The Government of Indonesia enacted Government Regulation in Lieu of Law (Perpu) Number 2 of 2022 concerning Job Creation on December 30, 2022. The Government asserted the Regulations in question answered the urgent need to anticipate and mitigate global economy conditions: recession, rising inflation, then the threat of stagflation. Some argue that the urgent need is not in line with the fundamental principle of emergency regulations (regulations that substitute law enacted solely by the President) which is the event of a pressing emergency that hinder the House of Representative to propose and discuss bill (of law). Further, trade union/s assert that Perpu No 2 of 2022 hampers the spirit of dialogue and discussion in laws and the derivative regulations making process. Even though, related the Job Creation Act No. 11 of 2020, the decision of the Constitutional Court (MK) ordered the involvement of the community/civil society in the re-discussion of the Job Creation Law and its operational regulations.
Article 185 of the Perpu No. 2 of 2022 stipulates that with the enactment of this Regulations, Law Number 11 of 2020
regarding Job Creation (State Gazette of the Republic of Indonesia Year 2020 Number 245, Supplement to the State Gazette Republic of Indonesia Number 6573), is revoked and declared as not applicable.