The impact of the constitutional court decision number 168/PUU-XXI/2023 concerning law number 6 of 2023 on national investment growth in Indonesia
DOI:
https://doi.org/10.36096/ijbes.v7i1.737Keywords:
Constitutional Court Decision Number 168/PUU-XXI/2023, Law Number 6 of 2023, Law Number 13 of 2003, the 1945 Constitution of the Republic of Indonesia, investment, IndonesiaAbstract
The purpose of this study is to investigate the Constitutional Court Decision Number 168/PUU-XXI/2023 concerning Law Number 6 of 2023 and its impact on national investment growth in Indonesia. This Constitutional Court Decision was stipulated on October 31, 2024, in response to the request for a material review of Law Number 6 of 2023 concerning the Stipulation of Government Regulation instead of Law Number 2 of 2022 concerning Job Creation into a Law related to changes to provisions originally regulated in Law Number 13 of 2003 concerning Manpower and the 1945 Constitution of the Republic of Indonesia. This research methodology uses a doctrinal legal research approach that focuses on the law and involves analyzing legal rules found in primary sources. This document uses data from scientific contributions published in academic research databases. The findings of this study are that labor laws are expected to reflect the national legal commitment to maintaining harmony between industry needs and worker protection so that the benefits can be felt by all parties involved in employment relations in Indonesia. Thus, this Constitutional Court decision is expected to create fairer labor standards in the form of creating an employment ecosystem in Indonesia. This scientific contribution concludes that labor laws and regulations are expected to be able to increase national investment growth in Indonesia. This study is of interest to various stakeholders, legislators, companies, academics, and others to encourage national economic growth in general, and national investment growth in particular after the Constitutional Court Decision Number 168/PUU-XXI/2023.
Downloads
References
Abdullah, S. (2014). Politik hukum penanaman modal asing setelah berlakunya Undang-Undang Penanaman Modal 2007 dan implikasinya terhadap pengusaha kecil. Fiat Justisia Jurnal Ilmu Hukum, 8(4), 546–570. https://doi.org/10.25041/fiatjustisia.v8no4.320 DOI: https://doi.org/10.25041/fiatjustisia.v8no4.320
Akbar, P. (2013). Lembaga-lembaga negara menurut UUD NRI tahun 1945. Jakarta: Sinar Grafika.
Alesina, A., Ardagna, S., Nicoletti, G., & Schiantarelli, F. (2003a). Regulation and investment. NBER Working Paper, No. 9560. Cambridge, Massachusetts: National Bureau of Economic Research. https://www.nber.org/system/files/working_papers/w9560/w9560.pdf [Accessed December 1, 2024]. DOI: https://doi.org/10.3386/w9560
Alesina, A., Ardagna, S., Nicoletti, G., & Schiantarelli, F. (2005b). Regulation and investment. Journal of the European Economic Association, 3(4), 791–825. https://doi.org/10.1162/1542476054430834 DOI: https://doi.org/10.1162/1542476054430834
Altman, E. J., Schwartz, J., Kiron, D., Jones, R., & Kearns-Manolatos, D. (2021). Workforce ecosystems: A new strategic approach to the future of work. MIT Sloan Management Review and Deloitte, 1–39. https://www.deloitte.com/content/dam/assets-zone2/de/de/docs/services/consulting/2024/Workforce-Ecosystems-Study2021.pdf [Accessed December 2, 2024].
Amadeo, K. (2024). Components of GDP: Explanation, formula and chart: Critical drivers of America's economy. https://www.thebalancemoney.com/components-of-gdp-explanation-formula-and-chart-3306015 [Accessed December 1, 2024].
Arsad, R. (2023). Realizing good governance in governance through law enforcement and democracy. Central European Management Journal, 31(2), 1249–1253. https://doi.org/10.32052/23364890.cemj.31.2.126
Arthur, M. B. (2023). What’s your employer’s workforce ecosystem, and how can you respond to it? Forbes. https://www.forbes.com/sites/michaelbarthur/2023/04/19/whats-your-employers-workforce-ecosystem-and-how-can-you-respond-to-it/ [Accessed December 3, 2024].
