Omnibus Law Amendment is a Priority: Government

TheIndonesia.id - Coordinating Economic Affairs Minister Airlangga Hartarto confirmed the government will inform the House of Representatives (DPR RI) leadership to designate amendment of the Job Creation Law or Omnibus Law as a priority in the 2022 National Legislation Program.

"The Constitutional Court has also been notified regarding the inclusion of the Job Creation Law to the legislation program's open cumulative list," Hartarto stated at a press conference in Jakarta on Monday, November 29, 2021.

Earlier, the Constitutional Court had declared Law No. 11 of 2020 on Job Creation as conditionally unconstitutional and ordered the government to proceed with amending the law within a period of two years.

Hartarto drew attention to articles concerning manpower, such as manpower management, job termination benefits, and wage management, currently being targeted for the amendment.

The Home Affairs Ministry will issue an instruction for regional leaders to adjust derivative regulations and the current law enforcement, Hartarto noted.

The government will also hold discussions with the DPR RI regarding the proposed amendment on the Job Creation Law to harmonize and perfect the amendment draft prior to its ratification, he added.

Concurrently, the coordinating minister highlighted that the Job Creation Law had been successful in boosting investment in Indonesia, as the Investment Coordination Board (BKPM) had recorded a 7.8-percent increase in national investment during the January-September 2021 period as compared to the corresponding period last year.

"Our investment value has reached Rp659 trillion (around US$46.1 billion), and 912,402 new job opportunities are created from the first quarter to the third quarter of 2021," Hartarto remarked.

He further expounded that 311,793 new job opportunities were recorded in the first quarter of 2021, while 311,922 new jobs were created in the second quarter, and 288,687 new jobs were recorded in the third quarter of 2021.

A total of 379,051 permits were issued through the Online Single Submission (OSS) System from August 4 to October 31, 2021, with micro-enterprises accounting for 94.42 percent out of the entire permits applied; small-scale enterprises, 3.91 percent; middle-scale enterprises, one percent, and large-scale enterprises, 0.67 percent, Hartarto added.

Last Thursday, the Constitutional Court orders the Indonesian House of Representatives (DPR) and the government to revise the Omnibus Law of Job Creation within the next two years. If it is not corrected, the law is declared invalid.

The verdict was read by the Chief Justice of the Constitutional Court Anwar Usman through the YouTube channel of the Indonesian Constitutional Court, Thursday, November 25, 2021. The Constitutional Court stated that Law Number 11 of 2020 concerning Job Creation is contrary to the 1945 Constitution of the Republic of Indonesia.