Indonesia issues emergency regulation to replace controversial job law; legal experts criticise move

The Indonesian government on Friday (December 30) issued an emergency regulation to replace the controversial Jobs Creation Law that was passed two years back. The regulation has been criticised by some legal experts who said it is an attempt by the government to bypass proper debate in Parliament.Addressing a press conference on Friday, President Joko Widodo said, "We know it looks like we're normal now, but global uncertainty, risk is haunting us ... Actually the world is not doing fine."

Widodo argued that Indonesia's economy would rely on investments and exports next year and that legal certainty about the law was crucial to maintain good investor perception, reports news agency Reuters.

Indonesia's chief economic minister Airlangga Hartarto, meanwhile, said the main consideration to issue the emergency regulation was a global recession risk next year, the war in Ukraine, climate change and the potential for a worldwide food, energy and monetary crisis.

The Jobs Creation Law had revised over 70 other laws and was praised by foreign investors for streamlining rules in Indonesia. However, the legislation also lead to nationwide protests from workers, students and green groups who said it eroded labour and environmental protections, Reuters reported.

In 2021, the constitutional court ruled that the passage of the Jobs Creation Law was flawed because of inadequate public consultation. The court ordered lawmakers to restart the process within two years. The law would otherwise be deemed unconstitutional.

One of the biggest controversies in the law included relaxed rules on severance pay, contract labour and outsourcing, and changes to the minimum wage formula.

Bivitri Susanti, a constitutional law expert from the Indonesia Jentera School of Law, said the emergency regulation is a "fait accompli'' from President Widodo.

"Everyone can see there is no emergency. It's holiday time," Susanti said and pointed out the move is "ridiculous" and ''inappropriate'' as it would reduce debate time in Parliament.

(With inputs from agencies)

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