Indonesia halts job creation bill targeting foreign investment

Opposition to weaker worker protections mounts amid coronavirus threat

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President Joko Widodo reiterated the goal of turning Indonesia into a developed economy by 2045 during his second inauguration in October 2019. © AP

KOYA JIBIKI, Nikkei staff writer

JAKARTA -- The Indonesian parliament suspended discussions Monday on a key job creation bill led by President Joko Widodo, as the coronavirus outbreak heightens concerns about the proposed legislation's impact on workers' rights.

The omnibus bill on job creation limits increases in the minimum wage and eases conditions for firing employees in an attempt to attract foreign investment in previously protected fields. The government submitted the bill to parliament in February. But many Indonesians have since lost jobs as the coronavirus squeezes the economy.

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