The Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation ("Perppu on Job Creation") issued and enacted on 30 December 2022 is intended to act as a substitute for Law No. 11 of 2020 on Job Creation ("Job Creation"). The primary purpose of Perppu on Job Creation is to provide temporary measures to address pressing legal and social issues due to the mandate of Constitutional Court Decision No. 91/PUU-XVIII/2020 ("Constitutional Court Decision") which declared the Job Creation Law as "conditionally unconstitutional" and shall be corrected and/or amended within the 2 years after the issuance of the Constitutional Court Decision.
I. GENERAL OVERVIEW
In essence, the enactment of the Perppu on Job Creation accommodates the same provisions as Job Creation Law, related to:
- enhancing the investment ecosystem and business activities;
- increasing the protection and welfare of workers;
- facilitation, empowerment, and protection of Cooperatives and Micro, Small, and medium-scale business ("MSME"); and
- increasing government investment and accelerating national strategic projects
This article will focus on the amendments made by the Perppu on Job Creation within investment, competition, and MSME sectors.
The Perppu on Job Creation introduced several amendments to the following existing law:
- Law No. 5 of 1999 on the Prohibition of Monopolistic and Unfair Business Competition Practices ("Competition Law");
- Law No. 25 of 2007 on Investment ("Investment Law");
- Law No. 20 of 2008 on Micro, Small, and Medium-Scale Businesses ("MSME Law");
Additionally, amendments of laws listed above will not deemed its implementing regulations invalid unless the implementing regulations are in contradiction with the Perppu on Job Creation.
As listed above no amendment was made to Article 46 under the Job Creation Law which stated that the execution order is the authority of the District Court. However, the Job Creation Law introduced in Article 44 and Article 45 that the authority of the District Court to examine objections raised against the Business Competition Supervisory Commission's ("KPPU") decision had transferred to the Commercial Court.
On the other hand, the Perppu on Job Creation amends Article 46 to be in line with Circular of The Supreme Court No. 1 of 2021 on Transfer Of Examination Of Objections To The Decision Of The Business Competition Supervisory Commission To The Commercial Court ("SEMA 1/2021") which stated the Commercial Court, in accordance with the authority granted by law, is to receive, examine and adjudicate cases of objections to the decisions of KPPU as of 2 February 2021.
Further, the procedures for filing and examination of objections are regulated in Regulation of The Supreme Court No. 3 of 2021 on Procedures for Submission and Examination of Objections to Decisions of the Commission for the Supervision of Business Competition at the Commercial Court ("PERMA 3/2021"), as listed below:
- Objections can only be submitted by the Reported Party and KPPU is the respondent.
- Examination of objections is carried out on formal aspects and/or materially based on a copy of the KPPU's decision and case files.
- Objections are submitted to the Registrar's Office of the Commercial Court or administration of electronic cases in accordance with the System Court Information.
- Examination of objections is carried out without going through a process mediation.
- With the approval of the panel of judges, the applicant for objection may submit witnesses or experts who have previously been submitted to an examination at the KPPU provided that their statement is not included or is not considered in the KPPU's decision or their attendance is refused to provide information. KPPU may also submit witnesses or experts who have been examined to strengthen their arguments.
- The applicant cannot submit evidence of letters and/or documents.
- The examination is carried out in the shortest possible time 3 (three) months and a maximum of 12 (twelve) months. In the event that the examination is done less than 3 (three) months, the panel of judges can declare the decision with the considerations.
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