English | 中文 | 下载审德中文简介 

Hotline +62-812-8702-3281

Jan

09

Replacement of the Previous Job Creation Law in Indonesia

Law Number 11 of 2020 on Job Creation (“Law 11/2020”) was ratified on 2nd November 2020 as the applicable regulation in Indonesia. However, the implementation of Law 11/2020 became ineffective right after Indonesian Constitutional Court (“MK”), through MK Decision Number 91/PUU-XVIII/2020, deemed Law 11/2020 as conditionally unconstitutional. To tackle this concern, Indonesia’s government contrived Indonesia Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation (“GR 2/2022”). With the enactment of GR 2/2022, Law 11/2020 is revoked. GR 2/2022 provides legal certainty regarding the continuation of Law 11/2020, thus providing confidence and reliance when it comes to investing in Indonesia.

GR 2/2022 is ratified under several considerations, of which the main consideration is the implementation of MK Decision Number 91/PUU-XVIII/2020 and the threats of economic slowdown and inflation. There are special requirements to enact a Government Regulation in Lieu of Law, in accordance with MK Decision Number 138/PUU-VII/2009, the enactment of a Government Regulation in Lieu of Law must meet these stated requirements:

  1. The urgent need to solve a legal matter rapidly;
  2. The law needed has not been enacted or has been enacted but it is inadequate;
  3. There is a legal vacuum which cannot be overcome by enacting a law using the usual procedure, which takes a long time, while the urgent matter needs to be solved.

GR 2/2022 also complements several Law 11/2020 provisions, of which those provisions include a minimum wage provision, outsourcing, water resources and the adjustment to Law Number 7 of 2021 on Harmonization of Tax Regulations and Law Number 1 of 2022 on Financial Relation between Central Government and Local Government. GR 2/2022 shall have an impact on foreign investment in Indonesia. Despite the current uproar by the public regarding certain provisions stipulated under GR 2/2022, this Government Regulation in Lieu of Law must first be ratified by the House of Representatives.

If you, a prospective client, have further inquiries about the topic explained above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled a lot of similar matters, with many experienced and professional civil lawyers and dispute lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author: Suryani Lim

Recent Posts

Let Us Be Your Guide.
Our thorough understanding of local culture
ensures that your business will be in compliance
with all laws and regulations and receive
a warm welcome in the community.

Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Our Service

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.
Read More