New Indonesian Law Is Boosting Asia’s Worst-Performing Currency

(Bloomberg) — The Indonesian rupiah has languished at the bottom of Asian currency rankings for most of the year but a recent overhaul of the nation’s investment law may help revive its fortunes.

The rupiah rose about 1% against the dollar last week after Indonesia approved its first omnibus law aimed at cutting red tape to boost investments and create jobs. That’s after a loss of 4.1% in the quarter ended September amid concern over Bank Indonesia’s independence, debt monetization and an economy poised for its first annual contraction since 1998.

“The passing of the omnibus labor law is good news for the rupiah as it’s a long-term structural reform that will improve the growth prospects of the economy,” said David Forrester, FX strategist at Credit Agricole CIB in Hong Kong. “We forecast USD/IDR to reach 14,500 by year end.”



graphical user interface, chart: Rupiah's 200-DMA continues to limit currency's gains


© Bloomberg
Rupiah’s 200-DMA continues to limit currency’s gains

The

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Indonesian Police Nab Thousands Protesting New Law, Antara Says

(Bloomberg) — Indonesia’s police detained thousands of protesters against the newly passed omnibus law, according to state news agency Antara, amid concern the gatherings could worsen the virus outbreak.

Students and workers held strikes and demonstrations across the country this week to reject the new law aimed at cutting red tape to boost investments, saying the bill would erode labor rights and environmental protection. President Joko Widodo defended the bill, saying the protests were fueled by “disinformation.”



a group of people standing around a fire: Indonesians Strike And Protest New Job Creation Law


© Photographer: Ed Wray/Getty Images AsiaPac
Indonesians Strike And Protest New Job Creation Law

Protestors throw rocks at a burning bus station in the city center in Jakarta, Indonesia on Oct. 8.

Photographer: Ed Wray/Getty Images

Here’s What to Know About Indonesia’s Investment Law Overhaul

Of the 3,862 people detained, 145 tested positive for the coronavirus, Antara reported, citing police spokesman Argo Yuwono.

The world’s fourth-most populous country is still struggling to contain

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Clashes erupt during demonstrations against new Indonesian jobs law

JAKARTA — Police and demonstrators clashed in the Indonesian capital on Thursday on the third day of protests and strikes against a polarising new jobs law passed in Southeast Asia’s largest economy earlier this week.

Hundreds of demonstrators gathered near the presidential palace in central Jakarta, shouting and throwing stones. Police fired tear gas and water cannon in an attempt to disperse the crowd, Reuters witnesses said.

The “omnibus” jobs creation bill, passed into law on Monday, has seen thousands of people across the world’s fourth-most populous nation take to the streets in protest against legislation they say undermines labour rights and weakens environmental protections.

“This is our struggle for our children and grandchildren, and our future generations… If it’s like this our well-being will decrease, and we will lack job certainty,” Maulana Syarif, 45, who has worked at Astra Honda motors for 25 years, told Reuters in Jakarta.

Demonstrators
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Indonesian Muslim and union groups to fight new jobs law in court

By Angie Teo and Tabita Diela

JAKARTA (Reuters) – Indonesian President Joko Widodo came under increasing pressure to repeal his new controversial labour law on Friday with union and Muslim groups preparing to challege it in court and some regional leaders publicly opposing the legislation.

The KSPI labour group, among the organisers of three-day national strikes ending Thursday, is preparing to lodge a case against the new law in the Constitutional Court, the group’s president Said Iqbal said in a statement.

Nahdlatul Ulama, Indonesia’s biggest Muslim group with millions of followers, would also challenge the law in the court, it said in its official Twitter account.

The “omnibus” jobs creation bill, passed into law on Monday, has seen thousands of people across the world’s fourth-most populous nation take to the streets in protest, saying it undermines labour rights and weakens environmental protections.

Clashes erupted in some cities on Thursday, including

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Clashes erupt in protests against new Indonesian jobs law

By Agustinus Beo Da Costa and Willy Kurniawan

JAKARTA (Reuters) – Police and demonstrators clashed in the Indonesian capital Jakarta on Thursday on the third day of protests and labour strikes against a polarising new jobs law passed in Southeast Asia’s largest economy earlier this week.

