Jokowi signs Perppu job creation, replaces conditionally unconstitutional laws

JAKARTA, KOMPAS.com – President Joko Widodo signed the Government Regulation Substituting Law (Perppu) Number 2 of 2022 on Job Creation on Friday (30/12/2022).

This Perppu replaces the law (UU) n. 11 of 2020 relating to the creation of jobs, conditionally declared unconstitutional by Constitutional Court (MK).

“With the issue of Perppu number 2 of 2022, the legal certainty can hopefully be filled and this will be the implementation of the decision of the Constitutional Court,” Coordinating Minister of Economy Airlangga Hartarto said at a press conference at the Presidential Palace Complex, Jakarta, Friday.

Read also: As for the Constitutional Court’s mandate to improve the job creation law, the government is still discussing it

Airlangga said, affirmed the decision of the Constitutional Court Job creation law The conditional unconstitutionality has influenced the behavior of the domestic and foreign business world while awaiting the continuation of the law.

Therefore, the government believes that legal certainty from the law is needed because the government has stipulated that next year’s budget deficit cannot be more than 3 percent and has an investment target of IDR 1.4 trillion.

He added, Job creation Perppu also released urgently because Indonesia and all countries are facing food, energy, financial and climate change related crises.

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“Consideration is an urgent need, the government must accelerate the anticipation of good global conditions related to the economy,” said Airlangga.

He said Indonesia was now facing the potential for a global recession, rising inflation and the threat of stagflation. Furthermore, the number of countries depending on the IMF is said to be on the rise.

“So this crisis condition for emerging developing country become very real, and also related to geopolitics regarding Ukraine-Russia and other conflicts that have not yet been resolved,” Airlangga said.

The MK is known to have earlier declared the Job Creation Act unconstitutional in November 2021.

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In the Court’s opinion, the merger method or omnibus law in the Job Creation Act is not clear whether this method constitutes making a new law or revising it.

The Court also considered that, in its formation, the Job Creation Act did not respect the principle of openness to the public, even though it had held several meetings with different parties.

However, the assembly was deemed to have not reached the substance stage of the law. Similarly, the draft law on job creation is also considered by the Court not to be easily accessible to the public.

Thus, the Court held that the Job Creation Act was conditionally unconstitutional as long as no amendments were made within two years of reading the decision.

Read also: Demonstrates in front of DPR Demands job creation law to be revoked, workers issue threats to stop working

If no changes are made within two years, the Job Creation Act will automatically be declared definitively conditionally unconstitutional.

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