Investment Minister Bahlil Lahadalia has said the government would speed up the revision of the Omnibus Law, also known as the Job Creation Law.
The changes have been forced by a ruling from the Constitutional Court stating it is partially unconstitutional.
Bahlil said in an internal government meeting that was held after the Constitutional Court’s decision that President Joko Widodo (Jokowi) had given directions to speed up revisions to provide certainty to investors. The court demanded revisions within two years.
“Maybe at the beginning of next year we will be finished,” he said at a monthly press conference on Wednesday 1st December.
Furthermore, he said that he believes the Constitutional Court’s decision would not affect the realisation of investment in the last quarter of this year. However, he did not deny that he was aware there could be an impact on investments planned for 2022.
Even so, he did not revise the investment target for next year, leaving it at Rp1.2 trillion. To achieve this target, Bahlil said communication with potential investors would be the key to success.
He said that he had communicated with investors through the Foreign Direct Investment (FDI) representative office. From there, he claimed that foreign investors understood the government’s position and still believed in the leadership of President Joko Widodo.
“But we also see that we should not be too overly concerned about it. Because the decision is only a matter of formalities. We have been given two years, God willing, we will complete it as soon as possible,” Bahlil explained.
The court’s decision session on Wednesday 25th November ordered the government and the House of Representatives (DPR) to revise the law within the next two years. If the provisions don’t rectify the issues identified, the whole law will be deemed unconstitutional.
“We are ordering legislators to make improvements within a maximum period of two years after this decision is pronounced,” said Chief Justice of the Constitutional Court and Chair of the Panel of Judges Anwar Usman in a hearing at the Constitutional Court Building, Central Jakarta, on Thursday 25th November.