ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Jokowi's labor law reforms risk antagonizing Indonesia's unions

Jakarta needs to simplify system which puts off foreign business investment

| Indonesia
Hundreds of labors hold protest against the employment omnibus law in Jakarta on Jan. 20: there is resistance from labor unions, particularly to the sections on creating jobs and labor reform.   © Anadolu Agency/Getty Images

Indonesia, which sits below Singapore, Malaysia and Thailand in global competitiveness rankings, is a classic example of how legal uncertainty, legislative sprawl and labor issues can put off global investors.

In fact, in President Joko "Jokowi" Widodo's first term from 2014 to 2019, Indonesia issued at least 10,180 regulations, consisting of 131 laws, 526 government regulations, 839 presidential regulations and 8,684 ministerial regulations. Indonesia is a hyper-regulated market, with institutions, departments, ministries, local governments and central government often creating overlapping laws and rules.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more