Constant Changes in Omnibus Draft May Repel Investors, Says Economist

TEMPO.CO, Jakarta - Institute for Development of Economics and Finance (Indef) economist, Bhima Yudhistira Adhinegara, argues that the constant changes in the omnibus job creation draft may present a bad precedence in the eyes of potential investors.

He fears investors’ trusts towards Indonesia’s regulatory stability may drop due to the inconsistency in the omnibus draft law’s substances after it had been passed.

“The changes in the job creation law’s script may cause confusion among investors, even though it had been passed by the House of Representatives (DPR),” said Bhima on Tuesday, October 13. “In the end, the regulatory quality in Indonesia may well be questioned.”

He then made an example of a situation where an investor is ready to enter Indonesia but is postponed due to the changes that were made again on the omnibus law that is designed to simplify and reduce bureaucracy to create jobs - hence its name. 

The Indef economist’s question comes after several versions of the omnibus job creation law had been issued, with the final confirmed version to be the one with 1,035 pages. However, there is currently an 812 -page version in circulation.

The House of Representatives (DPR) secretary general, Indra Iskandar, confirmed the 812-page version and defended that it had changed due to the changes made to the printing formats. 

A Global Competitiveness Index report, Bhima said, said policy instability issues ranks fifth in the causes for Indonesia’s low competitiveness level in attracting international investors.

Read also: DPR Sec-Gen Says Job Creation Law is 812 Pages Long

FRANCISCA CHRISTY ROSANA | BUDIARTI UTAMI PUTRI