Indonesia passes job decree into law to streamline business rules despite criticism

Indonesia's Parliament on Tuesday voted to pass President Joko Widodo's emergency decree to cement rules on investment and jobs in South-east Asia's biggest economy, replacing a 2020 law that has been ruled partially unconstitutional.

The law, which revises more than 70 other laws, has been praised by foreign investors for streamlining business rules but also criticised by labour and green groups as being too pro-business.

The changes under the 2020 law include cuts in severance benefits, new minimum wage limits and removal of some mandatory paid leave, as well as the loosening of rules on environmental inspections for investment.

In 2021, the Constitutional Court ruled the passage of the law was flawed due to inadequate public consultation and ordered a renewed debate process in Parliament within two years.