By: Aulia Hawa )*
The Constitutional Court (MK) has determined that the Job Creation Law requires revisions or improvements. The revision of the Job Creation Law is expected to provide legal certainty in investing in Indonesia.
President of the Republic of Indonesia Ir. Joko Widodo said that the government respected and immediately implemented the decision of the Constitutional Court (MK) Number 91/PUU-XVII/2020 related to Law Number 11 of 2020 concerning Job Creation.
President Jokowi said that by stating that the Job Creation Law was still in force by the Constitutional Court, then all the material and substance in the Job Creation Law and the full rules remained in effect without any article being canceled or declared invalid by the Constitutional Court.
The Head of State stated that he had ordered his staff to immediately follow up and make improvements regarding the decision. The President added that all existing implementing regulations for the Job Creation Law are still in effect.
The President also emphasized that the government’s commitment to the structural reform agenda, deregulation and debureaucratization will continue to be carried out. The President also ensures that the government guarantees the security and certainty of investment in Indonesia.
He also ensures to business actors and investors from within and outside the country that the investments that have been made, as well as investments that are currently and will be in progress are safe and secure.
On a different occasion, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia stated that there were a number of points in the Constitutional Court’s decision related to the Job Creation Law that required further study.
Bahlil assessed that the main provisions of the Job Creation Act were still in effect after the Constitutional Court’s decision. However, the government found that there were several points from the decision that needed attention.
He stated that the government could speed up the revision of the Job Creation Law by early next year. The target could be faster than the Constitutional Court’s order, which is a two-year amendment at the most, so that the Job Creation Law does not become permanently unconstitutional.
Bahlil said that the Constitutional Court’s decision highlighted upstream issues or the formal aspects of making the Job Creation Law, so that the government could speed up revisions in order to maintain legal certainty for investment. According to him, the Constitutional Court did not cancel any articles or regulations derived from the Job Creation Law, so that there were no significant obstacles for investment activities. He acknowledged that the decision would have an impact. It’s just that the impact can be managed if good communication is carried out
Meanwhile, the Constitutional Court’s decision which requires the government to revise Law Number 11 of 2020 concerning Job Creation with the DPR RI, is considered not to hamper the flow of capital to investors.
Deputy for Climate Development and Investment at the Ministry of Investment/BKPM Yuliot said the investment climate in Indonesia is safe and under control despite the Constitutional Court’s decision. This is because the rules for the derivative of the ease of doing business have been issued.
There are four regulations issued by the Ministry of Investment/BKPM regarding business licensing. First, Government Regulation (PP) Number 5 of 2021 concerning Implementation of Risk-Based Business Licensing.
This regulation implements the latest one-door business licensing system, namely the Online Single Submission (OSS) Risk Based Approach (RBA). This has made all the business licensing regulations of Ministries/Institutions (K/L) and local governments (Pemda) since last August, accessible simply through the OSS RBA.
Second, PP Number 6 of 2021 concerning the Implementation of Business Licensing in the Regions. PP 6/2021 implements business licensing in the regions carried out electronically starting from the permit application stage until the issuance of documents which are carried out in one door.
Third, PP Number 7 of 2021 concerning Ease, Protection and Empowerment of Cooperatives and Micro, Small and Medium Enterprises (MSMEs). One of the regulations is that large domestic and foreign investors must involve cooperatives and MSMEs around the place to invest.
Fourth, Presidential Regulation Number 10 of 2021 concerning the Investment Business Sector. This rule classifies the Classification of Business Fields (KLU) that are still on the Positive Investment List (DPI).
The Constitutional Court’s decision cannot be contested, this problem can of course be resolved with good communication. Hopefully the investors who have or will invest their capital understand the conditions in Indonesia and believe that the problem can be overcome.
)* The author is a contributor to Pertiwi Institute
