Several thousand students and workers protested in Indonesia's capital Jakarta on Tuesday against President Joko Widodo's new jobs law, the latest in a series of rallies opposing legislation that the government says is needed to attract investment.

Hundreds of people gathered near the Presidential Palace in Central Jakarta, on Tuesday, to protest against the 'omnibus' jobs creation bill approved two weeks ago.

The Indonesian Student Executive Board (BEM SI) and an alliance of workers took part in the demonstration.

Protesters set tyres alight and held signs and banners against the government.

The law is aiming to ease business, labour and environmental regulations in order to stimulate the economy. Opponents say this would come at the expense of workers' rights, job security and environment and call on the president Joko Widodo to revoke the legislation.

It's the third demonstration held in Jakarta and elsewhere in Indonesia against the new labour legislation that was passed on October 5.