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The Implementing Regulation of the Omnibus Law on Job Creation in the Construction Sector: Government Regulation No. 14 of 2021

The Indonesian Government has issued Government Regulation No. 14 of 2021 (“GR 14/2021”), as one of the implementing regulations of Law No. 11 of 2021 on Job Creation (the “Omnibus Law”), which amends Government Regulation No. 22 of 2020 on the Implementing Regulation of Law No. 2 of 2017 on Construction Services (“GR 22/2020”). GR 14/2021 introduces more detailed provisions than GR 22/2020 and this advisory highlights the key provisions.

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The New Regulation on Government Procurement of Goods and Services

Presidential Regulation No. 12 of 2021 on Government Procurement of Goods and Services has just been issued as an amendment to Presidential Regulation No. 16 of 2018, as one of the implementing regulations of Law No. 11 of 2020 on Job Creation or the Omnibus Law. It mainly aims to provide more opportunities for micro-level businesses and cooperatives to be involved in the public procurement of goods and services.

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At Last, the Long Awaited and Much Anticipated ‘Positive Investment List’ has been Issued

Following the issuance of Law No. 11 of 2020 on Job Creation (“Job Creation Law”), Presidential Regulation No. 10 of 2021 on Investment Business Fields (“PR 10/2021”) containing a ‘positive investment list’ was issued on 2 February 2021 and will come into effect 30 days after its issuance. PR 10/2021 serves as a hallmark of substantial changes to the government’s approach towards foreign investment; it revokes and replaces the 2016 Negative Investment List (Presidential Regulation No. 44 of 2016 on The List of Business Fields that are Closed or Conditionally Open to Investment) and Presidential Regulation No. 76 of 2007 on the Criteria and Requirements for the Categorization of Closed Business Fields and Business Fields Open with Requirements in the Field of Investment.

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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.

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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”).

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