Jakarta fears labour law refit will impact fund flows


Unless the government and the House of Representatives can settle the matter swiftly, Apindo said, the ensuing regulatory limbo could hurt investor confidence. — The Jakarta Post

JAKARTA: The Indonesian Employers Association (Apindo) has warned that a recent court order to overhaul the 2003 Manpower Law will create regulatory uncertainty, while prolonging the process could deter investments, especially in labour-intensive industries.

Unless the government and the House of Representatives can settle the matter swiftly, Apindo said, the ensuing regulatory limbo could hurt investor confidence and undercut president Prabowo Subianto’s goals of attracting substantial foreign investment and driving 8% economic growth.

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