Amendments To Law On Legislation Formation Challenged

Late last year on November 25, 2021, the Indonesian Constitutional Court ruled against the Government in its Decision No. 91/PUU-XVIII/2020 (the "Decision") regarding the constitutionality and validity of Law No. 11 of 2020 on Job Creation (the "Job Creation Law"). The decision declares the Job Creation Law as "conditionally unconstitutional," due to the absent legal basis on the formality of such law drafting (known as the omnibus method), for two years as of the date of the Decision.

As required under the Decision, the Parliament and the Government rectify the "conditional unconstitutional" nature of the Job Creation Law by amending Law No. 12 of 2011 on Legislation Formation (the "Legislation Law") with Law No. 13 Year 2022 on Second Amendment to Law No. 12 of 2011 on Legislation Formation (the "2022 Amendment"). The 2022 Amendment was enacted on June 16, 2022. Five implementing regulations should be issued following the 2022 Amendment.