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Perppu replacing jobs law gets mixed reception
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A protester holds a sign that reads: “Overcome the virus, withdraw the omnibus [law]” outside the House of Representatives in Senayan, Central Jakarta, on Nov. 12, 2020. (JP/Seto Wardhana)
T
he controversial issuance of a government regulation in lieu of law (Perppu) on job creation could have a positive impact on economic activities this year, economists say, as it may act as a catalyst to improve the Indonesian business climate, which will eventually lead to healthier investment growth.
President Joko “Jokowi” Widodo signed Perppu No. 2/2022 on Friday to replace the Job Creation Law that had been declared "conditionally unconstitutional" by the Constitutional Court (MK) late in 2021. The court ordered policymakers to restart the process within two years, or it would be deemed unconstitutional.
However, the issuance of the Perppu has drawn criticism from civil society groups who argue that it deprives the public of meaningful participation in the making of such important legislation.
Piter Abdullah, senior economist and executive director at the Segara Research Institute, said the issuance of such an “emergency regulation” was actually aimed at encouraging investment in the near future.
In 2021, he said, the MK ruled that the passing of the jobs law was flawed due to inadequate public consultations, causing it not to be fully implemented.
“As a result, there are investors’ doubts over the jobs law following the [MK’s] decision. So, this Perppu is meant to dispel these doubts as well as encourage investment," he told The Jakarta Post on Sunday.
Read also: Jokowi assures investors after court ruling on jobs law
