JAKARTA (Reuters) – Indonesia’s parliament is set to vote within weeks on a flagship job creation bill to improve the investment climate and streamline business rules in Southeast Asia’s biggest economy.
Some of its provisions have been controversial, especially regarding the environment and changes proposed to the 2003 labour law which trade unions view as being too pro-business.
Here are key elements of the bill agreed by parliament’s legislation committee, according to government presentations and lawmakers. They still need approval from ministers and further approval by parliament.
Lawmakers approved a cut in mandatory severance benefits paid by employers, to 23 times monthly wages from 32 times, with the government funding the shortfall.The original proposal was for a cut to 19 times, and for workers losing employment to receive state insurance and skills training.
Minimum wage limits at city and district levels stay, with annual rises tied to economic