Upon the issuance of Law Number 11 of 2020 on Job Creation ("Job Creation Law"), there have been major changes in various regulations in Indonesia, especially in the Manpower sector. Although Job Creation Law has been declared "unconstitutional" under Constitutional Court Decision No. 91/PUU-XVIII/2020 dated 25 November 2021 ("Constitutional Court Decision 91"), it shall be deemed legal for the next 2 (two) years to avoid legal uncertainty. And in the interest of the public, the previous law (Manpower Law) shall be re-enacted if the legislators fail to complete the scheduled improvements and/or revisions as instructed by the Constitutional Court, based on Constitutional Court Decision 91.
Notwithstanding the enactment of Constitutional Court Decision 91, Job Creation Law has amended a noteworthy number of provisions under Law No. 13 of 2003 on Manpower ("Manpower Law"), which has never been amended since its application on 25 March 2003. Up to the publication of this article, these amendments have been followed by issuance of various implementing regulations including Government Regulation Number 34 of 2021 on the Utilization of Foreign Workers ("GR 34/2021"), effective as of 1 April 2021. GR/34 2021 regulates the framework for foreign manpower (Tenaga Kerja Asing or "TKA") in the process of job placements by the employers. Despite the Constitutional Court judgement, the matters regulated by GR 34/2021 and Job Creation Law are still effective.
In this article, we provide...
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