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Indonesia faces another chapter of jobs law shenanigans
Public discourse has again erupted in relation to the Job Creation Law, this time over a regulation in lieu of law on job creation that was passed just two days before the turn of the year.
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A protester runs toward riot police on motorcycles, during a demonstration in Jakarta on Oct. 13, 2020 protesting the Job Creation Law’s passage. (JP/Seto Wardhana)
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he controversial Job Creation Law has now been revoked with yet another controversial regulation in lieu of law (Perppu) on job creation. The revocation is a consequence of what was decided last year.
Nov. 4, 2021 marked the day that the Constitutional Court (MK) declared Law No. 11/2020 on Job Creation “contrary” to the 1945 Constitution. Nevertheless, the law is still valid until it is revised in line with the time limit of within two years since the court’s decision was issued.
While critics suggest the government to revise the law with an entirely new participatory and inclusive law, the administration of Joko “Jokowi” Widodo decided to wrap up 2022 by passing the Perppu on job creation, which the President signed on Dec. 30, 2022.
It was issued to address the Constitutional Court decision in November 2021, and a Perppu’s regulatory structure allows the government to “bypass” the conventional lawmaking process.
Nevertheless, comments are piling up, with most pointing out how the government has again tried to “hack” the legislative system to maintain the applicability of the contentious Job Creation Law.
Coordinating Economic Minister Airlangga Hartarto told a press conference at the State Palace on Dec. 30 that the Perppu was issued to anticipate the “urgency” of the global economic slowdown, recession, growing inflation and the threat of stagflation.
Public discourse has centered around Airlangga's reference to the government’s interpretation of “urgency” as the basis for passing the regulation. As it is known, the pandemic restrictions have now been eased, with the Jokowi administration revoking the Public Activity Restrictions (PPKM) imposed in response to the COVID-19 pandemic.
