Indonesia's Omnibus law: A multi-year growth opportunity?

Job creation bill good news for economy and investors

Historically, there has been a high correlation between country reforms and stock market performance. Reforms can occur at many levels and for investors, these can fall into three categories: political, economic and the stockmarket.

One of these taking place is a game-changing reform process in Asia, the Omnibus law, which will ultimately raise the trajectory of economic growth in Indonesia. On 5 October, after eight months of deliberations, Indonesia passed the Omnibus law on job creation. It consists of 175 articles that revise articles from 73 existing laws, including labour reform, tax reform, and investment reform. Implemented regulations need to be issued within three months. We believe this is the most important economic reform package of the Joko Widodo government and it could improve the medium-term grow...