Investor Presentaiton
Job Creation Law As A Tool For Long-term Structural Reform
PROGRESS OF THE JOB CREATION LAW
With the Omnibus Law method, 79 laws were revised
and simplified to become the Job Creation Law (Law
Number 11 2020) was promulgated
on November 2, 2020
Clusters in the Job Creation Law
1. Improving the Investment Ecosystem and Business Activities
Employment
Ease, Protection, and Empowerment of Cooperatives and MSME
Ease of Business
2.
3.
4.
5.
Research and Innovation Support
6.
Land Procurement
7.
Economic Zone
8.
Central Government Investment and Acceleration of National
Strategic
Derivative regulations of 54 Government
Regulations/Presidential Regulations
The decision of the Constitutional Court on
November 25, 2021
On June 16, 2022, Law No. 13 of 2022 concerning
Amendments to Law No. 12 of 2011 concerning the
Establishment of Legislation
The government prepares improvements to
the job
creation law following the decision of the Constitutional
Court, which involves the technical formation of the job
creation law but does not change its substance.
Preparation of academic manuscripts and draft law
manuscripts
It has expected to be completed in 2022.
Source: Coordinating Ministry for Economic Affairs
.
9. Projects Implementation of Government Administration
10. Imposition of Sanctions
a) Revising Law 12/2011 to accommodate the Omnibus Law
method
b) Change the Job Creation Law based on the revision of Law
12/2011 within two years
c) Review the substances that objection to the community
The subject matter in the revision includes:
a) Omnibus method;
b) Strengthen community involvement and meaningful participation;
c) Regulatory digitalization
d) Improve the technical error of writing in the draft law either
that has been agreed upon or after the President receives the
bill
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, and facilities for MSMEs, still applies.
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