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The President issued a Government Regulation in Lieu of Law
(Peraturan Pemerintah Pengganti Undang-undang or
“Perppu” in short) No. 2 of 2022 dated December 30, 2022
regarding Job Creation (“Perppu Job Creation”). Perppu
Job Creation is effective as of December 30, 2022. After this,
Perppu Job Creation must be submitted to the Parliament at its next
hearing for the Parliament’s approval. If the Parliament
rejects Perppu Job Creation, then Perppu Job Creation is
cancelled.
Perppu Job Creation contains over 1,000 pages. We set out below
a preliminary brief information about Perppu Job Creation.
- Perppu Job Creation Replaces Job Creation Law
Perppu Job Creation expressly repeals and replaces Law No. 11 of
2020 dated November 2, 2020 regarding Job Creation (the “Job
Creation Law”). From our quick read of Perppu Job Creation, it
contains similar contents like those of the Job Creation Law. Over
the course of the next few weeks, we will circulate updates
regarding Perppu Job Creation.
- All Licenses, Permits, and Certificates Issued under Job
Creation Law Continue to be Valid
Perppu Job Creation expressly states that all licenses, permits
and certificates issued under the Job Creation Law continue to be
valid until their respective expiry dates, if any. The official
elucidation of Perppu Job Creation provides examples of
certificates, including halal certificates and feasibility
certificates.
- All Implementing Regulations Issued under Job Creation Law
Continue to be Valid
Perppu Job Creation expressly states that all implementing
regulations issued under the Job Creation Law continue to be valid
unless they contradict Perppu Job Creation. We are now reviewing
and determining which implementing regulations under the Job
Creation Law that may be affected by this provision.
- All Business Entities Established under Job Creation Law
Continue to be Valid
Perppu Job Creation expressly states that all business entities
established under the Job Creation Law continue to be valid until
their respective expiry dates, if any.
- Pending Licenses and Permits Subject to Perppu Job
Creation
Perppu Job Creation expressly states that all pending licenses
and permits will be processed under Perppu Job Creation.
- Actions by Authorities under Job Creation Law Ratified
Perppu Job Creation expressly states that any and all actions of
the Central Government, the Regional Governments, and/or any other
governmental bodies taken under the Job Creation Law remain valid
and effective provided such actions are consistent with good
government governance. In our view, this is consistent primarily
with the issuance of all licenses and permits by the relevant
authorities.
As noted, we continue to review Perppu Job Creation and how it
may affect businesses in general. We will send the follow-up
updates in due course.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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