LPI Safe To Operate Despite Unconstitutional Job Creation Law, Coordinating Minister Airlangga: There Is A PP Before The Constitutional Court's Decision

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto has given certainty that the implementation of the work of the Investment Management Agency (LPI) or the Indonesia Investment Authority can still run as it should after the decision of the Constitutional Court (MK) regarding the Job Creation Act or Ciptaker which is considered unconstitutional.

According to him, LPI was born as a government institution on the basis of the Copyright Act. However, the presence of the institution has been strengthened through a derivative regulation in the form of a Government Regulation (PP) issued last year.

"The regulation on the implementation of the LPI as an institution that is given special authority in the context of investment management has been regulated in a PP that was stipulated before the decision of the Constitutional Court was issued," he said through a virtual channel, Monday, November 29.

So, continued Airlangga, there is no solid basis to stop LPI's activities because the Constitutional Court still allows activities to continue during the law revision process.

"Thus, the operation of the LPI will continue to run in accordance with the decision of the Constitutional Court," he said.

For information, the Investment Management Institute comes from the spirit of the omnibus law that was initiated by President Joko Widodo to accelerate the Indonesian economy in order to realize the dream of becoming a developed country.

This intention was then stated in Government Regulation (PP) Number 74 of 2020 concerning Investment Management Institutions. This regulation was signed by President Joko Widodo on December 14, 2020.

LPI is an Indonesian legal entity wholly owned by the government and is responsible to the President.

In terms of formation, LPI is known to have been provided by the government with IDR 30 trillion in cash through the state capital participation (PMN) mechanism. In addition, LPI was also supported by Rp45 trillion in the form of share transfers to support operations in attracting investors to be able to do business in Indonesia.