Jokowi Passes Perpu on Job Creation

TEMPO.CO, Jakarta - President Joko "Jokowi" Widodo has issued Government Regulation in Lieu of Law No. 2 of 2022 concerning job creation signed today, December 30, 2022. The government claimed that this executive order minded prevailing laws and the Constitutional Court’s ruling No. 38/PUU7/2009.

“It’s due to an urgent need,” said Coordinating Minister for the Economy Airlangga Hartarto in a press conference at the State Palace, Friday, December 30, 2022.

He said the government needed to accelerate anticipation of global economic conditions. Indonesia is facing a global recession, rising inflation, and the threat of stagflation. Moreover, a number of developing countries have become ‘patients’ of the IMF. “This crisis condition is very real for emerging developing countries,” Airlangga added.

On November 25, 2021, the Constitutional Court ruled that the Job Creation Law was conditionally unconstitutional and ordered the government to amend it within two years.

Airlangga pointed out that the Constitutional Court's ruling greatly influenced the business world, both at home and abroad. So with the issuance of this Perpu, he hoped that legal certainty can be filled. “Almost all of them (people in the business sector) are waiting for the continuation of the Job Creation Law,” he said.

Airlangga also confirmed that President Jokowi had spoken with the House of Representatives (DPR) Speaker Puan Maharani. “DPR Speaker has been informed about the Perpu on Job Creation,” he claimed.

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