Hundreds of demonstrators gathered near the presidential palace in central Jakarta, shouting and throwing stones. Police responded by firing tear gas and water cannon in an attempt to disperse the crowd, Reuters witnesses said.

The “omnibus” jobs creation bill, passed into law on Monday, has seen thousands of people across the world’s fourth-most populous nation take to the streets in protest against legislation they say undermines labour rights and weakens environmental protections.

“We ask that the law be repealed immediately,” Maulana Syarif, 45, who has worked at Astra Honda motors for 25 years, told Reuters in Jakarta. “This is our struggle for our children

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Indonesian police fire water cannons at protesters rallying against jobs law

Indonesian police used water cannons and tear gas on Tuesday to disperse protesters rallying against a new jobs law in two cities on the island of Java, according to a police spokesman and media reports.



a group of people standing in front of a crowd: Workers block a road during a strike against a government omnibus bill on job creation which they believe will deprive workers of their rights, in Bandung on October 6, 2020.


© TIMUR MATAHARI/AFP/Getty Images
Workers block a road during a strike against a government omnibus bill on job creation which they believe will deprive workers of their rights, in Bandung on October 6, 2020.

Earlier, thousands of workers and students had protested peacefully across the archipelago at the start of a three-day national strike against President Joko Widodo’s “omnibus” Job Creation bill, which was passed into law on Monday.

Elshinta radio posted a video on its official Twitter account showing police late in the evening using water cannons against hundreds of protesters in the city of Serang in Banten province, about 70 km (43.5 miles) to the west of Jakarta.

Banten police spokesman Edy

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Thousands of students, workers protest new Indonesian law

BANDUNG, Indonesia (AP) — Thousands of Indonesian students and workers protested on Wednesday against a new law they say will cripple labor rights and harm the environment, with some clashing with police.



A labor demonstrator raises his fists in support of the protest against a controversial omnibus bill on job creation in Tangerang, Indonesia, Wednesday, Oct. 7, 2020. Thousands of students and laborers protested on Wednesday against the new law they say cripples labor rights and harms the environment. (AP Photo/Dita Alangkara)


© Provided by Associated Press
A labor demonstrator raises his fists in support of the protest against a controversial omnibus bill on job creation in Tangerang, Indonesia, Wednesday, Oct. 7, 2020. Thousands of students and laborers protested on Wednesday against the new law they say cripples labor rights and harms the environment. (AP Photo/Dita Alangkara)

Authorities in Bandung, the capital of West Java province, blocked streets leading to the local parliament building and city hall, where clashes between rock-throwing students and riot police broke out late Tuesday when police tried to disperse the protesters.



Indonesian workers march during a protest against a controversial omnibus bill on job creation, in Tangerang, Indonesia, Wednesday, Oct. 7, 2020. Thousands of Indonesian students and laborers protested on Wednesday against the new law they say cripples labor rights and harms the environment. (AP Photo/Dita Alangkara)


© Provided by Associated Press
Indonesian workers march during a protest against a controversial omnibus bill on job creation, in Tangerang, Indonesia, Wednesday, Oct.

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Indonesian protesters target government’s flagship jobs bill

JAKARTA (Reuters) – Indonesian activists and workers held rallies across the country on Thursday to protest against President Joko Widodo’s flagship Job Creation bill, as parliament moves closer to wrapping up debate on a bill that critics say is too pro-business.

However, the size of the rally in Jakarta was far smaller than organisers had planned, with only a few dozen attending the protest outside parliament amid coronavirus restrictions.

The president, whose coalition controls 74% of parliamentary seats, has asked lawmakers to finish deliberations by this month or early October.

The so-called “omnibus” bill aims to revise over 70 laws to improve the investment climate in a single piece of legislation.

But it has been attacked by unions because it aims to cut severance benefits and revise rules on outsourcing, among other proposals. Meanwhile, green groups say it could lead to ecological disasters by relaxing requirements for environmental studies.

Government

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