Association Pushes for Improvement of Derivative Regulations of the Job Creation Law

The Indonesian Textile Association (Asosiasi Pertekstilan Indonesia - “API”) revealed that there are a number of derivative regulations from Law Number 6 of 2023 the Enactment of Regulation of the Government in Lieu of Law Number 2 of 2022 on Job Creation (“Job Creation Law”), which have not properly translated the mandate of the law.

API Deputy Chair Anne Patricia Sutanto identified 32 regulations, ranging from Government Regulations to Regional Regulations, that hinder business activities in Indonesia. According to her, the existence of these regulations affects the level of compliance of business actors with all existing licensing requirements.

“What we really care about is not the licensing issue itself, but how the government strengthens the licensing process. Because if the licensing process is expensive, cumbersome, and unclear in terms of timing, how can the industry function?” Anne told Hukumonline.

Based on the identification results, API recommends several steps that the government should take, including bureaucratic streamlining, deregulation, cost reductions, and procedural simplifications. The licensing sectors identified by API include: 1) Environment and waste management; 2) Buildings and Transportation; 3) Basic Utilities; 4) Occupational Safety and Health; and 5) Others.