The Government Calls The Ciptaker Law To Make Bureaucratics More Friendly To Entrepreneurs

JAKARTA - Deputy Minister of Finance (Wamenkeu) Suahasil Nazara revealed that the presence of the Job Creation Act (Ciptaker) changed the landscape and how the bureaucracy works in Indonesia.

"So the first must change after the Ciptaker Law should be bureaucratic," he said while speaking at the Law And Regulations Outlook 2023 forum, Monday, February 20.

Suahasil explained that the bureaucracy could only change after the law, government regulations (PP), and ministerial regulations.

"If it's just being advised (not to be effective). So it all has to be changed, and the PP must be completed within three months after the law is passed," he said.

Therefore, Suahasil stated that the presence of the Ciptaker Law is expected to be a new fundamental in how the bureaucracy works.

"Well, we want the way the bureaucracy works to be more friendly to the business world, to investment, and in the end to job creation. This logic is what we place, even when we are in a pandemic," he stressed.

To note, the Job Creation Law was passed at the end of 2020 as part of the omnibus law of the economic sector in Indonesia.

After being ratified, the regulation received a Judicial Review from the Constitutional Court. The government and the DPR responded by issuing Law No. 13/2022 which regulates the omnibus method in the formation of laws.

During the Judicial Review period, the government then issued Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation.

Later, this Job Creation Perpu has been approved by the DPR at level I talks and will be brought to the plenary level II discussion and then has the opportunity to be ratified into law.

Work creation regulations receive special attention from the minimum wage side, outsourced personnel, severance pay schemes, to termination of employment (PHK).