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)
Citation
Lembaran Negara Republik Indonesia 2023, 41; Tambahan Lembaran Negara Republik Indonesia 6856
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 an Indonesian act which made the Government Regulation in Lieu of Act (Perpu) No. 2 of 2022 On Job Creation, a replacement of the Omnibus Law on Job Creation, permanent (the entirety of the Perpu is set as a schedule to the Act). The law was passed by the People's Representative Council on 21 March 2023.[1] The law commenced on 31 March 2023.[2]
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]
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]