Economics

Indonesia’s Labor Law Sees Stocks Rally as Workers Protest

Government rushed law’s passage in plenary meeting on Monday
About 2 million workers to hold three-day strike against law

Workers transport carts at Tanah Abang market in Jakarta, Indonesia. — Workers transport carts at Tanah Abang market in Jakarta, Indonesia.
Photographer: Dimas Ardian/Bloomberg

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By Grace Sihombing and Arys Aditya

October 5, 2020 at 5:48 AM EDT

Updated on

October 6, 2020 at 1:24 AM EDT

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Indonesia’s new law, aimed to simplify labor and investment rules, has been met with a rally in local markets and concern from global investors as well as labor unions.

Parliament agreed to pass the omnibus bill on jobs creation in a plenary session Monday, sending the rupiah and stocks to gain as much as 1.3% the next day. The vote was brought forward from Oct. 8, preempting a three-day strike by about 2 million workers who sought to reject it. The strike will still happen from Tuesday.