YOGYAKARTA - President Joko Widodo (Jokowi) signed a Government Regulation in Lieu of Law (Perppu) Number 2 concerning Job Creation. The issuance of the Job Creation Perppu itself was carried out on Friday, December 30, 2022. The public then highlighted several facts about the Job Creation Perppu.
The issuance of a Perppu related to the replacement of the Job Creation Law was announced by the Coordinating Minister for the Economy Airlangga Hartarto. He said that one of the considerations of the Government to issue the Perppu was due to urgent conditions. In addition, there are other reasons that are quite interesting, namely as follows.
Substitute to Law No. 2 concerning Job Creation is said to have been signed because of urgent needs. The Coordinating Minister for the Economy said that this was done to respond to global conditions that needed to be anticipated, such as facing a global recession, inflation, stagnation threats, multi-sector crises, interest rates, geopoliticals and food crises.
"The consideration is the need to urge the government to accelerate anticipation of global conditions, both related to the global economy. We are facing a global recession, increasing inflation, then the threat of stagflation," Airlangga said at a press conference at the Presidential Palace, Central Jakarta, Friday, December 30, 2022.
Coordinating Minister Airlangga also mentioned the global economic pressure. He also mentioned that various countries that queued up and became patients with the International Monetary Fund (IMF) continued to rise. Currently, there are more than 30 countries, while countries are queuing up to 30 countries.
Airlangga assessed the existence of the Job Creation Perppu as well as providing certainty for investors both from within and outside the country who had been waiting for the continuation of the Ciptaker Law.
"This is important, so that legal certainty is held, so of course with the issuance of Perppu Number 2 of 2022, it is hoped that legal certainty can be filled, and this will be the implementation of the Constitutional Court's decision," he explained.
Legal certainty is very important in order to achieve the investment targets set by the Government.
"We have set the budget deficit below 3% and rely on investment, so next year our investment will increase by Rp 200 trillion, it is important that legal certainty is held. So that with Perppu it is hoped that legal certainty can be filled," he said.
Regarding the issuance of Government Regulation in Lieu of Law (Perppu) Number 2 of 2022, President Joko Widodo had opened his voice. He explained that the sudden issuance of the Perppu was because Indonesia was threatened with world economic uncertainty.
"Why perppu? We know we seem normal, but we are peeked at by threats of global uncertainty," said the President at the State Palace, Friday, December 30, 2022.
At that time, President Jokowi mentioned that there were 16 countries that were IMF patients, while countries that had queued up to 28 countries due to issues related to the pandemic and were exacerbated by the Russian-Ukraine war.
"In fact, the world is not doing well, the threat of risk of uncertainty is causing us to issue a Perppu because it is to provide legal certainty, a legal vacuum that is in investor perception both at home and outside. That is the most important because our economy in 2023 will depend on investment and exports," Jokowi explained.
One of the highlights in the Government Regulation to replace the Job Creation Perppu is related to the provision of minimum wages.
The President of the Confederation of Indonesian Workers Unions (KSPI) Said Iqbal explained, in the Perpu it was stated that the district/city minimum wage used the term can be determined by the governor. According to him, the word can'' mean it can exist and can't.
It is the same as the Job Creation Law. The legal language can be can', meaning there can be no, depending on the Governor. The workers' proposal is, the editor is the Governor setting the district/city minimum wage," he said in an official statement, Sunday, January 1, 2023.
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