2022 State Budget and Fiscal Incentives Presentation
The Government Will Immediately Follow Up The Constitutional
Court's Decision On The Job Creation Law
COMPREHENSIVE EXPLANATION TO THE
PUBLIC, MARKETS, ASSOCIATIONS, AND
INVESTORS
To affirm that the Job Creation Law and its
implementing regulations are still in effect and no
material on the Law has been annulled by the
Constitutional Court. Thus, the implementation of the
Job Creation Law which concerns, among others,
Business Licensing and OSS, Employment including
provincial and district/city minimum wages, facilities
for MSMEs still applies.
AMENDMENT OF LAW 12/2011:
a. To add the methods and techniques for preparing
Law through omnibus approach to fulfill positive
legalistic aspects.
b. The amendment will be included in the 2022
Priority Prolegnas.
IMPLEMENTING REGULATIONS OF THE JOB
CREATION LAW:
a.
b.
C.
Governmental dan Presidential Regulations, which
are issued after the Constitutional Court's ruling, are
treated as operational and will utilize other legal
bases. For example, Presidential Regulation on the
Commodity Balance (Neraca Komoditas) will be
based on Trade Law.
The Ministerial/Head of Institution Regulations dan
Regional/Head of Regional Regulations still need to
be completed.
The implementation of Risk-Based Business Licensing
and Online Single Submission system continues as
Source: Coordinating Ministry for Economic Affairs
FOLLOW
UP PLAN
a.
REVISION OF THE LAW ON JOB CREATION:
a.Will refer to the amendments of Law 12/2011
(adjustment of the methods and techniques of
Law preparation)
b. To ensure sustainability and legal certainty, the
revision of the Law on Job Creation must be
completed immediately before the G-20 Summit
C. The completion of the Law on Job Creation
revision before the G-20 Summit will give a
positive impression of Indonesia's consistency in
structural transformation.
28
28View entire presentation