Law No. 11 of 2020 on Job Creation brought a historical change for Indonesia in many industries. However, the enforcement has triggered a controversial response from communities and stakeholders, including how the Job Creation Law was formulated. The response entails the Indonesian Constitutional Court establishing a decision on thnecessityry to make improvements by replacing Law Number 11 in the Year 2020 on Job Creation. It was decided through the Constitutional Court Decision Number 91/PUU-XVIII/2020.

The Constitutional Court Decision Number 91/PUU-XVIII/2020 mandates the urge for the change of Indonesia's Job Creation Law. After 3 years of implementation, the change is finally made applicable to the public through the establishment of Law No. 6 of 2023 on Stipulation of Government Regulation in lieu of Law Number 2 of 2022 on Job Creation to become Law, furtherly referred to as the 2023 Indonesian Job Creation Law. The Law is officially enforced since 31 March 2023.

What Indonesian government would like to achieve through the establishment of the 2023 Indonesian Job Creation Law?

Mainly, the Indonesian government aims for the Law to be able to absorb the widest possible Indonesian workforce amid increasingly competitive competition and demands for an economic epidemic as well as challenges and a global economic crisis that can disrupt the economy. The adjustment to various regulatory aspects is needed to facilitate, protect and empower the cooperation, including the micro, small and medium enterprises.

In the business sector, the Indonesian government expects more improvement in investment and acceleration of national strategic projects, including increasing the protection and welfare of workers. The previous sectoral laws were considered to be unable to meet the legal requirements to synchronize, accelerate and guarantee the realization of work creation. Hence, the Indonesian Job Creation Law has been established to embrace the change in the Indonesian economic climate, in a more comprehensive method.

The global dynamics caused by rising energy and food prices, climate change, and supply chain disruptions have caused a decline in world economic growth and an increase in inflation. Those reasons affect the Indonesian government's decision to establish a policy that could increase national competitiveness and attractiveness for investment through economic transformation contained in the Job Creation Law.

What are the laws affected by the latest update of the 2023 Indonesian Job Creation Law?

Here, we list down the list of recent laws affected by the implementation of the 2023 Indonesian Job Creation Law.

