Why Foreign Investors Worried About the Job Creation Law?

Investors and a number of world economic institutions have continued to respond to the Job Creation Law. The Japanese investment manager company, Sumitomo Mitsui Trust Asset Management, sent a letter to the government questioning the impact of the Omnibus Law on Job Creation, which was passed by the House of Representatives (DPR) at the plenary session on October 5, 2020.

Representative Director and President of Sumitomo Mitsui Trust Asset Management, Yoshio Hishida conveyed a letter to the Deputy Minister of Foreign Affairs, Mahendra Siregar. In the letter dated October 15, 2020, Yoshio said investors with long-term investment goals like Sumitomo were worried about the ratification of the Job Creation Law.

"There are strong concerns among long-term investors like us that [such] reforms could undermine efforts that the government has been putting in for years," said Yoshio. However, in his statement on Monday (10/19), Mahendra claimed that long-term investors who raised concerns about the Job Creation Law would continue to invest in Indonesia.