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Indonesian President Joko Widodo signed an emergency regulation to replace a controversial job creation law, his chief economy minister said on Friday after a constitutional court ruled the law was flawed until 2021.
Airlangga Hartarto said the move was to ensure legal certainty and achieve the government’s investment targets amid global geopolitical tensions.
The Constitutional Court ruled last year that passage of the president’s vaunted job-creation law was flawed because of insufficient public consultation, and ordered lawmakers to restart the process within two years. Otherwise the law would be considered unconstitutional.
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Indonesia’s so-called “omnibus” law was passed in 2020, amending more than 70 other laws and has been praised by foreign investors for simplifying business rules in Southeast Asia’s largest economy, which is notorious for cumbersome bureaucracy.
But it has also sparked nationwide protests from workers, students and green groups who say it erodes labor and environmental protections.
Noting the court’s ruling, Airlangga said, “Constitutionally speaking, the Emergency Regulations will supersede the Job Creation Act”.
Chief Security Minister Mahfud MD said the government opted for emergency regulation because the routine process of complying with court rulings would take too long. He said the government needed to decide on “strategic measures” to deal with the impact of next year’s global recession and potential food crisis.
Earlier this year, lawmakers told Reuters they planned to revisit the legislation to comply with the court ruling.
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