20 December 2021

On 25 November 2021, the Indonesia Constitutional Court decided on 12 separate challenges brought by different groups concerning the ground breaking Omnibus Law on Job Creation (Law No. 11 of 2020) that significantly impacted some 78 different laws and came into force on 2 November 2020 (“Omnibus Law”).

The Constitutional Court (by a majority of five to four) rejected 11 of the 12 challenges and partially accepted certain challenges concerning the formation of the Omnibus Law, as set out in Decision Number 91/PUU-XVIII/2020
(“CC Decision”), resulting in the Constitutional Court declaring that:

  • the Omnibus Law “formation process” is contrary to the 1945 Constitution, but the Omnibus Law will continue to be valid and binding if the legislators can correct the formation process issue within two years of the CC Decision;
  • if the legislators fail to make the corrections within the two-year period, the Omnibus Law will become permanently unconstitutional and therefore will have no legally binding force, and the laws that were revoked or amended under the Omnibus Law will be automatically reinstated; 
  • the Government is not permitted to issue any new regulations in relation to the Omnibus Law; and 
  • all “strategic and significant-impact actions/policies” in relation to the Omnibus Law are suspended.

This is an extract of an article by Soemadipradja & Taher, our network firm in Indonesia. To read the full article from the Soemadipradja & Taher website www.soemath.com, please click here