The "Omnibus Law" has introduced significant reforms to Indonesia's business environment, making this major ASEAN economy an increasingly attractive destination for Hong Kong investors.
Indonesian President Joko Widodo signed the Omnibus Law in November last year. With a wide‑ranging remit, the law makes sweeping changes to more than 70 labour, tax and other key laws to cut red tape and make the country more welcoming to investment.
It also simplifies business license procedures across almost all sectors, eases employment regulations on expats, and significantly improves the ease of doing business in the country.
With a population of 270 million and growing, Indonesia is currently the largest market in Southeast Asia and the fourth largest in the world. Prior to the pandemic, Indonesia's GDP had been growing at above 5% annually, and was one of Southeast Asia's brightest emerging markets.
However, this growth has been slammed by the Covid-19 pandemic, which tipped the country into its first full-year contraction in more than 20 years. On a more positive note, the pandemic helped speed up the introduction of reforms like the Omnibus Law to kick-start Indonesia's post-Covid-19 recovery.
Together with the Indonesia section of the ASEAN-Hong Kong FTA having come into force last year, Indonesia's forward-thinking reforms are making it an increasingly appealing market and investment destination for Hong Kong businesses.
• What are the implications of the recent changes in the country's employment and business laws?
• How can businesses take advantage of the Omnibus Law and ASEAN-Hong Kong FTA to establish a manufacturing base in Indonesia?
• More broadly, what are the prospects for Indonesia's economy?
To answer these questions and more, the Chamber has organized a webinar on 27 April to give members a picture of the potential impact of the Omnibus Law and the opportunities expected to arise.
Riza Buditomo, Partner in Trade and Customs at HHP Law Firm (member of Baker & McKenzie International), will explain how the law will affect supply chains in Indonesia's industry and manufacturing sectors. He will discuss the procedures and legal basis of export restrictions and import leniency for raw materials/supporting materials under the law, as well as the current status of temporary import and how it impacts businesses.
Alvira Wahjosoedibjo, Associate Partner in Employment and Compensation Practice Group at HHP Law Firm, will talk about the impact of the Omnibus Law on employment and labour, covering areas such as employment agreements, employment of foreigners, outsourcing, and termination of employment.
This is an invaluable opportunity to hear from experts on Indonesia and learn about the Omnibus Law, so register now!