Indonesia’s Pandemic Response: A Law to Create Millions of Jobs – By Ralph Jennings (VOA News) / Oct 28 2020
TAIPEI, TAIWAN – A landmark law passed this month in Indonesia will open the populous, impoverished country to labor-intensive industry like many of its Southeast Asian neighbors despite a hit to worker rights, people on the ground say.
The 905-page Omnibus Bill on Job Creation bill will give millions of young people chances to work, including in formal jobs that can be hard to find because older Indonesian laws discouraged foreign investors from setting up factories, analysts believe.
Indonesians are struggling to earn income during an unrelenting COVID-19 outbreak that prompted shutdowns from April. The nation with nearly 400,000 infections reported a sharp drop in retail sales from April through August and a fall in exports over the three months ending in September.
“With this new law, it is expected that the investment would come not only to the Indonesian economy, but also come to the labor-intensive part, and by getting more investment in that area it is expected that more jobs will be created, and those jobs are more of the quality jobs, not only informal jobs,” said Yose Rizal Damuri, economics department head with the Center for Strategic and International Studies research organization in Jakarta.