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Airlangga says Perpu on Job Creation accommodates workers' demand

Tempo - December 30, 2022

Moh. Khory Alfarizi, Francisca Christy Rosana, Jakarta – Coordinating Minister for the Economy Airlangga Hartarto said that the government will accommodate demands voiced by trade unions or workers in a regulation in lieu of law or Perpu on job creation.

"The [trade] unions request outsourcing to be limited to certain sectors and we follow it. Previously, [outsourcing] exists in all sectors, it will only exist in certain sectors later," said Airlangga in a virtual press conference on Friday, December 30, 2022.

Airlangga said that detailed provisions regarding outsourced workers will be regulated in government regulation as a derivative of the Perpu.

In addition, Airlangga claimed that the Perpu accommodate workers' requests for wages. Elements of inflation, economic growth, and people's purchasing power based on different regions will be included in the calculation of wages. "So there will be an index," said the Golkar Party chairman.

Airlangga stated that the government had discussed the issuance of Perpu with stakeholders and hoped that it would provide legal certainty for the businesses.

"Businesses have been on wait and see to confirm legal certainty and the Job Creation Law," Airlangga added.

President Joko "Jokowi" Widodo officially passed Government Regulation in Lieu of Law (Perpu) No. 2 of 2022 concerning Job Creation on Friday, December 30, 2022.

Previously, the Constitutional Court's ruling declared that the Job Creation Law No. 11 of 2020 was formally flawed and so conditionally unconstitutional. The government and DPR were ordered to amend it within two years.

Source: https://en.tempo.co/read/1673989/airlangga-says-perpu-on-job-creation-accommodates-workers-deman