The Indonesian Government has recently issued the Regulation in Lieu of Law No. 2 of 2022 on Job Creation dated 30 December 2022 (“Perppu No. 2/2022”), which revokes and replaces Law No. 11 of 2020 on Job Creation (“UU No. 11/2020“) following the Constitutional Court ruling ordering the government to amend parts of the UU No. 11/2020 within two years.
Summarized hereinbelow are some significant amendments to several laws as regulated under Perppu No. 2/2022:
– Law No. 13 of 2003 on Manpower. Perppu No. 2/2022 stipulates several significant changes from UU No. 11/2020 such as the restriction of certain type of work in an outsourcing arrangement which specifics however, are intended to be further set out in a Government Regulation (Article 64). Furthermore, certain rules on minimum wage are also introduced and/or clarified, such as in respect to the required variables and/or required structures/wage scale in determining the minimum wage as well as the wage of workers who have been employed for one (1) year or more (Article 88D and Article 92);
– Law No. 5/1999 on the Prohibition of Monopolistic and Unfair Business Competition Practices. Perppu No. 2/2022 stipulates that the Commission’s decision to examine certain business actors who are suspected of carrying out monopolistic practices and/or unfair business competition has permanent legal force if there is no objection, where accordingly a writ of execution shall be requested from the Commercial Court (Article 46);
– Law No. 33/2014 on Halal Product Guarantees. Perppu No. 2/2022 changes the arrangements for the procedure for granting halal status, especially on the roles and dynamics between the various government agencies and institutions involved, including the establishment of the Halal Fatwa Committee (Articles 5,7,10A,32,33 and 52A);
– Law No. 36/2009 on Health. Perppu No. 2/2022 expands the scope of Business Licensing provisions related to pharmaceutical preparations and medical devices, which will be addressed under a forthcoming Government Regulation (Article 106(4)).
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