Employment Creation Perppu Value Economists Are Needed For Economic Recovery, But Vulnerable To Be Sued

JAKARTA - Economist from Mercu Buana University, Sugiyono Madelan Ibrahim assessed that the issuance of Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation (Ciptaker) was based on the necessity of forcing as well as a follow-up to the decision of the constitutional court (MK).

Sugiyono admitted that he was following the process of discussing the Ciptaker Law.

According to him, the regulation is indeed designed to assist the government in improving performance in the economic sector.

"I believe that the government really needs that," said Sugiyono in Jakarta, Thursday, January 5.

Sugiyono said the government did need the Perppu to move the economy in the midst of many economic conditions that were less friendly to national development.

"Itu memang kalau melihat apa yang dilakukan pemerintah, membutuhkan itu (Perppu) karena dengan adanya autonomi daerah dan segala macam, tidak mudah pemerintah untuk menerapkan suatu implementasi pembangunan, tegas Sugiyono.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto, said the Job Creation Perppu issued on December 30, 2022 was to anticipate global conditions.

"The urgent need to anticipate global conditions related to the global economic crisis and recession, as well as the need for increased inflation, and the threat of stagnation," said Coordinating Minister Airlangga.

The chairman of Golkar said that Perppu Number 2 of 2022 is important to fill legal certainty, where business actors are still waiting for the sustainability of the Job Creation Law.

"The government is regulating a budget deficit in 2023 of less than 3 percent by relying on investments that are targeted to reach IDR 1,400 trillion by 2023," he said.

Vulnerable to be sued

Meanwhile, CORE Economist Akhmad Akbar assessed that the presence of the Ciptaker Perppu would not really encourage the growth of investment.

From the start, I was skeptical that this law would really encourage investment. The main obstacle to our investment is not on regulations," he said.

Akbar highlighted the process of forming a Perppu which he considered not transparent and seemed rushed. This means, Akbar continued, that the conditions that are vulnerable to being sued do not provide legal certainty.

"And, if it is said that the Perppu is now to provide legal certainty, I don't think so. The instant process, without hearing opinions from those who have different opinions, will definitely be vulnerable to change," he explained.