1. Law No. 22 of 2019 on Sustainable Agricultural Cultivation Systems

2. Law No. 11 of 2019 on the National System of Science and Technology

3. Law No. 2 of 2017 on Construction Services

4. Law No. 18 of 2017 on the Protection of Indonesian Migrant Workers

5. Law No. 20 of 2016 on Trademark and Geographical Indications

6. Law No. 13 of 2016 on Patents

7. Law No. 9 of 2015 on Second Amendment to Law Number 23 of 2014 on Regional Government

8. Law No. 6 of 2014 on Villages

9. Law No. 41 of 2014 on Amendments to Law Number 18 of 2009 on Livestock and Animal Health

10. Law No. 39 of 2014 on Plantations

11. Law No. 33 of 2014 on Halal Product Assurance

12. Law No. 32 of 2014 on Marine Affairs

13. Law No. 30 of 2014 on Government Administration

14. Law No. 21 of 2014 on Geothermal

15. Law No. 1 of 2014 on Amendments to Law Number 27 of 2007 on Management of Coastal Zone and Small Islands

16. Law No. 19 of 2013 on Protection and Empowerment of Farmers

17. Law No. 18 of 2013 on Prevention and Eradication of Forest Destruction

18. Law No. 18 of 2012 on Food

19. Law No. 16 of 2012 on the Defense Industry

20. Law No. 6 of 2011 on Immigration

21. Law No. 4 of 2011 on Geospatial Information

22. Law No. 24 of 2011 on Social Security Administering Bodies

23. Law No. 13 of 2010 on Horticulture

24. Law No. 45 of 2009 on Amendments to Law Number 31 of 2004 on Fisheries

25. Law No. 44 of 2009 on Hospitals

26. Law No. 39 of 2009 on Special Economic Zones

27. Law No. 38 of 2009 on POS

28. Law No. 36 of 2009 on Health

29. Law No. 35 of 2009 on Narcotics

30. Law No. 33 of 2009 on Film

31. Law No. 32 of 2009 on Environmental Protection and Management

32. Law No. 30 of 2009 on Electricity

33. Law No. 22 of 2009 on Road Traffic and Transportation

34. Law No. 18 of 2009 on Livestock and Animal Health

35. Law No. 21 of 2008 on Islamic Banking

36. Law No. 20 of 2008 on Micro, Small and Medium Enterprises

37. Law No. 17 of 2008 on Shipping

38. Law No. 40 of 2007 on Limited Liability Companies

39. Law No. 27 of 2007 on Management of Coastal Zone and Small Islands

40. Law No. 26 of 2007 on Spatial Planning

41. Law No. 25 of 2007 on Investment

42. Law No. 23 of 2007 on Railways

43. Law No. 40 of 2004 on the National Social Security System

44. Law No. 38 of 2004 on Roads

45. Law No. 31 of 2004 on Fisheries

46. Government Regulation in Lieu of Law No. 1 of 2004 on Amendments to Law Number 41 of 1999 on Forestry

47. Law No. 19 of 2003 on State-owned Enterprises

48. Law No. 32 of 2002 on Broadcasting

49. Law No. 28 of 2002 on Buildings

50. Law No. 22 of 2001 on Oil and Gas

51. Law No. 36 of 2000 on Stipulation of Government Regulations in lieu of Law Number 1 of 2000 on Free Trade Areas and Free Ports to Become Laws

52. Law No. 37 of 2000 on Stipulation of Government Regulation in Lieu of Law No. 2 of 2000 on Sabang Free Trade Area and Free Port to Become Law

53. Law No. 29 of 2000 on Plant Variety Protection

54. Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition

55. Law No. 41 of 1999 on Forestry

56. Law No. 36 of 1999 on Telecommunications

57. Law No. 10 of 1998 on Amendments to Law Number 7 of 1992 on Banking

58. Law No. 5 of 1997 on Psychotropics

59. Law No. 10 of 1997 on Nuclear Forces

60. Law No. 7 of 1992 on Banking

61. Law No. 25 of 1992 on Cooperatives

62. Law No. 6 of 1983 on General Provisions and Tax Procedures

63. Law No. 3 of 1982 on Compulsory Company Registration

64. Law No. 2 of 1981 on Legal Metrology

65. Law Number 6 of 2017 on Architects

66. Law No. 4 of 2009 on Mineral and Coal Mining

67. Law Number 3 of 2014 on Industry

68. Law No. 7 of 2014 on Trade

69. Law No. 1 of 2011 on Housing and Settlement Areas

70. Law Number 20 of 2011 on Flats

71. Law No. 17 of 2019 on Water Resources

72. Law No. 1 of 2009 on Aviation

73. Law No. 10 of 2009 on Tourism

74. Law Number 8 of 2019 on Organizing of Hajj and Umrah

75. Law No. 2 of 2002 on State Police of the Republic of Indonesia

76. Law No. 13 of 2003 on Manpower

77. Staatsblad of 1926 Number 226 junction Staatsblad of 1940 Number 450 on the Law on Nuisance (Hinder Ordonnantie)

78. Law No. 7 of 1983 on Income Tax

79. Law No. 8 of 1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods

80. Law Number 7 of 2016 on Protection and Empowerment of Fishermen, Fish Cultivators and Salt Farmers

81. Law No. 2 of 2012 on Land Procurement for Development in the Public Interest

82. Law No. 41 of 2009 on Protection of Sustainable Food Agricultural Land

In conclusion, the 2023 Indonesian Job Creation Law creates a significant number of to ccreatea more attractive business environment for the Indonesian government, companies and Employees. The affected industries and stakeholders shall pay attention to the new changes as they affect their business. Furthermore, the further effect of the 2023 Indonesian Job Creation Law would cause more implementing laws, policies and regulations to be enforced in certain industries.

Should you need further consultation on how the 2023 Indonesian Job Creation Law affect your business, we provide comprehensive and personalized guidance for you, including mapping the risk and advice for the applicable solution for your Company.