2023 Omnibus Law on Job Creation
{{Short description|Indonesian legislation}}
{{Infobox legislation
| short_title = Job Creation Act 2023
Undang-Undang Cipta Kerja 2023
| image = National emblem of Indonesia Garuda Pancasila.svg
| imagesize = 100px
| legislature = People's Representative Council
| long_title = 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
| territorial_extent =
| enacted_by = House of Representatives
| date_passed = 21 March 2023
| date_enacted =
| date_assented =
| date_commenced = 31 March 2023
| bill =
| bill_citation =
| bill_date = 30 November 2022
| introduced_by =
| 1st_reading =
| 2nd_reading =
| 3rd_reading =
| amends =
| repeals = Omnibus Law on Job Creation
Staatsblad No. 226 of 1926 juncto Staatsblad No. 450 of 1940 (On Nuisance Permit)
| amended_by = Law No. 3/2024 (On Second Amendment of Village Law, Law No. 6/2014)
Law No. 63/2024 (On Third Amendment of Indonesian Immigration Law, Law No. 6/2011)
Law No. 65/2024 (On Third Amendment of Indonesian Patent Law, Law No. 13/2016)
Law No. 66/2024 (On Third Amendment of Indonesian Shipping Law, Law No. 17/2008)
| summary =
| keywords =
| status = in force
}}
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 ({{langx|id|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.{{Cite web |last=Febriyan |date=2023-03-21 |title=DPR Sahkan Perpu Cipta Kerja Menjadi UU, Ini 3 Potensi Bahayanya Menurut Pakar |url=https://nasional.tempo.co/read/1705360/dpr-sahkan-perpu-cipta-kerja-menjadi-uu-ini-3-potensi-bahayanya-menurut-pakar |access-date=2023-03-22 |website=Tempo |language=en}} The law commenced on 31 March 2023.{{Cite web |date=2023-03-31 |title=Undang - Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 Tentang Cipta Kerja Menjadi Undang-Undang |url=https://jdih.setkab.go.id/PUUdoc/176946/Salinan_UU_Nomor_6_Tahun_2023.pdf |access-date=2023-04-04}}
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. by the Indonesian Constitution, any Government Regulation in Lieu of Law should be made into law if the law made into the permanent one.{{Cite web |last=Kementerian Koordinator Bidang Perekonomian Republik Indonesia |title=RUU Penetapan Perpu Cipta Kerja Resmi Disetujui DPR RI untuk Ditetapkan Menjadi Undang-Undang |url=https://www.ekon.go.id/publikasi/detail/5049/ruu-penetapan-perpu-cipta-kerja-resmi-disetujui-dpr-ri-untuk-ditetapkan-menjadi-undang-undang |access-date=2023-03-22 |website=Kementerian Koordinator Bidang Perekonomian Republik Indonesia |language=id}}
Controversial Articles
= Flexibility on Outsourcing =
Article 64 of the law granted flexibility to the companies to outsource their manpower, which labour unions disliked.{{Cite web |last=Ramadhan |first=Fitra Moerat |date=2023-01-09 |title=Pasal-pasal yang Merugikan Buruh dalam Perpu Cipta Kerja |url=https://grafis.tempo.co/read/3199/pasal-pasal-yang-merugikan-buruh-dalam-perpu-cipta-kerja |access-date=2023-03-22 |website=Tempo |language=en}}
= No Long Leave Rights =
= On Minimum Wages =
Reactions
= Government side =
Coordinating Minister for Economic Affairs, Airlangga Hartarto, expected the investment to come easily after the law's passage.{{Cite web |last=Fadilah |first=Ilyas |title=UU Ciptaker Disahkan DPR, Airlangga PD Investasi Makin Deras |url=https://finance.detik.com/berita-ekonomi-bisnis/d-6630924/uu-ciptaker-disahkan-dpr-airlangga-pd-investasi-makin-deras |access-date=2023-03-22 |website=detikfinance |language=id-ID}}
Japanese businessmen and industrialists welcomed the passage of the law positively, as Japan External Trade Organization reported.{{Cite web |last=Widyastuti |first=Rr Ariyani Yakti |date=2023-03-22 |title=Suharso Beberkan Survei JETRO soal Optimistme Pengusaha Jepang di RI dan Dampak UU Cipta Kerja |url=https://bisnis.tempo.co/read/1705811/suharso-beberkan-survei-jetro-soal-optimistme-pengusaha-jepang-di-ri-dan-dampak-uu-cipta-kerja |access-date=2023-03-22 |website=Tempo |language=en}}
= Opposition =
