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UGM Business Law Expert Calls Perppu Ciptaker will be able to Overcome Economic Recession


Jakarta- The government has issued Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation or Perppu on Job Creation on December 30, 20222. This legal regulation is considered to be important as an effort to overcome the economic recession that threatens Indonesia’s economic conditions.

Gajah Mada University (UGM) academic Prof. Nindyo Pramono said that the president has the authority to issue a Perppu due to a compelling crisis.

“The reason for the urgency of forcing entirely comes from the discretion of the president” said Prof. Nindyo in an interview on Television Station, Thursday (9/2)/

Furthermore, he explained that several aspects of the birth of the Perppu Ciptaker were a crisis situation, there was no law, there was a global situation related to the national situation.

“Including a recession. That is the government’s consideration for issuing a Perppu to replace the work copyright law which was declared conditionally unconstitutional.” Prof. Nindyo added

The UGM academic denied that the work creation Perppu was carried out in a hurry. According to him, the issuance of the Job Creation Perppu is an effort to anticipate the impact of the world economic turmoil.

“I don’t think we are in a hurry, because it is precisely the impact of global stagflation that is already visible to us, the government is anticipating it, so if it is made in a conventional way it will be too late,” he explained.

Prof. Nindyo noted that there are around 78 laws that do not support the investment climate, so that it becomes a big problem for both domestic and domestic investors. Therefore a breakthrough is needed through the Omnibus Law method.

Prof. Nindyo also alluded to a number of data that the Job Creation Law provides many benefits for Indonesia’s economic growth.

“Data from the IMF, World Bank and Indonesian Economic Prospects shows that the presence of the Ciptaker Law has indeed provided a positive climate for investment flows, especially foreign direct investment. Several concrete examples in manufacturing have experienced an increase. However, if it is measured whether it has been successful or not, in my opinion it is not fair because it has only been implemented 2 years ago. But the positive impact of the policy can be seen,” he explained.

Not only that, Prof. Ninyo also said that it is also believed that the Job Creation Law will improve the investment climate because it cuts the licensing route through Online Single Submission (OSS). According to him, this will stimulate the birth of new entrepreneurs in Indonesia.

“If it runs smoothly and is obeyed by government officials who administer the licensing sector, it will have a positive impact. If there is a positive impact, investors will come and absorb a lot of labor,” he said.

Not to forget, he also invited all parties to be able to provide an opportunity for the Job Creation Perppu so that it can be implemented so that the results can be felt and evaluated immediately.

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