Investments are secure, Jokowi reassures businesses

JAKARTA •Indonesia's President Joko Widodo yesterday said his government would ensure legal certainty for investors, offering continuity guarantees amid jitters and confusion over last week's court ruling against a controversial job creation law.

The Constitutional Court, ruling last Thursday on a case brought by labour unions, said there were procedural flaws in the formation of the legislation passed last year, which the government had touted as potential a game-changer in luring in foreign investment.

The court told the government to make necessary amendments within two years. The "omnibus" legislation saw the revision of more than 70 existing laws, in an effort to reduce red tape and streamline new business permitting.

Mr Widodo, popularly known as Jokowi, stressed that the court had ruled the law would remain in effect pending the changes, which his Cabinet would address as quickly as possible.

"I assure businesses and investors, both domestic and international, that the investments that have been made and investments that are being and will be processed, will remain safe and secure," he said. "I will make sure that the government guarantees the security and certainty of investment in Indonesia."

Economists warn that the ruling could dim Indonesia's investment outlook and as business groups seek clarity and guarantees.

Chief Economic Minister Airlangga Hartarto yesterday said operations of the Indonesia Investment Authority, its sovereign wealth fund, would remain unchanged. The fund was established based on the omnibus law and foreign investors have pledged billions of investment.

REUTERS

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A version of this article appeared in the print edition of The Straits Times on November 30, 2021, with the headline Investments are secure, Jokowi reassures businesses. Subscribe