Asshiddiqie, J. (2007). Konstitusi dan ketatanegaraan Indonesia kontemporer. Jakarta: The Biography Institute.
Aulia, Y., Abdurahman, A., & Susanto, M. (2021). Fundamental principles of the legislation process: Comparative study between Indonesia and the United Kingdom. Petita: Jurnal Kajian Ilmu Hukum dan Syariah (PJKIHdS), 6(1), 40–60. https://doi.org/10.22373/petita.v6i1.109 DOI: https://doi.org/10.22373/petita.v6i1.109
Bachtiar. (2018). Metode penelitian hukum. Tangerang Selatan: UNPAM Press.
Badan Pusat Statistik. (2024). Foreign direct investment realization by province (million US$), 2021–2023, domestic direct investment realization by province (Invest) (billion Rupiahs), 2021–2023. Last Update: March 1, 2024. https://www.bps.go.id/en/statistics-table/2/MTg0MCMy/foreign-direct-investment-realization-by-province.html [Accessed December 6, 2024].
Baharum, A., & Islam, M. A. (2010). The analysis of transitions in economic performance using covariate dependent statistical models. The Journal of Developing Areas, 43(2), 289–298. https://doi.org/10.1353/jda.0.0070 DOI: https://doi.org/10.1353/jda.0.0070
Baldwin, R. (2024). The case for regulation has never been more acute. The trouble is that we only care about regulation when something goes wrong. London School of Economics and Political Science. https://www.lse.ac.uk/ [Accessed December 4, 2024].
Bhat, P. I. (2020). Doctrinal legal research as a means of synthesizing facts, thoughts, and legal principles. Oxford Academic, 143–168. https://doi.org/10.1093/oso/9780199493098.003.0005 DOI: https://doi.org/10.1093/oso/9780199493098.003.0005
Basniwati, A. D. (2014). Kedudukan dan wenang Mahkamah Konstitusi dalam sistem ketatanegaraan Republik Indonesia. Jurnal IUS Kajian Hukum dan Keadilan, Universitas Mataram, II(5), 252–264. P-ISSN: 23033627 E-ISSN: 2477815X. https://jurnalius.ac.id/ojs/index.php/jurnalIUS/article/viewFile/171/147
BlackRock, Inc. (2024). Investing for growth. https://www.blackrock.com/uk/solutions/investment-trusts/investing-for-growth [Accessed December 4, 2024].
Bonnitcha, J., Nikiéma, S. H., & St John, T. (2023). Rethinking national investment laws: A study of past and present laws to inform future policy-making. International Institute for Sustainable Development, 1–52. https://www.iisd.org/system/files/2023-07/rethinking-national-investment-laws-en.pdf [Accessed December 4, 2024].
Burden, L. (2024). Dictionary: Employment law terms. https://www.findlaw.com/employment/legal-help-and-resources/dictionary-employment-law-terms.html [Accessed November 30, 2024].
Chacaltana, J. (2009). Economic implications of labour and labour-related laws on MSEs: A quick review of the Latin American experience. International Labour Organization Employment Sector Employment Working Paper No. 31, 1–37. ISSN 1999-2939 (print); ISSN 1999-2947 (web pdf). https://www.ilo.org/media/340861/download [Accessed December 2, 2024].
Chayani, D., & Wibowo, A. (2023). The role of the Constitutional Court in realizing a democratic law state through state administration in Indonesia. Justices: Journal of Law, 2(3), 132–141. https://doi.org/10.58355/justices.v2i3.47 DOI: https://doi.org/10.58355/justices.v2i3.47
Clark, R., Reed, J., & Sunderland, T. (2018). Bridging funding gaps for climate and sustainable development: Pitfalls, progress and potential of private finance. Land Use Policy, 71, 335–346. https://doi.org/10.1016/j.landusepol.2017.12.013 DOI: https://doi.org/10.1016/j.landusepol.2017.12.013
Creswell, J. W., & Clark, V. L. P. (2017). Designing and conducting mixed methods research. Thousand Oaks, CA: Sage Publications, Inc.
Dawson, J. W. (2006). Regulation, investment, and growth across countries. The Cato Journal, 26(3), 489–509. https://ciaotest.cc.columbia.edu/olj/cato/v26n3/v26n3e.pdf [Accessed December 1, 2024].
