New Decree on job creation in Indonesia
2022.12.29 23:54
New Decree on job creation in Indonesia
Budrigannews.com – His chief economics minister said on Friday that Indonesia’s President Joko Widodo has signed an emergency regulation to replace the controversial job creation law. In 2021, the Constitutional Court ruled that the law was flawed.
Airlangga Hartarto stated that the move was made to achieve the government’s investment goal and ensure legal certainty amid global tension.
The Protected Court last year decided that the entry of the president’s vaunted Positions Creation Regulation was imperfect because of deficient public interviews, and requested legislators to restart the cycle in two years or less. Otherwise, the law would be deemed unconstitutional.
The so-called “omnibus” law that Indonesia passed in 2020 changed more than 70 other laws. Foreign investors praised the law for streamlining business rules in Southeast Asia’s largest economy, which is known for having a lot of bureaucracy.
However, it also sparked nationwide protests from students, workers, and environmental groups, who claimed that it undermined environmental and labor protections.
“Constitutionally, the emergency regulation will replace the Jobs Creation Law,” Airlangga stated in reference to the court’s decision.
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According to Chief Security Minister Mahfud MD, the government chose an emergency regulation because the standard procedure for complying with the court’s decision would be too time-consuming. He stated that in anticipation of the effects of a global economic downturn and a potential food crisis next year, the government needed to decide on “strategic measures.”
In order to comply with the court’s decision, lawmakers told Reuters earlier this year that they planned to redo the legislative process.
