The Indonesian government officially enacted the Government
Regulation in Lieu of Law (Peraturan Pemerintah Pengganti
Undang-Undang) No. 2 of 2022 on Job Creation ("Perppu
on Job Creation") on 31 December 2022. The
Coordinating Minister for Economic Affairs has stated that the
issuance of the new regulation is in the spirit of anticipating the
various economic and geopolitical challenges posed by the current
global dynamics.1
Additionally, the regulation is issued to revoke the Law No. 11
of 2020 on Job Creation ("Job Creation
Law"). This is due to the mandate of the
Constitutional Court Decision No. 91/PUU-XVIII/2020
("Constitutional Court Decision") which
declared the Job Creation Law as "conditionally
unconstitutional" and shall be corrected and/or amended within
the 2 years after the issuance of the Constitutional Court
Decision. The Perppu on Job Creation in total contains a range of
articles that encompasses similar matters under the Job Creation
Law.