Dawson, J., & Seater, J. (2005). The macroeconomic effects of federal regulation. Working Papers, Department of Economics, Appalachian State University, 1–38. https://econpapers.repec.org/scripts/showcites.pf?h=repec:apl:wpaper:05-02 [Accessed December 1, 2024].
David Diaz, D. (2022). Employment law: Protecting the UK’s workers. The University of Sunderland. https://online.sunderland.ac.uk/employment-law-protecting-the-uks-workers/ [Accessed December 7, 2024].
Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2002). The regulation of entry. The Quarterly Journal of Economics, 117(1), 1–37. https://doi.org/10.1162/003355302753399436 DOI: https://doi.org/10.1162/003355302753399436
Domas, M. H. (2023). The public interest theory of regulation: Non-existence or misinterpretation? European Journal of Law and Economics, 15(2), 165–194. https://doi.org/10.1023/A:1021814416688 DOI: https://doi.org/10.1023/A:1021814416688
Eneh, N. E., Bakare, S. S., Adeniyi, A. O., & Akpuokwe, C. U. (2024). Modern labor law: A review of current trends in employee rights and organizational duties. International Journal of Management & Entrepreneurship Research, 6(3), 540–553. https://doi.org/10.51594/ijmer.v6i3.843 DOI: https://doi.org/10.51594/ijmer.v6i3.843
Fadhil, H. (2024). Hakim Mahkamah Konstitusi, Enny Nurbaningsih dalam MK kabul sebagian gugatan Partai Buruh dkk, ubah 21 pasal di UU Ciptaker. https://news.detik.com/ [Accessed December 2, 2024].
Fanfani, B. (2023). The employment effects of collective wage bargaining. Journal of Public Economics, 227, 1–27. https://doi.org/10.1016/j.jpubeco.2023.105006 DOI: https://doi.org/10.1016/j.jpubeco.2023.105006
Government of Alberta. (2024). Outcomes and key initiatives. https://www.alberta.ca/investment-and-growth-strategy [Accessed December 1, 2024].
Hamid, A., & Intan, A. (2023). Labor law does not exist in a vacuum in the era of Industrial Revolution 4.0. Beijing Law Review, 14, 1–27. https://doi.org/10.4236/blr.2023.141001 DOI: https://doi.org/10.4236/blr.2023.141001
Hariadi, D., Hesti Wulan, & Sonya Claudia Siwu. (2023). Analisis yuridis terhadap Undang-Undang Nomor 6 Tahun 2023 tentang penetapan peraturan pemerintah pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja. Jurnal Hukum to-Ra: Hukum Untuk Mengatur dan Melindungi Masyarakat, 9(3), 428–447. https://doi.org/10.55809/tora.v9i3.276 DOI: https://doi.org/10.55809/tora.v9i3.276
Heriyanto, M. (2023). BPS catat 94,68 persen angkatan kerja Indonesia terserap pasar kerja. https://www.antaranews.com/ [Accessed December 2, 2024].
Hutahayan, B., Fadli, M., Amimakmur, S. A., & Dewantara, R. (2024). Investment decision, legal certainty and its determinant factors: Evidence from the Indonesia Stock Exchange. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2332950 DOI: https://doi.org/10.1080/23311975.2024.2332950
Iannarelli, J. G., & O’Shaughnessy, M. (2015). Information governance and security. In Butterworth-Heinemann, ScienceDirect: Elsevier's (pp. 185–186). https://doi.org/10.1016/B978-0-12-800247-6.16001-7 DOI: https://doi.org/10.1016/B978-0-12-800247-6.00001-7
Indonesia Law Digest. (2024). Putusan MK No. 168/PUU-XXI/2023: Mengurai Dalil dan Pertimbangan di Balik Amar Putusan. dalam Hukumonline.com, Rabu, November 13, 2024 | Issue Number: 898. https://pro.hukumonline.com/ [Accessed December 8, 2024].
International Bank for Reconstruction and Development/The World Bank. (2015). Investment Climate Reforms: An Independent Evaluation of World Bank Group Support to Reforms of Business Regulations. https://documents1.worldbank.org/ [Accessed December 5, 2024].
