Jakarta (ANTARA) - The government regulation in lieu of the Law on Job Creation, which is currently being stipulated as a law, is meant to help the state face global economic crises. Coordinating Minister for Economic Affairs Airlangga Hartarto delivered the remarks during a meeting with the House of Representatives' Legislation Agency here on Tuesday. Hartarto represented President Widodo at the meeting.
"Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 on Job Creation has become an urgent matter so as to prevent an economic crisis. This regulation also gives legal certainty to investors and business players, including micro, small, and medium enterprises (MSMEs)," the minister said.
The Perppu is in accordance with the 1945 Constitution’s Article 22, Paragraph 2, and is also listed in the Constitutional Court Decision Number 128/PUU-VII/2009, which underlines the need to resolve legal issues using a legal basis without delay, he added.
Moreover, the required legal basis has yet to be formulated, resulting in a lack of regulation, or a legal vacuum, in the current law system. "The legal vacuum cannot be resolved by making laws with normal procedure, which takes a while, whereas this urgent situation demands certainty in order to be sorted out," he remarked.
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It is also expected that making the Perppu into law would ensure national economic progress amidst issues related to global economic growth, which the International Monetary Fund (IMF) has estimated will reach 3.2 percent in 2023.
The Perppu is also expected to support the supply chain of staple foodstuffs and energy as well as reduce unemployment and help new workers. "Indonesia still needs good quality employment opportunities because of a workforce of 143.72 million people as of August 2022, 53.8 million people or 37 percent are included in either the unemployed group or working but only partially," he said.
