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Perpu Cipta Kerja Overcomes Crisis and also Anticipates Economic Crisis

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Professor of Business Law at Gadjah Mada University (UGM) Prof. Nindyo Pramono stated that the Job Creation Perpu was formed because of a juridical interest that cannot be separated from a coercive crisis.

Government Regulation in Lieu of Law (Perpu) regarding Job Creation was enacted on 30 December 2022 and promulgated on the same day.

Prof. Nindyo Pramono said that the Perpu Cipta Perpu was the government’s effort in anticipating an uncertain economy to provide legal certainty regarding job creation.

“In this case, the President has the authority to issue a Perpu if there is a pressing emergency,” said Prof. Nindyo.

He further added that this work copyright law is a substitute for the copyright law which was declared unconstitutional by a Constitutional Court decision. Conditions of global uncertainty forced the government to issue work copyright law number 2 of 2022.

“Several parameters of urgency include a crisis situation, an urgent interest due to a legal vacuum, then the global crisis which has an impact on the national crisis. That is the government’s consideration for issuing Perpu No.2/2022 concerning Ciptaker,” he said.

Facing the imminent risks of global uncertainty and national economic conditions, the Government continues to prepare a series of strategies through a responsive mix of fiscal and monetary policies.

Prof. Nindyo said, the urgency of imposing a Perpu can be interpreted as an anticipatory attitude and the Job Creation Perpu is an anticipatory effort for global economic conditions.

“The impact of stagflation or the global crisis has affected the national economy. Because of that, the government does not want to return to the old situation, that is, there was a crisis before making laws, so what is being implemented is anticipating that,” he said.

“The effects of global stagflation have entered our country, so we anticipate that.” he continued.

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