Jakarta –
Omnibus Law Cipta Kerja has been approved by the House of Representatives (DPR). Rejection occurred in various regions in Indonesia.
A number of foreign financial institutions are analyzing and predicting the impact of the enactment of the World Sweep Law.
For example, Morgan Stanley’s research states that this law is expected to strengthen monetary policy, inflation, accommodative fiscal policy and accelerate infrastructure spending.
In the report, it was also stated that the Job Creation Law was intended so that more foreign capital could enter Indonesia. Then this Act is to cut the bureaucracy that was previously complicated and inefficient.
Morgan Stanley also said that with the Omnibus Law, technology startup players will develop more rapidly. This condition will encourage technology transfer in digital terms.
Quoting CNBC Indonesia Head of Asi Pacific Sovereigns Fitch Ratings Stephen Schwartz said the Omnibus Law Law is a good catalyst to encourage investment in Indonesia.
Although investors still need time to see the progress of the implementation of this law, there will be many relocation of factories from China to Indonesia as long as everything goes smoothly.
This law also supports structural reforms that have been a major obstacle to investment in Indonesia.
“The Job Creation Law can have a positive impact on Indonesia, can encourage more foreign direct investment (FDI),” he said, in an interview with CNBC Indonesia, quoted on Friday (9/10/2020).
According to him, the opportunity that can be grabbed by Indonesia is manufacturing. This is due to disruption of factories in China during the COVID-19 crisis.
According to World Bank records, 33 industries have relocated factories from China, 23 to Vietnam and 10 others to countries in Southeast Asia.
Vice President Senior Credit Officer, Corporate Finance Group Moody’s Investors Service Jacintha Poh in her statement said that licensing foreigners to own apartments in Indonesia would be a positive catalyst for property developers.
According to him, it takes time for sales to rise higher, between the time lag for sales and subsequent revenue. In Article 143 of the Omnibus Law, it is stated, “ownership rights to flat units are ownership rights over separate individual flats with joint rights over common shares, common objects, and common land”.
Watch Video “K-Popers Participate in Enlivening, Hashtags Reject World Trending Omnibus Law“
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