Evaluation of the Implementation and Impact of the Job Creation Law Post—The Constitutional Court Decision 168/PUU-XXI/2023: A Perspective from Entrepreneurs

Abstract

This study aims to explore the interaction between law and social factors, including from the perspective of entrepreneurs as employers in the form of entrepreneurs’ perceptions and responses to the interpretation of a decent life in determining compensation for employment agreements that bind contract employees and workers (PKWT and PKWTT) when the employment relationship ends, a short probationary period, the provision of process wages for employees who are laid off, and provisions regarding minimum wages that do not consider the company’s ability regulations stipulated by the Job Creation Law post-the Constitutional Court Decision No. 168/PUU-XXI/2023. Perjanjian Kerja Waktu Tertentu (PKWT) is a fixed-term employment agreement that specifies the time between the worker and the employer. At the same time, Perjanjian Kerja Waktu Tidak Tertentu (PKWTT) is an Indefinite-Term Employment Agreement, or an employment agreement without a time limit, which is usually called a permanent employee. This research utilizes a normative juridical legal research method, with data analysis performed through qualitative analysis (aligned with qualitative research philosophy) that is descriptive in nature. The legal research method for analyzing secondary data incorporates literature studies that take a socio-legal approach. The results of this study show that we need to assess how the Job Creation Law is being applied and its effects on post-Constitutional Court Decision No. 168/PUU-XXI/2023, using both a positive and ideal legal framework. This aims to realize legal certainty and legal benefits in business in Indonesia from the perspective of entrepreneurs, as guaranteed in the 1945 Constitution of the Republic of Indonesia. Thus, the results of this study are expected to improve the employment law ecosystem in Indonesia and can also be used by state administrators, academics, and other stakeholders related to the Constitutional Court Decision 168/PUU-XXI/2023, which granted the judicial review of the Job Creation Law and asked the legislators, or Dewan Perwakilan Rakyat Indonesia (DPR RI), and the government to immediately create a new employment law and separate it from the Omnibus Law, or Job Creation Law.