2023 Omnibus Law on Job Creation

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UU Cipta Kerja (2023)
National emblem of Indonesia Garuda Pancasila.svg
House of Representatives
  • Undang-Undang Nomor 6 Tahun 2023 Tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 Tentang Cipta Kerja Menjadi Undang-Undang (Act No. 6 of 2023 On the Enaction of Government Regulation in Lieu of Act No. 2 of 2022 On Job Creation into Act)
CitationLembaran Negara Republik Indonesia 2023, 41; Tambahan Lembaran Negara Republik Indonesia 6856
Passed by House of Representatives
Passed21 March 2023
Commenced31 March 2023
Legislative history
Introduced30 November 2022
Repeals
Omnibus Law on Job Creation
Status: In force

The 2023 Omnibus Law on Job Creation, officially the Act No. 6 of 2023 On the Enaction of Government Regulation in Lieu of Act No. 2 of 2022 On Job Creation into Act (Indonesian : Undang-Undang Nomor 6 Tahun 2023 Tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 Tentang Cipta Kerja Menjadi Undang-Undang) is replacement of the Omnibus Law on Job Creation. The law is passed by the People's Representative Council on 21 March 2023. [1] The law commenced on 31 March 2023. [2]

Contents

History

After the Omnibus Law on Job Creation declared "conditionally unconstitutional", Joko Widodo administration issued Government Regulation in Lieu of Law No. 2/2022 as temporary replacement of the law on 30 November 2022. [1] by the Indonesian Constitution, any Government Regulation in Lieu of Law should be made into law if the law made into the permanent one. [3]

Controversial Articles

Flexibility on Outsourcing

Article 64 of the law granted flexibility to the companies to outsource their manpower, which labour unions disliked. [4]

No Long Leave Rights

Article 79 and 84 of the law revoking mandatory rights for the workers to take leave outside leave regulated by the law such as annual leave, weekly leave, and resting. Long leave is not a mandatory, but companies are granted to create their own regulations for long leave outside the law regulated. [4]

On Minimum Wages

Article 88C, 88D, and 88F granted central and provincial government to establish indexing to establish minimum wages applicable to provincial and regency/city level. Labour unions accused that these would ease formulation of formula to establish cheap wage. [4]

Reactions

Government side

Coordinating Minister for Economic Affairs, Airlangga Hartarto, expected the investment will come easily after the passage of the law. [5]

Japanese businessmen and industrialists welcomed the passage of the law positively as Japan External Trade Organization reported. [6]

Opposition

Prior the passing of the law, Indonesian labour unions, motorized by the Labour Party, threatened to start nationwide strike to bring total collapse on Indonesian economy if the law passed and vowed to commit "jihad" against the government and law. [7] Opposition parties Democratic Party and Prosperous Justice Party, rejected the law passage. [8] [9] [10] Despite now in coalition with the opposition, Nasdem Party however supported the passage of the law. [11]

Motorized by Labour Party, as the passage of the law become fruition, 5 millions of labors across more than 100 thousands companies will proceed to the start nationwide strike campaign from July to August 2023 period to halt production of every goods produced. [12] They also will hold sporadic protests every week to People's Representative Council and government institutions, while also filed judicial reviews to Constitutional Court. [13]

Constitutional Status

The Constitutional Court declared the law constitutional and rejected cases filed by workers associations motorized by the Labour Party on 2 October 2023. [14]

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References

  1. 1 2 Febriyan (2023-03-21). "DPR Sahkan Perpu Cipta Kerja Menjadi UU, Ini 3 Potensi Bahayanya Menurut Pakar". Tempo. Retrieved 2023-03-22.
  2. ↑ "Undang - Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 Tentang Cipta Kerja Menjadi Undang-Undang" (PDF). 2023-03-31. Retrieved 2023-04-04.
  3. ↑ Kementerian Koordinator Bidang Perekonomian Republik Indonesia. "RUU Penetapan Perpu Cipta Kerja Resmi Disetujui DPR RI untuk Ditetapkan Menjadi Undang-Undang". Kementerian Koordinator Bidang Perekonomian Republik Indonesia (in Indonesian). Retrieved 2023-03-22.
  4. 1 2 3 Ramadhan, Fitra Moerat (2023-01-09). "Pasal-pasal yang Merugikan Buruh dalam Perpu Cipta Kerja". Tempo. Retrieved 2023-03-22.
  5. ↑ Fadilah, Ilyas. "UU Ciptaker Disahkan DPR, Airlangga PD Investasi Makin Deras". detikfinance (in Indonesian). Retrieved 2023-03-22.
  6. ↑ Widyastuti, Rr Ariyani Yakti (2023-03-22). "Suharso Beberkan Survei JETRO soal Optimistme Pengusaha Jepang di RI dan Dampak UU Cipta Kerja". Tempo. Retrieved 2023-03-22.
  7. ↑ Oktafian, Ilham. "Demo Tolak Perpu Ciptaker di Depan DPR, Buruh Ancam Mogok Nasional". detiknews (in Indonesian). Retrieved 2023-03-22.
  8. ↑ "Alasan Demokrat dan PKS Tolak Pengesahan Perppu Cipta Kerja Jadi UU". Bisnis.com (in Indonesian). 2023-03-21. Retrieved 2023-03-22.
  9. ↑ Tjitra, Andry Triyanto (2023-03-21). "PKS dan Demokrat Tolak Pengesahan Perpu Cipta Kerja Jadi Undang-Undang". Tempo. Retrieved 2023-03-22.
  10. ↑ "DPR Sahkan Perppu Cipta Kerja Jadi UU: Demokrat Tolak, PKS Walkout". Republika Online (in Indonesian). 2023-03-21. Retrieved 2023-03-22.
  11. ↑ Tjitra, Andry Triyanto (2023-03-22). "NasDem Beda Pandangan dengan PKS dan Demokrat Soal Pengesahan UU Cipta Kerja". Tempo. Retrieved 2023-03-22.
  12. ↑ Silaban, Martha Warta (2023-03-21). "Tolak UU Cipta Kerja, 5 Juta Buruh di 100 Ribu Pabrik Bakal Mogok Nasional". Tempo. Retrieved 2023-03-22.
  13. ↑ Silaban, Martha Warta (2023-03-21). "Tolak UU Cipta Kerja, Buruh Bakal Lakukan Judicial Review ke MK dan Demo Tiap Pekan di DPR". Tempo. Retrieved 2023-03-22.
  14. ↑ Saputra, Andi. "MK Tolak Gugatan Buruh soal Perppu Ciptaker". detiksumbagsel (in Indonesian). Retrieved 2023-10-03.
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