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Indonesia passes new law to mitigate global crises

Indonesia has approved a new law aimed at addressing the impact of global crises, according to Chief Economic Minister Airlangga Hartarto. The legislation fills a legal void and is deemed necessary to tackle various global challenges, including economic slowdown, climate change, the conflict in Ukraine, and recent issues affecting certain US banks. Airlangga asserted that the job creation decree will prevent the spread of problems and safeguard the national economy from global vulnerabilities. The new law replaces the 2020 Jobs Creation law, which was lauded by foreign investors for simplifying bureaucratic business regulations, but criticised by labour and environmental groups for being too business-friendly. The Indonesian Chamber of Commerce and Industry's Deputy Chair, Shinta Kamdani, noted that the law's passage provided crucial clarity and certainty for current and potential investors following the 2021 court order that raised concerns.


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