Issuance of the Implementing Regulations of the Omnibus Law on Job Creation – The Employment Sector

The Indonesian Government has finally issued various implementing regulations of the Omnibus Law on Job Creation. Four implementing regulations have been issued on the employment sector: 1. Government Regulation No. 34 of 2021 on The Utilization of Foreign Manpower (“GR 34/2021”) 2. Government Regulation No. 35 of 2021 on Fixed Term Employment, Outsourcing, Working Hours and Rest Times and Termination (“GR 35/2021”) 3. Government Regulation No. 36 of 2021 on Wages (“GR 36/2021”) 4. Government Regulation No. 37 of 2021 on The Job Loss Security Program (“GR 37/2021”). In this series of advisories, we highlight the main features of these regulations.

Competition Law Key Amendments under the Omnibus Law on Job Creation as Supplemented by Government Regulation No. 44 of 2021

While Law No. 11 of 2020 (the “Omnibus Law”) amends various laws in various sectors, this advisory specifically highlights the key changes to Law No. 5 of 1999 on the Prohibition against Monopolistic Practices and Unfair Business Competition (the “Competition Law”). These changes have also been supplemented by Government Regulation No. 44 of 2021 on the Implementation of the Prohibition against Monopolistic Practices and Unfair Business Competition (“GR 44/2021”).

The Omnibus Law on Job Creation – An Overview of the Changes regarding the Ease, Protection and Empowerment of Cooperatives, Micro, Small and Medium-Scale Businesses

The Omnibus Law on Job Creation which was passed in October 2020 as Law No. 11 of 2020 on Job Creation (the “Job Creation Law”), is claimed to be one of the government’s efforts to accelerate economic growth through creating jobs, encouraging investment and increasing productivity. Following our firm’s previously published advisory series on the Omnibus Law, including among others our overview of the changes to the regulations regarding investment, land, and manpower, this advisory specifically highlights the key changes to the following laws related to Cooperatives, Micro, Small and Medium-Scale Businesses: 1. Law No. 25 of 1992 on Cooperatives (“Cooperatives Law”); 2. Law No. 20 of 2008 on Micro, Small, and Medium-Scale Businesses (“UMKM Law”); 3. Law No. 38 of 2004 on Roads (“Roads Law”);

The Omnibus Law on Job Creation – An Overview of the Increase in Incentives provided by the Government of Indonesia to create a ‘comfortable business environment’ for Investors in Special Economic Zones

Following our firm’s previously published advisory series on the Omnibus Law on Job Creation (the “Job Creation Law”), including among others our overview of the changes to the regulations regarding investment, land, and manpower, this advisory specifically highlights the key provisions of the Job Creation Law on Special Economic Zones amending the following regulations: 1. Law No. 39 of 2009 on Special Economic Zones (“Law 39/2009”); 2. Law No. 36 of 2000 on The Issuance of a Government Regulation in Lieu of Law No. 1 of 2000 on Free Trade and Free Port Zones to be Law; and 3. Law No. 37 of 2000 on The Issuance of a Government Regulation in Lieu of Law No. 2 of 2000 on Free Trade and Free Port Zones to be Law.

Electronic Certificates Regulation issued by the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency

On 12 January 2021, the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (“MOA”) issued Regulation No.1 of 2021 on Electronic Certificates (“MOA Reg. 1/2021”). This new regulation is intended to optimize the use of information and communication technology by implementing electronic-based land services and thus improve public services and the ease of doing business. Under MOA Reg. 1/2021, a land right (hak atas tanah) certificate, a management right (hak pengelolaan) certificate, a waqf land right (tanah wakaf) certificate, an apartment unit ownership right (hak milik atas satuan rumah susun) certificate and a mortgage right (hak tanggungan) certificate which has been recorded in the relevant land book (“Certificates”) will be issued in the form of an electronic certificate (“Sertipikat El” or “Electronic Certificate”).