Investment in Indonesia After Constitutional Court’s Decision in the Review of Job Creation Law
Abstract
In 2021, the Indonesian Constitutional Court decided conditionally unconstitutional in the review of the Job Creation Law. It was among a few decisions made by the Constitutional Court to accept a formal review, even if some dissenting opinions followed it. While the decision has largely influenced a wide array of regulatory laws because the Job Creation Law adopts the omnibus law model, the pivotal issue in this paper rests on the legal basis for investment in Indonesia after this decision. Firstly, it enquired whether the Constitutional Court exceeded its power for a procedural judicial review against the Job Creation Law. Second, it discussed the legal basis for investment in Indonesia after the Constitutional Court's Decision No. 91/PUU-XVIII/2020. Using normative research, the results showed that with the conditional unconstitutional decision, the Indonesian investment world would experience legal uncertainty for the next two years, especially new businesses, licensing, and investments with the enactment of the Job Creation Law. In particular, if the legislative branch failed to improve this law over two years, businesses, licensing, and investments in Indonesia might have no legal basis, resulting in the uncertain situation of the government’s desire to realize the friendly investment.
Keywords: Constituional Court, Job Creation Law, Judicial Review.
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———, Mahkamah Konstitusi, Judicial Review, dan Welfare State (Jakarta: Sekretariat Jenderal dan Kepaniteraan MK RI, 2008).
———, Pengaduan Konstitusional: Upaya Hukum Terhadap Pelanggaran Hak-Hak Warga Negara (Jakarta: Sinar Grafika, 2013).
Jazim Hamidi, Hermeneutika Hukum, Teori Penemuan Hukum Baru dengan Interpretasi Teks (Jakarta: UII Press, 2005).
J Cobbe, “Administrative Law and the Machines of Government: Judicial Review of Automated Public-Sector Decision-Making” (2019) 39:4 Leg Stud 636–655.
Jeffrey A Pojanowski, “Neoclassical Administrative Law” (2020) 133:852 Harvard Law Review 853–919.
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Maria Farida, “Problematika Konsep Diskresi dalam Penyelenggaraan Administrasi Pemerintahan Pasca Undang-Undang Cipta Kerja, Jurnal Ilmiah Hukum dan Hak Asasi Manusia” (2021) 1:1 Jurnal Ilmu Hukum dan Hak Asasi Manusia 11–20.
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Peter Mahmud Marzuki, Penelitian Hukum (Jakarta: Kencana Prenada Media Group, 2009).
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PA Oktavinanda, “Is the Conditionally Constitutional Doctrine Constitutional?” (2018) 8 Indonesia Law Review 17.
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RM Mihradi et al., "The Decision of the Constitutional Court Which Is Positive Legislature and Their Implications on Substantial Democracy in Indonesia” (2021) 8:12 International Journal of
Multiculticulturalism and Multireligious Understanding 191–200.
Saldi Isra, Pergeseran Fungsi Legislasi: Menguatnya Model Legislasi Parlementer Dalam Sistem Presidensial Indonesia (Jakarta: Rajawali Pers, 2010).
———, Perkembangan Pengujian Perundang-Undangan Di Mahkamah Konstitusi (Dari Berpikir Hukum Tekstual Ke Hukum Progresif (Padang: Sekretariat Jenderal dan Kepaniteraan MK RI & Pusat Studi Konstitusi Universitas Andalas, 2010).
Simon Butt, “Conditional Constitutionality and Conditional Unconstitutionality in Indonesia” in Constitutional Remedies in Asia (Routledge, 2019).
S Cassese, “Global administrative law: the state of the art” (2015) 13:2 International Journal of Constitutional Law 465–468.
Sefriani & Seguito Monteiro, “Potential Investor Claims and Possible State Defenses During the Covid-19 Emergency” (2021) 5:2 Sriwijaya Law Review 236–246.
Seyed M Ghammamy & Seyed H Hoseini, “Theoretical Foundations of the Basic Constitutional Review” (2020) 50:1 Public Law Studies Quarterly 139–158.
Soerjono Soekanto, Pengantar Penelitian Hukum (Jakarta: Universitas Indonesia (UI-Press), 2008).
SO Manullang, “Indonesian Law and Human Rights Expert’s View on the Constitutional Court’s Decision Against the Manpower Law from the Omnibus Law” (2022) 6 Linguistic and Culture Review 1–14.
Sulistina, Bayu Dwi Anggono, & Al Khanif, “The Pathway of Adopting Omnibus Law in Indonesia’s Legislation: Challenges and Opportunities in Legal Reform” (2022) 2:2 Jurnal Kajian Pembaruan Hukum 155–182.
Syukri Asy’ari, Meyrinda R Hilipito, & Mohammad Mahrus Ali, “Model dan Implementasi Putusan Mahkamah Konstitusi dalam Pengujian Undang-Undang (Studi Putusan Tahun 2003-2012)” (2013) 10:4 Jurnal Konstitusi 675–708.
Yati Nurhayati, Ifrani, & MYasir Said, “Metodologi Normatif dan Empiris Dalam Perspektif Ilmu Hukum” (2021) 2:1 Jurnal Penegakan Hukum Indonesia 1–20.
Published
2022-12-30
How to Cite
NURHAYATI, Yati et al.
Investment in Indonesia After Constitutional Court’s Decision in the Review of Job Creation Law.
Lentera Hukum, [S.l.], v. 9, n. 3, p. 435-458, dec. 2022.
ISSN 2621-3710.
Available at: <https://jurnal.unej.ac.id/index.php/ejlh/article/view/32368>. Date accessed: 24 apr. 2024.
doi: https://doi.org/10.19184/ejlh.v9i3.32368.
Section
Articles
