Indonesia Says Foreign Investors Welcome the Controversial Omnibus Law

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Durian. Indonesian Industry Minister Agus Gumiwang Kartasasmita said foreign investors and industry players share positive views towards the discussion of the controversial Omnibus Law on Job Creation, following reports that 35 investors expressed concern over the damaging effect that might cause by the law to the country’s environment.

Kartasasmita said he’s optimistic that the omnibus law will serve its main purpose to create plenty of job opportunities for Indonesians because domestic and foreign investors positively welcome the deliberation.

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“During our work visits to several countries, industry players and investors welcome the deliberation of the omnibus law,” Kartasasmita said on Oct.18.

“And if these [planned] investments are realized, it will create a great amount of job opportunities,” he added.

As the Industry Minister, Kartasasmita emphasized that while the law will accelerate the growth of manufacturing industry as one of the country’s GDP backbones, the main and end goal of the law has always been to increase employment in Indonesia.

“The growth of manufacturing industry will certainly bring positive impact to employment. Therefore, this is the upside of the omnibus law for us,” the ministry said.

Meanwhile, earlier this month Reuters reported that 35 global investors with $4.1 trillion in assets wrote an open letter addressed to the Indonesia government, highlighting concern over environmental risks the law might bring – and how it could hinder global investors from doing any business activity in Indonesia.

Among the 35 investors are Aviva Investors, Legal & General Investment Management, the Church of England Pensions Board, Robeco and Japan’s largest asset manager, Sumitomo Mitsui Trust Asset Management.

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