Client Alert – Constitutional Court Declares the Omnibus Law to be Conditionally Unconstitutional: What’s Next?

On 25 November 2021, the Constitutional Court rendered Decision No. 91/PUU-XVIII/2020 (Decision 91), the long-awaited decision that judicially reviewed the validity of Law No. 11 of 2020 on Job Creation, or infamously referred to as the Omnibus Law. While the decision does not necessarily revoke the Omnibus Law yet, it requires the Government to “fix” certain aspects regarding the issuance of the Omnibus Law within a 2-year period since the decision was read, or else, the Omnibus Law will be permanently deemed unconstitutional, losing all of its binding power.

The most controversial part is of course the Constitutional Court’s order that the Government must: (i) refrain from performing any acts/policies that are strategic and have broad impacts relating to the Omnibus Law, and (ii) halt the issuance of new implementing regulations under the Omnibus Law. Such decision leaves us with two big questions. First, does the Constitutional Court have the authority to interfere the Government’s authority in issuing laws and regulations? Second, what measures should be taken by the Government as a response to this highly questionable decision?

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Client Alert – CC Decision

Client Alert – CC Decision (Bahasa)

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