According to material on the bill released on Friday, the government will require minimum wages to take into account economic conditions of different regions. The bill will also simplify permit processes covering 15 sectors including manufacturing, agriculture, energy and mining, as well as environmental permits and construction, the material showed.
The government will remove a "negative investment list" that restricts foreign ownership in some areas, though it will continue to set limits in certain industries, an official said.
David Sumual, chief economist at Indonesia's Bank Central Asia, said passing the omnibus law was "a litmus test" for President Widodo, who is supported by parties controlling about 75 percent of the seats in parliament.
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Helmi Arman, an analyst at Citi, said in a note that to ensure a boost to lagging foreign direct investment "there must also be deregulation to ease non-tariff measures such as import restrictions and local-content requirements."
Muhammad Rusdi of the Confederation of Indonesian Workers' Union (KSPI) warned at the weekend that he would not rule out the possibility of workers going on strike over the bill.
But Sufmi Dasco Ahmad, deputy speaker of parliament, pledged full consultation once the bill was submitted.
"The bill belongs to workers, business people, and all of us," he told reporters.
