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Perppu on Job Creation Solutions to Global Economic Uncertainty

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By : Naomi Leah Christine )*

The issuance of the Job Creation Perppu is a solution as well as a concrete step taken by the Government in an effort to make Indonesia continue to be able to survive in the midst of all the current global economic uncertainties.

The Government of the Republic of Indonesia (RI) continues to make efforts to be able to fix various kinds of fundamental things, especially when facing a very difficult situation, namely global economic conditions due to various kinds of crises that have occurred. Regarding this matter, President Joko Widodo revealed that one of the important fundamental things is to continue to intensify infrastructure development with the aim of boosting Indonesia’s competitiveness in the international world.

Therefore, under Jokowi’s leadership, the government continues to consistently improve infrastructure. According to him, infrastructure itself is a foundation for Indonesia, even for the medium to long term. For this reason, according to him, it is very important to reform and improve infrastructure because without adequate infrastructure, it will be difficult for Indonesia to compete with other countries if connectivity is not well owned.

However, it is not only infrastructure that is important, but also legal certainty which cannot be underestimated. As a result, the Government immediately issued a government regulation in lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation.

Jokowi stated that the issuance of the Perppu was very useful in being able to provide legal certainty to both domestic and foreign investors. Not without reason, the article is that until now the world is being faced with the threat of global economic uncertainty.

Moreover, according to the seventh Indonesian President, he revealed that the Indonesian economy in 2023 will indeed depend on investment and export activities. The world is currently not doing well because there are many threats to the risk of economic uncertainty.

Responding to these many threats, the Government immediately issued a Job Creation Perppu because it would be very effective in providing legal certainty to a legal vacuum that supports all investment activities, so that investors are more enthusiastic about making their investments in the country.

Furthermore, it turns out that the issuance of the Job Creation Perppu has absolutely nothing to do with the repeal of the PPKM policy which was previously carried out by the Government. This is because the policy to revoke PPKM is in accordance with the results of many previous studies, and has also seen how the condition of the COVID-19 cases in Indonesia is currently sloping.

President Jokowi emphasized that the Perppu Cipta Kerja was issued which had nothing to do with health matters as the policies around COVID-19 including PPKM. So he appealed to the public not to mix up the two completely unrelated policies.

Moreover, according to him, the issuance of the Job Creation Perppu is dealing with the economy, while the repeal of the PPKM is completely different, therefore these two matters cannot be as if they are related to one another. For information, currently President Jokowi has indeed issued a Job Creation Perppu which aims to be able to anticipate how uncertain global economic conditions are.

For him, the government is obliged to quickly make anticipatory efforts related to the threat of global economic uncertainty, including in the face of a global recession, rising inflation to the threat of stagflation. Meanwhile, the Coordinating Minister (Menko) for the Economy, Airlangga Hartarto added that this completely uncertain global economic condition was also influenced by the geopolitical conflict between Russia and Ukraine, so that many countries were also facing financial crises.

The Coordinating Minister for Airlangga then said that the decision of the Constitutional Court (MK) regarding the Job Creation Law really influenced how behavior in the business world, whether it be for business actors from within and outside the country. In fact, he said that business actors are really waiting for the continuation of the Job Creation Law.

With all these conditions, it is undeniable that legal certainty for investors and also for the economic sector is very important. It is hoped that the emergence of the Job Creation Perppu will be able to fill the legal vacuum and also implement the Constitutional Court’s decisions which are very supportive of the business world in Indonesia.

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