VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Constitutional Court -MK has ruled that Law No.11/2020 on Job Creation or better known as the Job Creation Law is conditionally unconstitutional. The MK also officially ordered the House of Representatives -DPR and the Government to revise the law within 2 years.

What is the government's response to the Constitutional Court's verdict which is final and binding? President Joko Widodo in a press statement at the Presidential Palace in Jakarta, Monday (29/11) stated that as part of a democratic country based on law, the government will respect and immediately implement the Constitutional Court's verdict.

However, President Joko Widodo assured both domestic and foreign investors that investment will continue to run safely. In his view, he believes that nothing has been canceled by the MK regarding the Job Creation Act. President Joko Widodo also emphasized that with the Constitutional Court stating that the Job Creation Law is still in effect, all the material and substance in the Job Creation Law and the rules will remain in full force and effect without any article being canceled or declared invalid. President Joko Widodo also expressed the government's commitment and his commitment that the agenda of structural reform, deregulation and de-bureaucratization will continue to be implemented.

For investors, especially foreign ones, President Joko Widodo's commitment is important. For the business world, the most important thing is legal certainty in running their business in Indonesia. Now, the government and the DPR must immediately work hard to revise the Job Creation Law so that it is constitutional. Meanwhile, the government still has to maintain its commitment to investors. If not, the government will lose not only trust, but also probability to be sued internationally.

Hopefully, the government and the DPR can immediately revise the Job Creation Law without incurring loss for domestic and foreign investors. Ease of doing business is an absolute requirement for a country to be able to attract as much investment as possible. More investment means more jobs are available and the economy continues to grow. The ultimate goal of investment should be towards the welfare of the people.