New investment from South Korea to create jobs in Indonesia
- Shawn Liew
- Topics: Employment Law, Home Page - News, Indonesia, News, Restructuring
A raft of new investments from South Korea is expected to create thousands of jobs in Indonesia, Foreign Minister Retno Marsudi has announced.
These include South Korean glass manufacturer investing up Rp 5.1 trillion (US$342.9 million) in a deal that can help employ up to 1,300 Indonesian workers.
PT Sejin Fashion Indonesia, a subsidiary of South Korean footwear manufacturer Parkland, plans to relocate its production base from China to Indonesia, which is likely to create 4,000 jobs for Indonesians.
Overall, a number of foreign companies have confirmed plans to relocate their production facilities from China to Indonesia, which is predicted to bring US$850 million in investments and employ up to 30,000 Indonesian workers.
READ: Indonesia looks to boost job creation with new Bill
The Indonesia government is also expected to push through a new job creation Bill that is said to make the country more investor friendly.
The Bill, said the government, will make it more appealing for foreign companies to create jobs with stipulations such as allowing employers to hire and fire with lower severance pay and benefits, compared with current labour laws.
