This Newsflash is a continuation of our previous Newsflash with respect to the issuance of a Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang or Perppu) No. 2 of 2022 dated December 30, 2022, regarding Job Creation (the "Perppu Job Creation"). Perppu Job Creation expressly repeals and replaces Law No. 11 of 2020 dated November 2, 2020, regarding Job Creation (the "Job Creation Law").
This Newsflash discusses the latest amendment to the Investment Law (Law No. 25 of 2007 dated April 26, 2007, on Investment Law) and restatement of the Company Law (Law No. 40 of 2007 dated August 16, 2007, on Company Law) in accordance with the Perppu Job Creation. In light of the foregoing, the amendments to the Company Law and the Investment Law under the Job Creation Law are no longer in effect.
Investment Law
As for the Investment Law, the Perppu Job Creation only makes a minor amendment under the Investment Law.
Article 13 of the Investment Law under the Perppu Job Creation deletes 1 (one) paragraph regarding the protection and empowerment of (i) cooperatives; and (ii) micro, small, and medium enterprises by the central government and/or regional government according to their authority based on norm, standard, procedure, and criteria set by the central government.
Other than the above, the Perppu Job Creation only restates the amended Investment Law provisions under the Job Creation Law.
Please see our Newsflash on Amendments to Investment Law under the Job Creation Law in this link: https://aksetlaw.com/news-event/newsflash/changes-to-investment-law-under-omnibus-law/.
Company Law
Unlike the amendment to the Investment Law, the Perppu Job Creation does not introduce any amendment with respect to the provisions under the Company Law other than those amended by the Job Creation Law. In this respect, the Perppu Job Creation only restates the amended Company Law provisions under the Job Creation Law. Therefore, the amended Company Law provisions under the Perppu Job Creation remain the same as the amended Company Law provisions under the Job Creation Law.
Please see our Newsflash on Amendments to Company Law under the Job Creation Law in this link: https://aksetlaw.com/news-event/newsflash/omnibus-law-amends-provisions-under-company-law-to-empower-micro-small-and-medium-business/.
February 10, 2023
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