Francisca Christy Rosana, Jakarta – An economist from the Institute for Development of Economics and Finance (Indef), Bhima Yudhistira Adhinegara, argued that President Joko Widodo or Jokowi's decision to sign the Job Creation Law would eventually reduce the quality of investment.
"Will investment from developed countries increase after the Omnibus Law [is enacted]? I have doubts," said Bhima to Tempo on Tuesday, November 3, 2020.
According to Bhima, Jokowi was considered ignoring workers' protests which would affect investor confidence. In fact, to attract investors from developed countries, the government needs to maintain environmental protection and workers' rights, he added.
The passage of the contentious law, at the same time, still sparked public debates as workers deemed several articles would be detrimental to them. The law was also considered legally flawed due to several changes of the document although it has been passed by the DPR.
"The omnibus law is recklessly passed, by this, ignoring the protest that is also voiced by global investors, retailers, and international brands," Bhima said.
The Job Creation Law, Bhima said, would not immediately increase investment in the country as investors would still consider its derivative regulations. As a result, he predicted that investors would be further on a wait-and-see mode for a long time.