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UGM Professor: Perppu Ciptaker Overcomes Crisis and also Fills Legal Vacuum

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Jakarta — Professor of Business Law at Gadjah Mada University (UGM), Prof. Nindyo Pramono stated that the formation of the Job Creation Perppu cannot be separated from the crisis.

“The Perppu on Job Creation cannot be separated from a juridical basis because of a pressing emergency. Indeed, the President has the authority to issue a Perppu if there is a pressing emergency. Some of the parameters are a crisis situation, there is an urgent need for legislation that is indeed empty so as to fill the void, then related to the global crisis which has affected the national crisis. he said in an interview on Television Station, Thursday (9/2).

Furthermore, according to him, the global crisis itself has begun to affect the national economy, and the government does not want the conditions of the past few years to repeat itself.

“The impact of stagflation or the global crisis has affected our economy, the government does not want to return to the old situation, that is, there was a crisis before making laws. So we anticipate that,” explained Prof. Nindyo.

Responding to accusations that it appeared as if the issuance of the Perppu Cipta Kerja was done in a hurry, he firmly dismissed this.

Precisely according to the UGM Professor of Business Law, when the government publishes legislation using conventional methods it will take a very long time so it will not be able to overcome global threats.

“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,” he explained.

Prof. Nindyo Pramono also explained how the benefits of having the Job Creation Law were very positive for the investment climate in the country.

“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.

But unfortunately, the Ciptaker Law was declared conditionally unconstitutional through the Constitutional Court’s decision, so it was hampered by procedural reasons, even though in substance there were no problems in it.

“The government has made improvements starting with the revision of the Law on Formation of Legislation, the Omnibus Law method was included, when it was included in the Judicial Review, Law No. 13/2022 Judicial Review is also carried out. So if the government conducts socialization that the interests of the Ciptaker Law are in favor of MSMEs and Cooperatives so that their status is elevated but it is disturbed by a procedural formalistic approach,” said Prof. Nindyo.

Prof. Nindyo also appealed to the public to give Perppu Ciptaker the opportunity to implement it. This is necessary so that the results of these regulations can be evaluated proportionally.

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