Prior to the passing of the law, Indonesian labor unions, motorized by the Labour Party, threatened to start nationwide strikes to bring total collapse to the Indonesian economy if the law passed and vowed to commit "jihad" against the government and law.{{Cite web |last=Oktafian |first=Ilham |title=Demo Tolak Perpu Ciptaker di Depan DPR, Buruh Ancam Mogok Nasional |url=https://news.detik.com/berita/d-6616067/demo-tolak-perpu-ciptaker-di-depan-dpr-buruh-ancam-mogok-nasional |access-date=2023-03-22 |website=detiknews |language=id-ID}} Opposition parties the Democratic Party and the Prosperous Justice Party, rejected the law passage.{{Cite web |date=2023-03-21 |title=Alasan Demokrat dan PKS Tolak Pengesahan Perppu Cipta Kerja Jadi UU |url=https://kabar24.bisnis.com/read/20230321/15/1639405/alasan-demokrat-dan-pks-tolak-pengesahan-perppu-cipta-kerja-jadi-uu |access-date=2023-03-22 |website=Bisnis.com |language=id}}{{Cite web |last=Tjitra |first=Andry Triyanto |date=2023-03-21 |title=PKS dan Demokrat Tolak Pengesahan Perpu Cipta Kerja Jadi Undang-Undang |url=https://nasional.tempo.co/read/1705413/pks-dan-demokrat-tolak-pengesahan-perpu-cipta-kerja-jadi-undang-undang |access-date=2023-03-22 |website=Tempo |language=en}}{{Cite web |date=2023-03-21 |title=DPR Sahkan Perppu Cipta Kerja Jadi UU: Demokrat Tolak, PKS Walkout |url=https://republika.co.id/share/rrv1u5409 |access-date=2023-03-22 |website=Republika Online |language=id}} Despite now being in coalition with the opposition, the Nasdem Party, however, supported the passage of the law.{{Cite web |last=Tjitra |first=Andry Triyanto |date=2023-03-22 |title=NasDem Beda Pandangan dengan PKS dan Demokrat Soal Pengesahan UU Cipta Kerja |url=https://nasional.tempo.co/read/1705601/nasdem-beda-pandangan-dengan-pks-dan-demokrat-soal-pengesahan-uu-cipta-kerja |access-date=2023-03-22 |website=Tempo |language=en}}
Motorized by the Labour Party, as the law's passage becomes fruition, 5 million laborers across more than 100 100,000 companies will proceed to start a nationwide strike campaign from July to August 2023 to halt production of every goods produced.{{Cite web |last=Silaban |first=Martha Warta |date=2023-03-21 |title=Tolak UU Cipta Kerja, 5 Juta Buruh di 100 Ribu Pabrik Bakal Mogok Nasional |url=https://bisnis.tempo.co/read/1705456/tolak-uu-cipta-kerja-5-juta-buruh-di-100-ribu-pabrik-bakal-mogok-nasional |access-date=2023-03-22 |website=Tempo |language=en}} They will also hold sporadic weekly protests at the People's Representative Council and government institutions while filing judicial reviews to the Constitutional Court.{{Cite web |last=Silaban |first=Martha Warta |date=2023-03-21 |title=Tolak UU Cipta Kerja, Buruh Bakal Lakukan Judicial Review ke MK dan Demo Tiap Pekan di DPR |url=https://bisnis.tempo.co/read/1705436/tolak-uu-cipta-kerja-buruh-bakal-lakukan-judicial-review-ke-mk-dan-demo-tiap-pekan-di-dpr |access-date=2023-03-22 |website=Tempo |language=en}}
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.{{Cite web |last=Saputra |first=Andi |title=MK Tolak Gugatan Buruh soal Perppu Ciptaker |url=https://www.detik.com/sumbagsel/hukum-dan-kriminal/d-6961508/mk-tolak-gugatan-buruh-soal-perppu-ciptaker |access-date=2023-10-03 |website=detiksumbagsel |language=id-ID}}
However, the Manpower Cluster of the law was later deemed unfair by the Constitutional Court. On 31 October 2024, through Constitutional Court Decision No. 168/PUU-XXI/2023, the Constitutional Court decided to order the separation of the Manpower Cluster into a separate law, separated from the Omnibus Law. The Constitutional Court ordered the government to revise the law within 2 years.{{Cite web |last=Mantalean |first=Vitorio |last2=Ramadhan |first2=Ardito |date=2024-10-31 |title=Poin-poin Penting Putusan MK atas UU Cipta Kerja, dari soal Upah hingga PHK |url=https://nasional.kompas.com/read/2024/11/01/05244411/poin-poin-penting-putusan-mk-atas-uu-cipta-kerja-dari-soal-upah-hingga-phk?page=all |access-date=2025-03-06 |website=Kompas |language=id}}{{Cite web |last=Kamil |first=Irfan |last2=Ihsanudin |date=2024-10-31 |title=MK Minta DPR dan Pemerintah Susun UU Ketenagakerjaan Baru Paling lama 2 Tahun |url=https://nasional.kompas.com/read/2024/10/31/18171871/mk-minta-dpr-dan-pemerintah-susun-uu-ketenagakerjaan-baru-paling-lama-2 |access-date=2025-03-06 |website=Kompas |language=id}}