[Indonesia] Court orders government to amend controversial labour law

On November 25, Indonesia's Constitutional Court gave the government two years to amend parts of a new job creation law, citing procedural flaws in how the controversial legislation was handled, Bangkok Post reports.

The law was passed in 2020 and it revised more than 70 existing laws. It provoked protests across Indonesia and complaints that it undermined labour rights and environmental safeguards.

Ruling in a judicial review brought by unions, Chief Judge Anwar Usman said if changes were not made in two years, the legislation would be deemed "permanently unconstitutional".

The ruling reportedly described the way the legislation was handled as procedurally flawed and in some parts unconstitutional, including changes made after parliamentary approval.

The judges acknowledged the rationale behind some of the government's actions in pushing through a law that was intended to attract investment and create jobs, however, the ruling said proper processes should have been followed.

"It doesn't mean that reaching those goals then could set aside the ways or formal procedures that are in effect," it said.

"The government will immediately follow up the court's ruling by preparing for the law revision and carry out as best as we could the court's instructions," Chief Judge Usman told a news conference.

The law had been designed to streamline bureaucratic procedures, spark investment and boost labour competitiveness but critics argued comprehensive revisions took place and got rushed through without sufficient consultation.

Deni Ferdiansyah joined union members outside the court and said the judges had sided with the workers.

"We feared the Constitutional Court would be pro-government but thank God they still used their conscience," Deni said.

"This law makes labourers suffer, especially when it comes to the minimum wage."

Rules on severance pay, contract labour and outsourcing, and a stipulation that environmental studies only be required for high-risk investments were among the areas of concern.

Said Iqbal - chief of the KSPI labour union - said workers "highly appreciate" the court, adding "we believe there's justice to be had."

KSPI lawyer Said Salahudin said the entire process of drafting the law should be restarted.

"This isn't a normal ruling, it was very bold for the Constitutional Court to do this," he said.

"Anything related to labour policies that are strategic and have wider implications needs to be suspended." 

The government had no immediate comment on the court's decision on November 25.

Unions, environmentalists, academics and students, however, argued that the law was rushed through without sufficient consultation and would undermine worker rights and weaken environmental protections. 

Source: Bangkok Post

(Quotes via original reporting)

On November 25, Indonesia's Constitutional Court gave the government two years to amend parts of a new job creation law, citing procedural flaws in how the controversial legislation was handled, Bangkok Post reports.

The law was passed in 2020 and it revised more than 70 existing laws. It provoked protests across Indonesia and complaints that it undermined labour rights and environmental safeguards.

Ruling in a judicial review brought by unions, Chief Judge Anwar Usman said if changes were not made in two years, the legislation would be deemed "permanently unconstitutional".

The ruling reportedly described the way the legislation was handled as procedurally flawed and in some parts unconstitutional, including changes made after parliamentary approval.

The judges acknowledged the rationale behind some of the government's actions in pushing through a law that was intended to attract investment and create jobs, however, the ruling said proper processes should have been followed.

"It doesn't mean that reaching those goals then could set aside the ways or formal procedures that are in effect," it said.

"The government will immediately follow up the court's ruling by preparing for the law revision and carry out as best as we could the court's instructions," Chief Judge Usman told a news conference.

The law had been designed to streamline bureaucratic procedures, spark investment and boost labour competitiveness but critics argued comprehensive revisions took place and got rushed through without sufficient consultation.

Deni Ferdiansyah joined union members outside the court and said the judges had sided with the workers.

"We feared the Constitutional Court would be pro-government but thank God they still used their conscience," Deni said.

"This law makes labourers suffer, especially when it comes to the minimum wage."

Rules on severance pay, contract labour and outsourcing, and a stipulation that environmental studies only be required for high-risk investments were among the areas of concern.

Said Iqbal - chief of the KSPI labour union - said workers "highly appreciate" the court, adding "we believe there's justice to be had."

KSPI lawyer Said Salahudin said the entire process of drafting the law should be restarted.

"This isn't a normal ruling, it was very bold for the Constitutional Court to do this," he said.

"Anything related to labour policies that are strategic and have wider implications needs to be suspended." 

The government had no immediate comment on the court's decision on November 25.

Unions, environmentalists, academics and students, however, argued that the law was rushed through without sufficient consultation and would undermine worker rights and weaken environmental protections. 

Source: Bangkok Post

(Quotes via original reporting)