JAKARTA - Chairman of the Indonesian Employers' Association (Apindo) Hariyadi Sukamdani revealed that foreign investors who invest in Indonesia are starting to worry about the polemic of the Job Creation Law. This follows the decision of the Constitutional Court (MK) which declared the law conditionally unconstitutional.
As is known, the panel of judges of the Constitutional Court decided that Law Number 11 of 2020 concerning Job Creation was contrary to the 1945 Constitution of the Republic of Indonesia. The Job Creation Act was also declared to have no conditionally binding legal force.
"In our view, this is very worrying. This is also the opinion of foreign investors who also asked us, this is how the laws that you make. How will this be? Will everything be changed?," said Hariyadi, in an annual press conference. virtual, Friday, November 26.
Hariyadi explained that the material in the Job Creation Law had not changed, even though the Constitutional Court ruled that Law Number 11 of 2020 was conditionally unconstitutional.
"So there is no change in the material, the legal form was changed at the time of forming the Job Creation Act. This must be understood together because there are voices who say 'due to formal defects, everything is null and void', not so," he said.
The Constitutional Court's decision does not disturb the economy
Hariyadi explained that although there were concerns from foreign investors, the Constitutional Court's decision had no impact on the economy or investment.
"There is relatively no serious impact because the problem is only to revise the Law on the formation of the Job Creation Law, namely Law Number 12 of 2011. So God willing, there will be no serious impact," he said.
Even so, according to Hariyadi, concerns arise because the Constitutional Court's decision has multiple interpretations. According to him, this could lead to a negative perception of consistency in making efforts to bring the economy forward and especially efforts to create jobs.
"In my opinion, this is very serious because it is interpreted by several opinions that have emerged from yesterday until now. One of them said that if the Law on Job Creation was decided to be formally flawed by the Constitutional Court how the contents were not flawed, there was such an opinion," he explained.
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