International Labour Organization. (2024). Indonesia strengthens the implementation of its National Strategy on Business and Human Rights. https://www.ilo.org/ [Accessed December 7, 2024].
Kersten Stamm, K., & Vorisek, D. (2023). The Global Investment Slowdown: Challenges and Policies. Policy Research Working Paper 10364, the World Bank - Development Economics Prospects Group, 1-17. https://documents1.worldbank.org/ [Accessed December 2, 2024]. DOI: https://doi.org/10.1596/1813-9450-10364
Kuddo, A. (2018). Labor Regulations throughout the World: An Overview. 1-63. https://documents1.worldbank.org/ [Accessed December 3, 2024]. DOI: https://doi.org/10.1596/30106
Lai, C., & Sarkar, S. (2019). Labor Legislation, Educated Labor & Foreign Direct Investment in Manufacturing in Taiwan. Indian Journal of Industrial Relations, 55(1), 39-53. https://doi.org/27124698
Law Insider. (2024). Law Regulation Definition. https://www.lawinsider.com/dictionary/legal-regulation [Accessed December 5, 2024].
Legal Information Institute. (2024). Employment. https://www.law.cornell.edu/wex/employment [Accessed November 30, 2024].
Lubis Santosa & Partners Law Firm. (2024). Investing Legal Certainty for Better Investment Climate. https://www.lsmlaw.co.id/ [Accessed December 5, 2024].
McCusker, K., & Gunaydin, S. (2015). Research Using Qualitative, Quantitative or Mixed Methods and Choice Based on the Research, Perfusion, 30, 537-542. https://doi.org/10.1177/0267659114559116 DOI: https://doi.org/10.1177/0267659114559116
Macwilliam, C. (2023). What Aspects of Employment Are Covered by Law? https://www.clough-willis.co.uk/news-events/what-aspects-of-employment-are-covered-by-law [Accessed December 8, 2024].
Mahrofi, Z. (2023). Job creation law aims to improve quality of workforce: Ministry. https://en.antaranews.com/ [Accessed December 2, 2024].
Majeed, N., Hilal, A., & Khan, A.N. (2023). Doctrinal Research in Law: Meaning, Scope and Methodology. Bulletin of Business and Economics, 12(4), 559-563. https://doi.org/10.61506/01.00167 DOI: https://doi.org/10.61506/01.00167
Marzuk, P. M. (2005). Research Methods (1st ed.). Jakarta: Kencana Prenada Media Group.
Maslow Media Group, Inc. (2023). What are the Five Major Kinds of Employment & Labor Laws? https://maslowmedia.com/what-are-the-five-major-kinds-of-employment-laws/ [Accessed November 30, 2024].
Negara, T. A. S. (2023). Normative Legal Research in Indonesia: Its Origins and Approaches. Audito Comparative Law Journal (ACLJ), 4(1), 1–9. https://doi.org/10.22219/aclj.v4i1.24855 DOI: https://doi.org/10.22219/aclj.v4i1.24855
Neel, A. (2023). Legal Research: Doctrinal and Non-Doctrinal. Online Materials: Legal Bites Law and Beyond. https://www.legalbites.in/research-methodology/questionnaire-v-schedule-methods-key-differences-in-research-methodology-1068846 [Accessed December 3, 2024].
North, C.D. (1990). Institutions, Institutional Change and Economic Performance. New York: Cambridge University Press. DOI: https://doi.org/10.1017/CBO9780511808678
OECD. (2023). Improving the Legal Environment for Business and Investment in Central Asia: Progress Report. OECD Publishing, Paris, 3-123. https://doi.org/10.1787/33a28683-en. DOI: https://doi.org/10.1787/33a28683-en
Otang, A. (2020). Tinjauan Kritis Atas Problematika UU Cipta Kerja & Implikasinya Terhadap Perlindungan Pekerja. https://openparliament.id/wp-content/uploads/2021/08/TURC-Analysis_UU-Cipta-Kerja.pdf [Accessed December 1, 2024].
Orbach, B. (2016). What is Regulation? Yale Journal on Regulation. https://www.yalejreg.com/bulletin/what-is-regulation/ [Accessed December 5, 2024].
