Employers and Workers Question Perppu

Both employers and workers are questioning a change in the substance of the employment cluster in Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 on Job Creation.

KOMPAS/HERU SRI KUMORO

Commuterline KRL train passengers, the majority of whom are workers in both the formal and informal sectors, leave Sudirman Station, Jakarta, Wednesday (4/1/2022). The issuance of Government Regulation in Lieu of Law or Perppu Number 2 of 2022 concerning Job Creation has caused polemics both by workers and employers.

JAKARTA, KOMPAS — The issuance of Regulation in Lieu of Law (Perppu) No. 2/2022 on Job Creation has sparked a polemic. In addition to the reasons for the coercive urgency that underlay its issuance, some substances have also given rise to pros and cons.

Workers and employers have questioned changes made to the “cluster” of provisions on employment. The Indonesian Employers' Association (Apindo) has highlighted differences in the formula for calculating minimum wage and employment outsourcing compared to the provisions in Law No. 11/2020 on Job Creation. The changes are deemed to have a potential to disrupt the investment climate.