"Legal certainty in investment is important. Therefore, the issuance of Perppu Number 2 of 2022 is expected to fulfill the need of legal certainty. This will become the implementation of the Constitutional Court's decision," he stated at the Presidential Office in Jakarta on Friday.
According to Hartarto, the Perppu is also the answer for business owners waiting for the continuation of the Job Creation Law after it was declared conditionally unconstitutional through Constitutional Court Decision Number 91/PUU-XVII/2020 MK.
He affirmed that the Perppu will become an instrument of legal certainty and support the government's target of attracting investment of Rp1,400 trillion in 2023 as well as keeping the 2023 State Budget deficit below three percent of the gross domestic product (GDP).
"Next year, we need investment amounting to Rp1,400 trillion. That is not an ordinary figure because previously, the state budget target for investment was only around Rp900 trillion. This is not an easy challenge,” the minister remarked.
Hartarto also explained that the government's consideration to issue the Perppu was based on the urgency to anticipate the impact of increasing global economic uncertainty in 2023.
“The consideration is an urgent need. The government needs to accelerate the anticipation of good global conditions related to the economy. We are facing a global recession, rising inflation, and the threat of stagflation as well," he added.
He remarked that several regulations refined in Perppu Number 2 of 2022 were related to employment, specifically regarding minimum wages, outsourced workers, synchronization of the Law on Harmonization of Tax Regulations, and financial relations between the central government and regional governments (HKPD).
"(Other changes) improvement are related to water resources and correction of typo errors or references to legal drafting articles, as well as other non-substantial errors, which are refined in accordance with discussions with relevant ministries and institutions and have also been communicated to academics," he stated.
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Translator: Indra Arief P, Resinta S
Editor: Rahmad Nasution
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