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Issuance of Job Creation Perppu to Anticipate Economic Upheaval

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Jakarta — The issuance of the Perppu on Job Creation is the government’s effort to anticipate the economic turmoil that will occur in 2023. The issuance of this regulation has fulfilled an element of urgency in accordance with existing regulations.

It is undeniable that the issuance of Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation (Ciptaker) is a very important matter, because the existence of this regulation can be a strategic step in anticipating various critical situations, especially regarding the global economy which also impacts in Indonesian.

The issue of the urgency which then pushed the Government of the Republic of Indonesia (RI) and forced the issuance of the Job Creation Perppu is a discretion that belongs to the President of the Republic of Indonesia, Joko Widodo. This discretion is purely the authority that the President has in order to enable Indonesia to escape from a very threatening and crisis situation.

This is because not a few parties and even institutions in the world predict that 2023 will be a year full of darkness and also full of challenges including many uncertain conditions, some of which are stagflation, recession, and inflation.

Related to this, Gadjah Mada University (UGM) Business Law Expert, Prof. Nindyo Pramono stressed that the anticipatory efforts that had been made by President Jokowi so that Indonesia could be free from the many threats of uncertain conditions in the world by issuing the Job Creation Perppu was a very appropriate step.

Furthermore, Nindyo Pramono added that the precise issuance of Perppu Number 2 of 2022 concerning Job Creation was due to the fact that the regulation was issued even before Indonesia was actually hit by the crisis, so it was a precautionary measure and a precautionary measure from the Government.

Of course, no party would want the dark history to repeat itself like in 1997 to 1998, when Indonesia was hit by a crisis first, then the government issued a rule, but according to the UGM Business Law Expert it was a step indicating that the government was not ready then.

When neither party wanted the chaotic situation to repeat itself like in 1997 to 1998, therefore, since there was an early warning that in 2023 the world would be full of risks and potential threats of a crisis to an economic recession, the government immediately moved very quickly by issuing the Job Creation Perppu.

Not without reason, the article is that the publication of the Perppu Cipta Kerja is able to provide legal certainty in the midst of the legal vacuum that previously occurred because the old Ciptaker Law was declared conditionally unconstitutional by the Constitutional Court (MK) through its decision and required the government to immediately make improvements.

On the same occasion, Nindyo Pramono also added that several Perppu that had been issued by the Government of Indonesia before had apparently not explained the compelling crisis at all, very different from the issuance of Perppu No. 2 of 2022 concerning Job Creation this time.

First, is the issuance of Perppu No. 1 of 1998 concerning Amendments to the Law on Bankruptcy. The Perppu turned out to be born in the midst of a crisis in 1997 and 1998, at which time there was indeed a pressing problem and at that time it was related to the nuances of economic considerations.

At the time, according to Nindyo Pramono, the government had spent up to Rp. 600 trillion in bailout funds, but no one had ever stated unequivocally that the country was in a state of emergency at that time, very different from what is currently happening.

Then the second Perppu ever issued was Number 1 of 2014 which canceled Law number 22 of 2014 concerning regional elections. At that time it was also the same as the formation of the first Perppu, that is, there was absolutely no mention of a compelling crisis. 

Furthermore, the third Perppu namely number 1 of 2004 concerning amendments to Law Number 41 of 1999 and the fourth is Pewrppu No. 1 of 2000 concerning Free Trade Areas.

In fact, different from the previously issued Perppu policies, Nindyo considers that this Perppu on Job Creation is indeed based on a precarious situation and must be resolved immediately, moreover it is very important for the interests of the investment climate, because Indonesia is still lagging behind other ASEAN countries.

Because there are many uncertain situations in the world, and it is not impossible that this will also have an impact on Indonesia, the existence of the Perppu Cipta Kerja is based on the government’s efforts to deal with many precarious situations.

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