Overview

Continuing with our ongoing series on the Draft Bill on Job Creation (“Draft Bill”), having previously covered the topics of basic business licensing requirements and manpower, this edition of Indonesian Law Digest (“ILD”) will offer up the third chapter of the first part of our Omnibus Law series. This third chapter will discuss provisions set out under the Draft Bill which address remaining topics relating to non-government investments. Our discussion originally aimed to exclude provisions relating to Micro-, Small- and Medium-Scale Enterprises (Usaha Mikro, Kecil dan Menengah – “UMKM”), which were considered to possess specific characteristics in comparison with other business players affected by the provisions set out under the Draft Bill. We were, therefore, planning to cover UMKM in the second part of this series of ILDs. However, for reasons of efficiency and continuity, a discussion of the various provisions set out under the Draft Bill that address the issue of UMKM was ultimately incorporated into this edition of ILD.