Palguna, I.D.G. (2013). Pengaduan Konstitusional (Upaya Hukum terhadap Pelanggaran Hak-Hak Konstitusional Warga Negara). Jakarta: Sinar Grafika.
Paralegal. (2024). Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023. https://paralegal.id/ [Accessed December 8, 2024].
Pradeep, M.D. (2019). Legal Research- Descriptive Analysis on Doctrinal Methodology. International Journal of Management, Technology and Social Sciences (IJMTS), 4(2), 95-103. Available at SSRN: https://ssrn.com/abstract=3510976 DOI: https://doi.org/10.47992/IJMTS.2581.6012.0075
Prihandono, I., & Widiati, E. P. (2023). Regulatory capture in energy sector: evidence from Indonesia. Theory and Practice of Legislation, 11(3), 207-231. https://doi.org/10.1080/20508840.2023.2248837 DOI: https://doi.org/10.1080/20508840.2023.2248837
Prang, A. J. (2011). Implikasi Hukum Putusan Mahkamah Konstitusi, Kanun: Jurnal Ilmu Hukum - Fakultas Hukum, Universitas Syiah Kuala, 13(1), 77-94. P-ISSN: 0854-5499 E-ISSN: 2527-8428. https://doi.org/10.24815
PwC Indonesia Economic. (2024). PwC Indonesia Economic Update First Quarter 2024. Jakarta: PwC Indonesia. https://www.pwc.com/id/en/publications/general/indonesia-economic-update-2024-q1.pdf [Accessed December 6, 2024].
Rannu, D. A., & Rasji, R. (2023). Analisis Hukum Ketenagakerjaan Dalam UU Cipta Kerja. Innovative: Journal of Social Science Research, 3(5), 564–570. E-ISSN: 2807-4238 P-ISSN: 2807-4329. https://j-innovative.org/index.php/Innovative/article/view/4908
Regulatory Horizons Council. (2022). Closing the Gap: Getting from Principles to Practices for Innovation Friendly Regulation. https://assets.publishing.service.gov.uk/ [Accessed December 1, 2024].
Reserve Bank of Australia. (N/D). Economic Growth, 1-7. https://www.rba.gov.au/ [Accessed December 1, 2024].
Riyah, J. (2024). Position and Authority of the Constitutional Court as a State Institution. Justices: Journal of Law, 3(2), 76–85. https://doi.org/10.58355/justices.v3i2.52 DOI: https://doi.org/10.58355/justices.v3i2.52
Rodriguez, J. K., Johnstone, S., & Procter, S. (2017). Regulation of work and employment: advances, tensions and future directions in research in international and comparative HRM. The International Journal of Human Resource Management, 28(21), 2957–2982. https://doi.org/10.1080/09585192.2017.1416555 DOI: https://doi.org/10.1080/09585192.2017.1416555
Roelans, G. (2023). Investments in Least Developed Countries are Key to Sustainable Development. International Labour Organization (ILO). https://www.ilo.org/resource/article/investments-least-developed-countries-are-key-sustainable-development [Accessed December 4, 2024].
Roeslani, R.P. (2024). Investment Realization Continues to Grow, Minister Says. In Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation on 16 Oktober 2024. https://setkab.go.id/en/investment-realization-continues-to-grow-minister-says/ [Accessed December 4, 2024].
Safkaur, O., Afiah, N. N., Poulus, S., & Dahlan, M. (2019). The Effect of Quality Financial Reporting on Good Governance. International Journal of Economics and Financial, 9(3), 277–286. https://doi.org/10.32479/ijefi.8047 DOI: https://doi.org/10.32479/ijefi.8047
Saifullah, A. (2020). Labor Movement Responses to the Indonesian Omnibus Law. [Thesis] A Research Paper presented at Institute of Social Studies The Hague, The Netherlands, 1-44. https://thesis.eur.nl/pub/55878/Saifullah-Aip_MA_2019_20_AFES.pdf [Accessed December 2, 2024].
