An Excerpt from BBC News:
What does the law do?
In addition to removing red tape, the bill makes significant changes to Indonesia's labour regulations.
It abolishes the sectoral minimum wage, in favour of minimums set by regional governors.
It will reduce severance pay to a maximum of 19 months salary, depending on how long the employee has had the job. Previously the maximum was 32 months pay.
However, a new government fund will provide an additional six months pay to the newly unemployed.
Allowable overtime will be increased to a maximum of four hours in one day and 18 hours a week. Businesses will only be required to give workers one day off a week instead of two.
Restrictions on outsourcing have also been reduced, as have restrictions on the jobs in which expatriates can work.
The law also relaxes environmental standards, only forcing businesses to file an environmental impact analysis if their projects are considered high risk.
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