The government expects the bill to cut red tape and attract more investment to

push the country’s sluggish economic growth. Indonesia’s economy grew by

5.02 percent last year, the lowest rate since 2015, as investment and exports
cooled.1

Businesses would be required to provide a bonus equal to one month of salary

to those who have worked for less than three years at the company, a two-
month salary bonus to those who have worked between three and six years, a
three-month salary to those who have worked between six and nine years, a
four-month salary to those who have worked between nine and 12 years and a
five-month salary for workers with a tenure of more than 12 years. The bill caps
the compensation for laid-off workers at eight months of salary for 21 years of
service from 10 months of salary for 24 years of service. 2 Small and medium
businesses are excepted form the obligation in the bill.

1
https://www.thejakartapost.com/news/2020/02/12/government-sends-omnibus-bill-on-job-creation-to-
house.html
2
https://www.thejakartapost.com/news/2020/02/13/what-is-sweetener-savory-provision-introduced-in-
omnibus-jobs-bill.html