COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/186/SET.M.EKON.3/4/2022

Working Meeting Between Government and Legislation Committee House of Representative (DPR RI) as A Follow Up to Constitutional Court Decision Regarding the Job Creation Law

Jakarta, April 7th, 2022

Facing the dynamics and various global challenges today, Indonesia needs various breakthroughs and initiatives, especially in an effort to increase investment and job creation. This is very important to be finalized in order to maintain the momentum of economic growth which has returned to a positive path.

Through the Job Creation Law, the Government continues to encourage increased investment and economic growth through regulatory reforms in the field of business licensing. These reforms are aimed at solving investment barriers, namely long bureaucratic chains, overlapping regulations, and hyper-regulation. In case of global challenges caused by geopolitical crisis between Russia and Ukraine, the Government has anticipated the impact of rising global commodity prices, especially food and energy commodities through policies that favor the people by strengthening social aids.

As a form of follow-up to the Decision of the Constitutional Court (MK) No. 91/PUU-XVIII/2020 on the formal review of Law Number 11/2020 concerning Job Creation, the Government and the Legislation Committee of House of Representative (Baleg DPR RI) held a Working Meeting to discuss the Draft Law (RUU) on the Second Amendment to Law Number 12/2011 concerning Legislation Making (RUU Second Amendment to the Law on Legislation Making), Thursday (7/04).

The preparation of the Draft Law for the Second Amendment to the Law on Legislation Making was initiated by the DPR RI. In addition, another follow-up to the Constitutional Court's decision is a revision of the Job Creation Law and the Court has given a deadline for its completion by maximum of 2 years since the decision was read on November 25th, 2021.

"The Government has the same view as the DPR RI to immediately discuss the bill in question, and for that the Government has seriously studied and discussed the bill, and has compiled a Problem Inventory List (DIM) by involving the relevant Ministries/Institutions and has also invited academics to provide necessary input," said Coordinating Minister for Economic Affairs Airlangga Hartarto on behalf of the President of the Republic of Indonesia when delivering the Government's Explanation Points Regarding the Problem Inventory List on the Draft Law on the Second Amendment to Law Number 12/2011 concerning Legislation Making in the Legislation Committee of House of Representative.

There are at least six Ministers/Heads of Institutions who are actively involved in the preparation of the Problem Inventory List of the Bill, such as The Coordinating Minister for Political, Legal, and Security Affairs, the Minister of Law and Human Rights, the Minister of State Secretariat, the Minister of Finance, the Minister of Home Affairs, and Cabinet Secretary.

The Government has also observed the content or substance of the Second Amendment to the Law on Legislation Making which was submitted by the DPR RI to the Government.

Based on these substances, the Government has compiled a total of 362 DIMs, consisting of 210 permanent DIMs, 24 DIMs with changes in substance, 17 new DIMs, 64 editorial changes in DIMs, and 47 deleted DIMs.

"The completion of the Bill on Amendment to Law Number 12/2011 is expected to be completed and agreed upon soon, as the basis for drafting the Job Creation Law, so hopefully it can accelerate the recovery of the national economy, which is currently facing many challenges from global dynamic," concluded Coordinating Minister Airlangga. (ag/fsr/mhm)

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Head Bureau of Communications, Information Services, and Meetings
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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