In a significant legislative shift, the Indonesian House of Representatives has ratified the 2025 amendments to the Omnibus Law on Job Creation. This move aims to further streamline foreign investment processes while introducing stricter compliance measures for environmental impact assessments (AMDAL).
Key Changes for Foreign Investors (PMA)
The most notable change is the revision of the Positive Investment List. Several sectors previously closed or restricted to foreign ownership have now been fully opened, particularly in the renewable energy and digital infrastructure sectors. However, this liberalization comes with increased scrutiny on beneficial ownership reporting. Companies are now required to update their structure to the Ministry of Law and Human Rights within 30 days of any amendment.
Labor Regulation Updates
For employers, the new amendments clarify the calculation of severance pay and introduce flexible working hour arrangements to accommodate the growing gig economy. Multinational corporations operating in Indonesia must review their Company Regulations (Peraturan Perusahaan) to ensure alignment with these new statutory requirements.
At Aliansi Pro, we recommend conducting a comprehensive legal audit of your current employment contracts and corporate governance structures to mitigate any transitional risks associated with these regulatory updates. Our legal team is prepared to assist with the necessary adjustments to your OSS (Online Single Submission) profile.
