Law No. 11 of 2020 on Job Creation (Omnibus Cipta Kerja)
Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja
What this regulation does
Plain-English summary of the regulation's substance and how it affects PT PMA operations.
UU 11/2020 — known internationally as the Omnibus Job Creation Law — is the most consequential piece of Indonesian investment legislation since UU 25/2007. It amends 79 separate laws in a single instrument to streamline licensing, attract foreign investment, simplify labour rules, and unify spatial planning. For foreign investors the headline change is the launch of OSS-RBA (Online Single Submission, Risk-Based Approach), which replaced the multi-ministry licensing patchwork with a single risk-rated portal: low-risk activities clear with NIB only, medium-risk with NIB + Standard Certificate, high-risk with NIB + Operating License. The law also rewrote large parts of the 2007 Investment Law (including expanding the principle of openness for foreign investment), introduced a national land bank, simplified spatial planning (KKPR replacing the prior site-permit chain), and changed labour rules around severance and outsourcing. Constitutionally challenged and partially revised by UU 6/2023, but the OSS-RBA architecture remains intact. Foundational reference for understanding why every modern Indonesian regulation now flows through OSS.
Key provisions
The articles and operational points most commonly referenced in practice.
- 01
OSS-RBA launch
Risk-Based Approach licensing via Online Single Submission — low/medium-low/medium-high/high risk gates determine what each KBLI needs to operate at scale.
- 02
Investment law amendments
Expanded openness principle for foreign investment; integrated with the BUPM positive-list framework.
- 03
KKPR spatial planning
Replaced prior site-permit system with Konfirmasi Kesesuaian Kegiatan Pemanfaatan Ruang (KKPR) — a faster spatial-planning conformance check.
- 04
Labour reforms
Streamlined severance, modified outsourcing rules, expanded fixed-term contract use cases.
- 05
Sectoral sweeps
Touched 79 separate sectoral laws — environment, agriculture, mining, taxation, halal certification, land — making this the single most-cited statute in modern Indonesian regulatory practice.
Official text
For compliance and dispute work, cite the original Indonesian text directly.
Undang-Undang Nomor 11 Tahun 2020 tentang Cipta Kerja
tentang Cipta Kerja
Need help complying with UU 11/2020 (Job Creation Law)?
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