Constitutional Court Taps Hammer Unconstitutional Job Creation Law, Government Guarantees Investment Guarantee During Repair Period

Photo: BPMI Setpres/Lukas

JAKARTA - Coordinating Minister for Political, Legal, and Security Affairs (Menko Polhukam), Mahfud MD, asked investors who invest in the country based on Law Number 11 of 2020 concerning Job Creation not to worry. He emphasized that the investments that have been made are still safe and have legal certainty.

He conveyed this certainty in response to the decision of the Constitutional Court (MK) which stated that the Job Creation Law was unconstitutional and must be corrected within two years.

"The government guarantees that investments that have been invested and will be invested in Indonesia based on Law Number 11 of 2020 concerning Job Creation are safe and have legal certainty. For what reason? The Constitutional Court stated that the law is valid for two years", Mahfud said in a statement to reporters on Monday, November 29.

"Agree or disagree, that's what the Constitutional Court said", he added.

In addition, the former Chief Justice of the Constitutional Court (MK) said that investments made in the two-year period of revising the Job Creation Law cannot be canceled and have legal certainty. This, continued Mahfud, is based on the sound of the Civil Code.

"The agreement that has been made legally applies as law. So it can't be revoked just like that, it's binding", he said.

Mahfud emphasized that the government would not be arbitrary in canceling investment agreements with business people, especially from other countries. The reason is, if this happens it can cause international problems.

"International cases that international arbitration must use national legal instruments. Moreover, there are bilateral and multilateral agreements in that field", he said.

"Therefore, people don't worry about that. People don't worry about this law coming into effect and the government grasping this meaning is only a matter of procedures that are requested to be corrected, so that the entire application for judicial review concerning its contents is declared null or cannot be accepted", added Mahfud.

Furthermore, the government will commit to completing the revision in less than two years. "We will try to be faster than two years so that it is easier to complete", concluded Mahfud.