job creation will be able to provide positive sentiments for Indonesia’s business and economy in general. However, he made it clear that the effects would only be felt in the long run.

    He gave an example of the manufacturing sector, which can benefit from the omnibus law from the relocation of international factories from China to Southeast Asia.

    “The ease of investments for international investors will be positive as it would reduce foreign inflow to the financial world,” Hans Kwee wrote in a written statement on Sunday, October 11. 

    Apart from that, he argues that the newly passed law will be able to protect workers from the threat of business closures caused by close competition and foreign investors that do not enter Indonesia. He also said the law is positive for the business sector and increases investment and domestic consumption. 

    Addressing the nationwide protests against the passing of the omnibus job creation law, he maintains that the protests had not affected the stock market as the protests are short-lived and does not greatly affect the economy. 

    Pelita Harapan University political communication expert Emrus Sihombing commented on the protests and pinned it down to the government’s lack of effectively disseminating the omnibus law before it was passed. “Communication is key,” he said. 

    He argues that the substance of the omnibus law can actually benefit small businesses and slashes the bureaucracy that has loomed Indonesia’s business sector.

    Read also: President Jokowi Explains Why Job Creation Law Needed