THE INTRODUCTION
The landmark passage of the Omnibus Law on Job Creation is the foundation for President Jokowi’s vision of Indonesia as an upper middle-income country by 2045. The Law makes changes to more than 70 laws across various industry sectors reflecting its tremendous ambition. It seeks to strengthen and transform Indonesia’s economy by increasing competitiveness, creating jobs and making it to easier to do business in Indonesia.
Business licensing, investment, taxation and labour rules to boost job creation are the focus of the Law. The Law includes meaningful gains across investment rules such as in the infrastructure, power and shipping sectors to note a few. Changes to labour provisions were passed with broad agreement across most stakeholders; a Labour law that, despite efforts, had not been reformed since 2003.
The Omnibus Law has captured worldwide interest with particular attention on the environment. The Law does not change Indonesia’s environmental standards nor rolls back environmental gains in areas such as reducing deforestation. Rather, the focus of the Law is on the investment licensing process and how best Indonesia can realize investment consistent with its ambitious environmental goals.
THE EVENT
The Tri Hita Karana Forum Partners Dialogue: “Indonesia Omnibus Law for a Better Business Better World” held on Monday, 30 November, 15.45-17.45 hrs Jakarta Time brought together more than 230 senior executives from 30 countries representing multi multinational corporations from across industry sectors, financial institutions, investors and civil society for an open conversation with the Government of Indonesia.
The Forum provided an opportunity for a deep dive discussion covering issues related to environment, job creation, investment climate, and taxation.
The Government of Indonesia represented by Vice Speaker of House of Representative, five Ministers and senior Indonesian government officials from across ministries - the Coordinating Ministries of Maritime Affairs and Investment and Economic Affairs, the Ministries of Environment and Forestry, Agrarian and Spatial Planning, Finance, Labour, Research and Development - including the Indonesia Investment Coordinating Board participated at the Dialogue.
The Tri Hita Karana Forum Partners Dialogue was held with support from THK partners International Chamber of Commerce (ICC), UN SDSN, United In Diversity Foundation, KADIN and APINDO.
THE RECORDED SPEECHES
H.E. Luhut B. Pandjaitan
Coordinating Minister for Maritime Affairs and Investment, Republic of Indonesia
Paul Polman
Co-Founder and Chair, IMAGINE; Honorary Chair, International Chamber of Commerce (ICC)
H.E. Lestari Moerdijat
Vice Chairman MPR (People Consultative Assembly), Republic of Indonesia
H.E. Sofyan Djalil
Minister of Agrarian and Spatial Planning, Republic of Indonesia
H.E. Siti Nurbaya Bakar
Minister of Environment and Forestry, Republic of Indonesia
Lord Nicholas Stern
IG Patel Professor and Chair, Grantham Research Institute on Climate Change and Environment, London School of Economics/ NCE
Satu Kahkonen
Country Director Indonesia and Timor Leste, World Bank
Jorge Moreira da Silva
Director, DCD OECD
John Denton
Secretary General, International Chamber of Commerce
Richard Jeo
Senior Vice President Asia, Conservation International
Closing Statement
John Denton
Secretary General, International Chamber of Commerce