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Legal Experts Support Job Creation Perppu for Indonesia’s Economic Stability


The Job Creation Perppu was just passed at the end of 2022 and is in the process of being turned into law. The community supports the Job Creation Perppu which is very important for economic stability and protects investors so that investment runs smoothly, then it is the people who benefit because employment opportunities increase. The country’s economy will be stable because foreign exchange will increase thanks to the large number of foreign investment.

Government Regulation in Lieu of Law (Perppu) number 2 of 2022 was just inaugurated by President Jokowi late last year. The government claims that the Perppu replaces Law number 11 of 2020 (Job Creation Law). With the new Perppu, economic stability will improve. Moreover, Indonesia is still affected by the effects of the pandemic which also has an impact on the economy, and faces the threat of a 2023 global recession.

The Perppu on Job Creation will be passed into law and has been approved by the Legislative Body of the DPR RI. This approval is fully supported by the public because it will deal with the impact of the pandemic on the economy and stabilize Indonesia’s finances.

Deputy Minister of Manpower (Wamenaker) Afriansyah Noor stated that economic stability is an urgency for issuing Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation or Perppu Cipta Kerja which was signed by President Joko Widodo on 30 December 2022.

Afriansyah Noor continued, the ratification of the Job Creation Perppu would have a positive impact on worker stability and wages. There are rules in employment. Hopefully it is sustainable so that Peppu Cipta Kerja can become a support for future law products.

In a sense, the Job Creation Perppu really needs to be passed into law because it is very beneficial for the stability of the Indonesian economy and also for workers. Where they will get a UMP (Provincial Minimum Wage) that is appropriate and in accordance with the conditions in their area, and the calculation depends on the price of basic necessities and other basic needs. The workers are guaranteed to get a decent salary and will not be in trouble.

If workers get a minimum salary of the UMP (because employees who work more than a year are required to have a salary increase) then the economy will improve. The reason is because they have enough income to buy their daily needs.

When workers can buy groceries and other goods, it will have a positive impact on Indonesia’s economic stability, because it will move the wheels of the country’s economy. The circulation of money will continue and the market will no longer be quiet (like at the start of the Covid-19 pandemic). The Indonesian economy will continue and be able to avoid the risk of a global recession in 2023.

Meanwhile, Gadjah Mada University (UGM) business law expert Professor Nindyo Pramono said that Perppu Number 2 of 2022 concerning Job Creation is a presidential discretion. This is an effort to prevent Indonesia from entering into a situation of stagflation or crisis.

Descretion is a prerogative and President Jokowi uses it because Indonesia is in a state of urgency and avoids the threat of a global recession. Therefore, the Job Creation Perppu must be passed into law so that Indonesia does not collapse like several other countries and its people suffer from a recession.

Prof. Nindyo continued, anticipatory action with the Job Creation Perppu was the right action. So, don’t wait until a crisis occurs, then look for a way out. If you want to think wisely and wisely, of course no one wants the events of 1997-1998 to happen again.

In a sense, the 1998 monetary crisis was very stifling and at that time the government was shaking because of the sudden change of head of state. The skyrocketing dollar exchange rate caused a crisis in Indonesia and prices rose drastically. Therefore, do not let the crisis repeat itself due to the effects of the pandemic and recession, so that the ratification of the Job Creation Perppu must be supported by all Indonesian people.

Nindyo noted that several previous Perppu also did not explain the urgency of forcing. First, Perppu No. 1/1998 concerning Amendments to the Law on Bankruptcy. This Perppu was born in the midst of a crisis in 1997/1998. Regarding the issue of ‘forced urgency’ at that time it was very nuanced with economic considerations.

Meanwhile, economic and political observer Emrus Sihombing stated that the Job Creation Law (UU Ciptaker) in Indonesia actually makes it easier for micro, small and medium enterprises (MSMEs) to further develop. Through the Job Creation Law, the bureaucratic procedures and flows of establishing a business field are simplified.

Therefore, Emrus supports the ratification of the Job Creation Perppu into law. Where the procedure for establishing a PT, for example, can only be done by one person or referred to as an individual PT. In addition, the number of members forming cooperatives has been greatly reduced, not as much as before the birth of the Job Creation Law.

In a sense, the Job Creation Perppu must be passed into law because it is beneficial for the Indonesian people, especially MSME entrepreneurs. Where it is very easy for businesses to get legality from the state. With this legality, it will make it easier to obtain BPOM permits, MUI halal status, etc.

The Job Creation Perppu will be passed into law and the Indonesian people will fully support the government’s decision. The reason is because this law has a good effect on workers so they get a decent salary. Then, if the Perppu is passed into law it can help MSME businessmen so that their businesses run smoothly.

)* The author is a contributor to Nusantara Reading Room

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