Despite a potential conflict with existing regulations, most factions at the House of Representatives on Thursday approved an emergency law on a free trade zone (FTZ). Eight of the 10 factions in the House, including the Golkar Party faction which holds the most seats in the body, decided to side with the government, paving the way for the planned establishment of the country's second FTZ area, covering Batam, Bintan and Karimun islands. Sabang is Indonesia's first free trade zone.

The recently issued government regulation on franchising will hurt the industry with its difficult and sometimes unreasonable requirements, forcing some business players to look for "legal loopholes", an association says.