Jakarta – The issuance of the Perppu on Job Creation, which was carried out by the government some time ago, is considered not something sudden and instantaneous, because this policy is very capable of responding to various kinds of economic challenges to filling the legal vacuum due to the suspension of the previous Job Creation Law.
Acting Director General of Laws and Regulations of the Ministry of Law and Human Rights, Dhahana Putra stated that the issuance of Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation was not a sudden policy.
The reason is, this is indeed in accordance with the mandate of the Constitutional Court (MK), which gave the government a 2-year deadline to make improvements to the previous Job Creation Law which was considered conditionally unconstitutional.
“Suddenly no, because according to the Constitutional Court regulations that the government is given 2 years from the time the Constitutional Justice pronounces it, namely November 25, 2021,” he said.
Furthermore, Dhahana Putra also added that the issuance of the Job Creation Perppu was accelerated because Indonesia is currently in a precarious and threatened situation due to an uncertain global economy.
“In the context of global economic growth, there is a negative trend, many countries have adopted a policy. For example, the IMF projects that 2.7% global economic growth will be a problem. America has provided economic protection, even China has indicated that there is 1%. Indonesia is faced with 6% but with the current conditions it will be threatened,” he explained.
He firmly stated that in fact the issuance of the Job Creation Perppu which was signed by President Jokowi on December 30, 2022 was very helpful in implementing national economic growth.
“So the presence of this Perppu is very helpful in implementing Indonesia’s economic growth in facing uncertain global economic growth,” he explained.
Dhahana also stated that the President was indeed given authority, so he has the right to make a Perppu in accordance with what is contained in the 1945 Constitution of the Republic of Indonesia Article 22 paragraph (1).
It says, that as long as Indonesia is in a precarious condition, the President has the authority to issue a Perppu as a replacement for the existing law to resolve this crisis as soon as possible.
“Law 11 of 2020 is still on process, we can see that the various achievements are also significant in terms of increasing investment and also in terms of economic stability. Of course, when we are faced with the current conditions, and the government is given 2 years to prepare a regulation, the President, based on Article 22 paragraph (1), is given the authority to issue a Perppu, but there are criteria according to the decision of the Constitutional Court. So the President doesn’t necessarily issue a Perppu, but there is also a parameter based on the Constitutional Court’s decision,” he said.
Apart from that, the urgency of issuing the Job Creation Perppu which was ratified by the Government was also able to answer the existence of a legal need resulting in a legal vacuum due to restrictions on the previous Job Creation Law.
“With uncertain global economic challenges, this will be a problem, even now the Government is facing restrictions on the application of the Job Creation Law for 2 years. With this very short duration, the government needs to take steps to make the Perppu earlier, first is the need for law, second is there is a legal vacuum, third is there is something extraordinary about its formation,” he concluded.