The President issued a Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-undang or "Perppu" in short) No. 2 of 2022 dated December 30, 2022 regarding Job Creation ("Perppu Job Creation"). Perppu Job Creation is effective as of December 30, 2022. After this, Perppu Job Creation must be submitted to the Parliament at its next hearing for the Parliament's approval. If the Parliament rejects Perppu Job Creation, then Perppu Job Creation is cancelled.
Perppu Job Creation contains over 1,000 pages. We set out below a preliminary brief information about Perppu Job Creation.
- Perppu Job Creation Replaces Job Creation Law
Perppu Job Creation expressly repeals and replaces Law No. 11 of 2020 dated November 2, 2020 regarding Job Creation (the "Job Creation Law"). From our quick read of Perppu Job Creation, it contains similar contents like those of the Job Creation Law. Over the course of the next few weeks, we will circulate updates regarding Perppu Job Creation.
- All Licenses, Permits, and Certificates Issued under Job Creation Law Continue to be Valid
Perppu Job Creation expressly states that all licenses, permits and certificates issued under the Job Creation Law continue to be valid until their respective expiry dates, if any. The official elucidation of Perppu Job Creation provides examples of certificates, including halal certificates and feasibility certificates.
- All Implementing Regulations Issued under Job Creation Law Continue to be Valid
Perppu Job Creation expressly states that all implementing regulations issued under the Job Creation Law continue to be valid unless they contradict Perppu Job Creation. We are now reviewing and determining which implementing regulations under the Job Creation Law that may be affected by this provision.
- All Business Entities Established under Job Creation Law Continue to be Valid
Perppu Job Creation expressly states that all business entities established under the Job Creation Law continue to be valid until their respective expiry dates, if any.
- Pending Licenses and Permits Subject to Perppu Job Creation
Perppu Job Creation expressly states that all pending licenses and permits will be processed under Perppu Job Creation.
- Actions by Authorities under Job Creation Law Ratified
Perppu Job Creation expressly states that any and all actions of the Central Government, the Regional Governments, and/or any other governmental bodies taken under the Job Creation Law remain valid and effective provided such actions are consistent with good government governance. In our view, this is consistent primarily with the issuance of all licenses and permits by the relevant authorities.
As noted, we continue to review Perppu Job Creation and how it may affect businesses in general. We will send the follow-up updates in due course.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.