Environmental concerns, protests may discourage foreign investment: Moody’s

first_imgThe omnibus bill on job creation, which passed into law on Monday, earlier than previously scheduled on Thursday, has sparked widespread protests and labor strikes nationwide due to concerns that the law will undermine labor rights and weaken environmental protections.Activists and observers have also raised concerns over the law’s deliberations, which they said lacked transparency and public input.“Without offsetting benefits, weaker protections for a large and growing working class could spark opposition from various political and social interest groups, with counterbalancing effects on labor productivity over the near term,” Moody’s said.The government has been struggling to revive the economy, which has been hit hard by uncertainty over the pandemic. Indonesia’s gross domestic product shrank 5.32 percent in the second quarter as household spending and investment contracted 5.51 percent and 8.61 percent respectively. Indonesia’s Job Creation Law may facilitate investment and help revive the economy, but relaxed environmental regulation and widespread protests by labor unions could discourage foreign investors and limit the law’s benefits, Moody’s Investor Service has said.The passage of the omnibus bill is expected to facilitate both domestic and foreign investment and help revive economic growth, Moody’s wrote in a research note on Thursday. Risks, however, loom for the Indonesian economy.“Relaxation of reporting for businesses that have required an environmental impact analysis and easier restrictions on clearing peatland for oil palm plantations could particularly deter foreign investment” that is increasingly focused on environmental-, social- and governance-driven goals and responsible commodity production, Moody’s analysts said. The government projects this year’s full economy to shrink 0.6 to 1.7 percent, marking the first annual economic contraction in two decades.Asian Development Bank (ADB) country director for Indonesia Winfried Wicklein said the omnibus law, along with other policy and regulatory measures, would help the economy to recover from the pandemic and boost its economic outlook.“ADB is looking forward to supporting the government of Indonesia toward achieving more equitable labor market outcomes and addressing concerns on environmental sustainability,” he said in a statement on Thursday.Under the law, environmental permits are now merged with business permits with only high-risk industries required to submit an environmental analysis. The law will also raise fines for environmental damages, with those who burn forests potentially subject to 15 years’ imprisonment and a Rp 7.5 billion fine.The law also returns the authority over land use and permits to the central government from regional administrations and sets up a one-map policy to resolve the issue of overlapping land claims.In addition, it cuts severance benefits paid by employers to laid-off workers from 32 times their monthly salary to 19 times.The JKP scheme will be managed by the Workers Social Security Agency (BPJS Ketenagakerjaan). Article 46E of the bill stipulates that the source of funds for the JKP scheme, which currently has yet to be established under the country’s social security system, will come from the government, workers’ premiums and BPJS Ketenagakerjaan operational funds.Speaking in a press briefing on Thursday, Investment Coordinating Board (BKPM) chief Bahlil Lahadalia said the government would speed up the implementation of the law, adding that the widespread protests did not deter potential investors from coming into the country.“As many as 153 companies from Japan, China and the United States are planning relocation to Indonesia following the passage of the omnibus bill,” he claimed. “They wanted to invest in infrastructure, manufacturing, mining, energy and tourism, among other sectors.”The BKPM chief defended the law, saying “it would be able to create jobs that will benefit workers and will not undermine environmental rules”.Topics :last_img read more

March Madness 2019: 3 takeaways from Duke’s ACC Tournament championship win over Florida State

first_img March Madness 2019: North Carolina’s Cameron Johnson says loss to Duke ‘will hurt for a little bit’ Here are three takeaways from the ACC championship game:Blue Devils have a No. 1 seed locked upThere is no longer any doubt: The Blue Devils will be a No. 1 seed in the NCAA Tournament after the win over Florida State.Duke was on track to earn a top spot in the tournament for much of the season but lost three of its final six regular season games after Williamson went down with a sprained knee.Williamson, however, returned for the ACC Tournament and dominated during the Blue Devils’ conference title run, tallying 81 total points in his three appearances.The Blue Devils have been the best team in the country with Williamson on the floor and they’ll be rewarded with a prime position in the bracket on Selection Sunday. They could even be slotted in as the top overall team in the tournament.North Carolina, Virginia, Tennessee, Michigan State and Gonzaga are also in contention for a No. 1 seed.FSU managed to expose the Blue Devils’ biggest weaknessFlorida State dared Duke to shoot from the outside.The Seminoles helped off almost every opposing player, including Jones, Jordan Goldwire and Javin DeLaurier. They used the extra defenders to pack the paint in an attempt to limit driving lanes for Williamson and Barrett.That strategy worked, in one sense, as Duke connected on one of its nine shots from behind the arc in the first half and hit just 14.3 percent of its 3-pointers in the game.Duke, however, relied less on its outside shooting in the second half. It attacked the rim and pushed the pace, which negated its struggles from deep.The Blue Devils entered the game shooting just 30.5 percent from 3-point range this season.Duke’s future opponents may look to replicate parts of Florida State’s defensive game plan in the NCAA Tournament.Duke can win with its defenseDuke’s defense carried it to the victory Saturday. NC Central coach: Us playing Zion Williamson would be like my 6-year-old son playing me Zion Williamson registered a game-high 21 points and five rebounds to lead Duke to the victory. RJ Barrett chipped in 17 points and Tre Jones added 18.V̶ ̶I̶ ̶S̶ ̶I̶ ̶O̶ ̶N̶V I Z I O Npic.twitter.com/DPlA623Rox— NCAA March Madness (@marchmadness) March 17, 2019Mfiondu Kabengele scored 14 points off the bench for Florida State in the losing effort. Related Newscenter_img The Blue Devils will enter the NCAA Tournament with a ton of momentum.Duke took control in the second half and held on for a 73-63 win over Florida State in the ACC Tournament championship game Friday. The victory gave the Blue Devils their second postseason title in the last three seasons. The Blue Devils had no momentum offensively in the game’s opening 20 minutes. So, they picked up their intensity on the other end of the floor after halftime. They pressured the ball and locked down on shooters, which then allowed them to get out in transition off of turnovers and missed shots.Duke held Florida State to 30.6 percent shooting and forced 12 turnovers. It wasn’t a pretty victory, yet it’s one that should give the Blue Devils confidence moving forward as they learned they can win despite not having their A game.last_img read more