2023 Omnibus Law on Job Creation
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| Job Creation Act 2023 Undang-Undang Cipta Kerja 2023 | |
|---|---|
 | |
| People's Representative Council | |
| |
| Citation | Lembaran Negara Republik Indonesia 2023, 41; Tambahan Lembaran Negara Republik Indonesia 6856 |
| Passed by | House of Representatives |
| Passed | 21 March 2023 |
| Commenced | 31 March 2023 |
| Legislative history | |
| Introduced | 30 November 2022 |
| Repeals | |
| Omnibus Law on Job Creation Staatsblad No. 226 of 1926 juncto Staatsblad No. 450 of 1940 (On Nuisance Permit) | |
| Amended by | |
| Law No. 3/2024 (On Second Amendment of Village Law, Law No. 6/2014) Law No. 63/2024 (On Third Amendment of Indonesian Immigration Law, Law No. 6/2011) Law No. 65/2024 (On Third Amendment of Indonesian Patent Law, Law No. 13/2016) Law No. 66/2024 (On Third Amendment of Indonesian Shipping Law, Law No. 17/2008) | |
| Status: In force | |
The 2023 Omnibus Law on Job Creation, officially the Act No. 6 of 2023 On the Enaction of Government Regulation in Lieu of Act No. 2 of 2022 On Job Creation into Act (Indonesian: Undang-Undang Nomor 6 Tahun 2023 Tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 Tentang Cipta Kerja Menjadi Undang-Undang) is an Indonesian act which made the Government Regulation in Lieu of Act (Perpu) No. 2 of 2022 On Job Creation, a replacement of the Omnibus Law on Job Creation, permanent (the entirety of the Perpu is set as a schedule to the Act). The law was passed by the People's Representative Council on 21 March 2023.[1] The law commenced on 31 March 2023.[2]
After the Omnibus Law on Job Creation declared "conditionally unconstitutional", Joko Widodo administration issued Government Regulation in Lieu of Law No. 2/2022 as temporary replacement of the law on 30 November 2022.[1] by the Indonesian Constitution, any Government Regulation in Lieu of Law should be made into law if the law made into the permanent one.[3]
Controversial Articles
Flexibility on Outsourcing
Article 64 of the law granted flexibility to the companies to outsource their manpower, which labour unions disliked.[4]
No Long Leave Rights
Article 79 and 84 of the law revoking mandatory rights for the workers to take leave outside leave regulated by the law such as annual leave, weekly leave, and resting. Long leave is not a mandatory, but companies are granted to create their own regulations for long leave outside the law regulated.[4]
On Minimum Wages
Article 88C, 88D, and 88F granted central and provincial government to establish indexing to establish minimum wages applicable to provincial and regency/city level. Labour unions accused that these would ease formulation of formula to establish cheap wage.[4]