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Constitutional Court Orders Parliament And Government To Revise The Job Creation Law Because It Is “contrary To The 1945 Constitution”

Constitutional Court orders parliament and government to revise the Job Creation Law because it is “contrary to the 1945 Constitution”

The wave of demonstrations against the Job Creation Law continued after the law was passed on October 5, 2020.

25 November 2021

The Constitutional Court ordered Parliament and the Government to revise the Job Creation Law within the next two years. If it is not corrected, the law revised by the Job Creation Law is deemed to be re-applicable.

This was the decision that was read by the Chief Justice of the Constitutional Court Anwar through the YouTube channel of the Indonesian Constitutional Court, Thursday (25/11).

The Panel of Judges of the Constitutional Court in its decision stated that Law Number 11 of 2020 concerning Job Creation is contrary to the 1945 Constitution of the Republic of Indonesia and has no conditionally binding legal force.

“Contrary to the 1945 Constitution of the Republic of Indonesia and does not have legally binding conditionalities as long as it does not mean ‘no improvements have been made within two years of this decision being pronounced’,” said Chief Justice of the Constitutional Court Anwar Usman as quoted by Antara news agency.

Anwar Usman also stated that the Employment Creation Act will remain in effect until the legislators, namely the government and parliament, make improvements to the formation in accordance with the grace period as specified in the decision.

If within that period the legislators do not make improvements, the Job Creation Act becomes permanently unconstitutional and all laws revised by the Job Creation Act are deemed to be re-applicable.

“Within a period of two years the legislators are unable to complete the improvements to [the Job Creation Law] the law or articles or the material content of the law that has been revoked or amended by the Job Creation Act must be declared valid again,” said Anwar Usman.

In addition, the government is also prohibited from making new implementing regulations derived from the Job Creation Law for the next two years.

“Declaring to suspend all actions or policies that are strategic in nature and have a broad impact, and it is also not justified to issue new implementers related to Law Number 11 of 2020 concerning Job Creation,” said Anwar.

How will the government respond?

Coordinating Minister for the Economy Airlangga Hartarto said the government would revise the Job Creation Act after the Constitutional Court (MK) ruling determined that the law was contrary to the 1945 Constitution.

“After attending the Constitutional Court hearing, the government respects and obeys the decision of the Constitutional Court and will implement Law Number 11 of 2020 concerning Job Creation as well as possible in accordance with the decision of the Constitutional Court in question,” Airlangga said in a press conference via the Presidential Secretariat’s Youtube channel, Thursday. (25/11).

He also said the government would prepare amendments to the law in accordance with the direction of the Constitutional Court.

Considered counterproductive

“Since President Joko Widodo revealed plans to draft a Job Creation Law, there have been criticisms of its aims and drafts, the law often dubbed the ‘Omnibus Law’ deemed “too capitalistic and neo liberalistic” as well as “lack of transparency and lack of involvement of workers and civil society.”

The government’s efforts to streamline regulations in order to simplify investment permits and improve people’s welfare are actually considered counterproductive by economic observers.

A series of student demonstrations against the Omnibus Law also took place in a number of areas. The DPR plenary meeting ratified the Omnibus Law on Job Creation on October 5, 2020, although it continued to be rejected by various labor groups and a number of other parties.

There are a total of XII chapters in the Law, including improving the investment ecosystem and business activities; employment; convenience, protection, and empowerment of cooperatives and SMEs; ease of doing business; national fiscal policy; research, and innovation support.

How was the discussion of the Job Creation Bill going?

Starting with President Joko Widodo’s statement, in his inauguration speech on October 20, 2019, which said that the government would make the Omnibus Law, the discussion process was rolling out, as reported by Koran Tempo (05/10 and 13/10), and Magazine Tempo (18/10):

  • 16 December 2019: The government forms an omnibus law task force led by the General Chairperson of the Chamber of Commerce and Industry, Rosan Roeslani.
  • 13 January 2020: Demonstrations by labor groups against the Job Creation Bill.
  • 15 January: President Jokowi wants the omnibus law on job creation to be completed before the 100-day working period of the Advanced Indonesia Cabinet.
  • 20 January: Tens of thousands of workers demonstrate against the omnibus law at the Parliament building.
  • 22 January: Parliament ratifies the Job Creation Bill as part of the 2020 priority National Legislation Program.
  • 7 February 2020: The government submits the draft Omnibus Law to the Parliament. The name of the bill was changed to Job Creation.
  • 4 Maret 2020: 2020: A number of civil society organizations rejected the invitation from the Presidential Staff Office to discuss the Job Creation Bill. and students rallied in the Parliament building and in several areas.

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