The controversial issuance of a government regulation in lieu of law (Perppu) on job creation could have a positive impact on economic activities this year, economists say, as it may act as a catalyst to improve the Indonesian business climate, which will eventually lead to healthier investment growth.

President Joko “Jokowi” Widodo signed Perppu No. 2/2022 on Friday to replace the Job Creation Law that had been declared "conditionally unconstitutional" by the Constitutional Court (MK) late in 2021. The court ordered policymakers to restart the process within two years, or it would be deemed unconstitutional.

However, the issuance of the Perppu has drawn criticism from civil society groups who argue that it deprives the public of meaningful participation in the making of such important legislation.

Source:
courtesy of THE JAKARTA POST

by Wike D. Herlinda and Nur Janti (The Jakarta Post)

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