Satya, V.E. (2019). Upaya Penciptaan Iklim Investasi Yang Kondusif. Info Singkat: Kajian Singkat Terhadap Isu Aktual dan Strategis, XI(06), 19-24. https://www.researchgate.net/publication/370426523_Upaya_Penciptaan_Iklim_Investasi_Yang_Kondusif [Accessed December 6, 2024].
Setiawan, I., & Amin, R.F. (2023). Employment & Labour Law 2023. In International Comparative Legal Guides, 13th Edition, London, United Kingdom: Global Legal Group Limited. ISBN 978-1-83918-248-8 ISSN 2045-9653 https://www.abnrlaw.com/ [Accessed December 2, 2024].
Silalahi, W. (2020). Penataan Regulasi Berkualitas dalam Rangka Terjaminnya Supremasi Hukum. Jurnal Hukum Progresif, 8(1), 56-66. https://doi.org/10.14710/hp.8.1.56-66 DOI: https://doi.org/10.14710/hp.8.1.56-66
SIP Law Firm. (2024). Perubahan Paradigma Ketenagakerjaan: Implikasi Putusan MK Nomor 168/PUU-XXI/2023, Nov 5, 2024 | News. https://siplawfirm.id/putusan-mk/?lang=id [Accessed December 9, 2024].
Soedarsono. (2008). Tim Penyusun Buku Hakim Kostitusi, Putusan Mahkamah Konstitusi Tanpa Mufakat Bulat (Catatan Hakim Konstitusi Soedarsono), Jakarta: Sekretariat Jendral dan Kepaniteraan Mahkamah Konstitusi.
Stigler, G.J. (1971). The Theory of Economic Regulation. The Bell Journal of Economics and Management Science, 2, 3-21. http://dx.doi.org/10.2307/3003160 DOI: https://doi.org/10.2307/3003160
Stern, N. H. (2002). A Strategy for Development (English). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/305651468142168891/A-strategy-for-development [Accessed December 5, 2024].
Thea DA, A. (2024). 21 Poin Penting Amar Putusan MK Klaster Ketenagakerjaan UU Cipta Kerja. https://www.hukumonline.com/ [Accessed December 10, 2024].
The Law Dictionary. (2024). Labor Laws. https://thelawdictionary.org/ [Accessed November 30, 2024].
The UNCTAD World Investment Report. (2022). The G20 Compendium on Promoting Investment for Sustainable Development (Bali Compendium), September 2022. https://bkpm.go.id/storage/file/pdf/1673345248.pdf [Accessed December 5, 2024].
Thohir, M., & Sukriono, D. (2023). Implementation Authority Of The Constitutional Court In The Indonesian Constitutional Law System. International Journal of Business, Law, and Education, 4(2), 1495-1503. https://doi.org/10.56442/ijble.v4i2.350 DOI: https://doi.org/10.56442/ijble.v4i2.350
Thornthwaite, L., & O’Neill, S. (2021). Regulating HRM: The Limits of Regulatory Pluralism. The International Journal of Human Resource Management, 34(8), 1471–1499. https://doi.org/10.1080/09585192.2021.1996432 DOI: https://doi.org/10.1080/09585192.2021.1996432
United Unions. (2023). Our Common Agenda Policy Brief 6 Reforms to the International Financial Architecture May 2023. https://sdgs.un.org/ [Accessed December 19, 2024].
University of Illinois. (2024). Investment for Growth Program. https://provost.illinois.edu/about/initiatives/investment-for-growth-program/ [Accessed November 30, 2024].
World Development Report. (2005). A Better Investment Climate for Everyone. Oxford: World Bank and Oxford University Press.
Yitawati, K., Chairani, M. A., & Pradhana, A. P. (2024). Problematika Undang-Undang Nomor 6 Tahun 2023 Tentang Cipta Kerja Klaster Ketenagakerjaan Dalam Memberikan Perlindungan Dan Kesejahteraan Pekerja. Jurnal Rechtens, 13(1), 97–118. https://doi.org/10.56013/rechtens.v13i1.2671 DOI: https://doi.org/10.56013/rechtens.v13i1.2671
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Adnan Hamid, Nina Silvana

This work is licensed under a Creative Commons Attribution 4.0 International License.
© 2025 retained by the authors. Licensee BSC International Academy, Istanbul, Turkey. This article is an open-access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/).