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Perppu on Job Creation Government’s Effort to Act Quickly to Overcome Crisis

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By:  Lukman Keenan Adar )*

The issuance of the Job Creation Perppu is a concrete effort carried out by the Government through President Jokowi’s firm decision to act very quickly in overcoming all kinds of crises that occur, both originating from within the country to crises originating from external factors, namely the uncertain conditions that are happening in the world. at the moment.

Last December 30, 2020, the Government of the Republic of Indonesia, through President Joko Widodo, has officially issued Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation. In this publication, President Jokowi has spoken directly with the Chairperson of the People’s Representative Council (DPR RI), Puan Maharani to confirm this Perppu on Job Creation.

In this regard, the Coordinating Minister (Menko) for the Economy, Airlangga Hartarto stated that the formation of Perppu Number 2 of 2022 was very much guided by statutory regulations and also the Constitutional Court (MK) Decision Number 38/PUU7/2009.

Not only is it in accordance with the guidelines, but the formation of the Job Creation Perppu is also considered urgent because the condition of the Indonesian economy is said to be facing various forms of threats such as a global recession and also conditions of uncertainty which are still very high until now.

Therefore, with all these very urgent conditions, the Government immediately accelerated efforts to anticipate all global conditions, be it in the economic sector, including as an effort so that the Indonesian nation is able to face the threat of global recession, the threat of increasing inflation to the threat of stagflation.

To date, as many as 30 countries have asked for assistance from the International Monetary Fund (IMF) because they are trapped in difficult economic conditions and have no other way out. Of course, President Jokowi does not want this to happen to the country, so he immediately accelerated the issuance of the Job Creation Perppu because it cannot be denied that the threat of a crisis for developing countries is very real.

Not only that, world geopolitical conflicts involving Russia and Ukraine are still not completely resolved and exacerbate uncertain conditions in the world. So it is indeed very important for the government to be able to face all these threats, including because several countries have experienced food crises, energy crises, financial crises to climate change.

In addition, the existence of the Job Creation Perppu is indeed very important for Indonesia because the government also has a responsibility to be able to return the State Budget (APBN) deficit to a level below 3 percent in 2023. In addition, the government must also be able to pursue the target of investment realization of IDR 1,400 trillion by 2023.

Of course, with all the reasons and also the urgency that has occurred, it is indeed very important for the government to be able to move very quickly, namely to issue a Job Creation Perppu which also functions to provide legal certainty so that with the issuance of Perppu Number 2 of 2022, the legal certainty that was previously was empty can be filled.

For your information, in November 2021, the Constitutional Court decided that the formation of the Job Creation Law had a conditional unconstitutional status as long as the law was not corrected or revised immediately. The deadline given by the Constitutional Court to the government to immediately revise the Job Creation Law itself is actually still until November 2023, but with all the reasons for the urgency that has been mentioned, there is no reason to delay the issuance of the Perppu on Job Creation.

Meanwhile, the Perppu itself is a type of Government Regulation (PP), which has the type of Act as a Substitute and is formed in the event of a compelling crisis. Perppu itself is a type of legislation that has been mentioned in the 1945 Constitution of the Republic of Indonesia, namely in Article 22 which states that the President has the right to stipulate it when facing a crisis.

Perppu itself is actually a government regulation that acts as a law or in other words, a Perppu is a government regulation that is given the same authority as a law.

Perppu is needed in order to overcome various kinds of crises that occur internally and externally, such as global economic uncertainty to geopolitical conflicts, the threat of recession, inflation, to world stagflation. The government acted very quickly to be able to overcome and anticipate and be prepared for all forms of these challenges, namely by issuing the Perppu Cipta Kerja.

)* The author is a contributor to Persada Institute 

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