Government Issues End-of-Year Surprise: Perppu on Job Creation

On 30 December 2022, the Indonesian Government issued Regulation of the Government in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang–“ Perppu ”) No. 2 of 2022 on Job Creation (“ Perppu 2/2022 ”), which revokes the short-lived Law No. 11 of 2022 on Job Creation (“ Law 11/2020 ”). [1] The government claims that Perppu 2/2022 has been issued in an effort to anticipate the various economic and geopolitical challenges posed by current global dynamics and that the new framework is in line with the mandate to revise Law 11/2020 before November 2023, [2] as stipulated under Decision of the Constitutional Court No. 91/PUU-XVIII/2020 . [3]