Job Creation Perpu Passed as Law; Govt Remarks Global Uncertainty
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21 March 2023 16:11 WIB
TEMPO.CO, Jakarta - The Indonesian House of Representatives (DPR) has officially passed the government regulation in lieu of law (Perpu) No.2/2022 on Job Creation in a plenary session on Tuesday, March 21, 2023. Coordinating Minister for Economic Affairs Airlangga Hartarto insisted that passing the Perppu to become a Law is meant to provide legal certainty amidst global dynamics.
The Minister also asserted that the Job Creation Law will accommodate investment and help move the domestic MSMEs industry through flexible policies in the labor sector.
"And surely, the passing of this law there will be followed by many revisions to numerous rules and government regulations," said Airlangga at the Senayan Parliamentary complex on Tuesday, March 21, 2023
Democrat and PKS Officially Reject
Prior to the law’s passing, the Job Creation bill was rejected by the Democratic Party and Prosperous Justice Party (PKS) factions for lack of relevance, as the law had been issued on December 30, 2022, and has since failed to be passed in previous plenary periods.
In response to the rejections, Minister Airlangga highlighted the urgency of global uncertainty that is represented through the Russian-Ukraine conflicts, climate change, and the El Nino and El Nina storms.
"There are several real issues and some countries are unsure of how to respond to this. This poses a crucial role for Indonesia as it can cause [investors to flee]," said Airlangga.
Constitutional Court Orders Job Creation Revision
Back on November 25, 2021, the Constitutional Court (MK) rendered a decision stating that Law No.11/2020 on Job Creation is conditionally unconstitutional and ordered the government to make amendments and adjustments within a two-year deadline.
In its decision, MK declared the Job Creation law unconstitutional based on the regulations on how a law is drafted and enacted. After its initial introduction on December 30, 2022, the Job Creation regulation in lieu of law received protests from a large number of people as many accuse both legislators and the government of failing to involve the public in drafting the news regulation.
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