Indonesia’s top court has ruled that the country’s widely criticized job creation law is unconstitutional and ordered the government to amend it within two years.
JAKARTA, Indonesia – Indonesia’s top court on Thursday ruled that the country’s widely criticized job creation law is unconstitutional and ordered the government to amend it within two years.
The act amended 77 previous laws and was intended to improve bureaucratic efficiency as part of President Joko Widodo’s administration’s efforts to attract more investment.
The Constitutional Court voted 5 to 4 in favor of the petitioners – a private company employee, four students and the Confederation of Indonesian Labor Unions, known as KSPI – who argued that the way the law was handled was procedural. was grossly flawed.
The court agreed, saying the process was not completely transparent and it was not clear whether the merger of the previous laws was an amendment or the creation of a new law.
The court said the law would remain in effect until amended within two years and ordered the suspension of any broad strategic action or the issuance of new rules relating to the law.
Chief Justice Anwar Usman said that if amendments are not made within two years, the law will be deemed “permanently unconstitutional” and “laws or articles that were already repealed or replaced by job creation laws”. were, they should be revived.”
KSPI president, Saeed Iqbal, welcomed the decision and said that his party was ready to participate in the amendment of the law to ensure that it does not dilute the basic rights of workers.
He said the current law harms workers by reducing severance pay, removing restrictions on manual labor by foreign workers, increasing the use of outsourcing and converting monthly wages into hourly wages.
The Minister of Coordination for Economic Affairs Airlanga Harterto said the government respected the decision of the Constitutional Court.
“The government will immediately comply with the court’s decision by preparing amendments to the law and carrying out other orders of the court,” he told a news conference.
Indonesia, Southeast Asia’s largest economy, is keenly attracting foreign investment as a key driver of economic growth in a nation where nearly half of the 270 million population is under the age of 30.