Relationship for the Establishment of Local Regulations in the Job Creation Law

Abstract

The job creation law was born with the aim of opening the widest possible investment climate in Indonesia. To date, investors still face obstacles in investing in the form of difficult regulations. This can be seen in the inadequate coordination between local regulations and central government regulations. Based on this, the problem arises how is the relationship for the establishment of local regulations in the job creation law? The method used in this research is normative legal research with a qualitative approach method with a focus on regulations and related data to answer problems. It can be concluded that Article 174 of the job creation law adds rules regarding the relationship between the central and local governments, namely the authority of local governments as part of the presidential authority. Article 176 a quo also changes a number of local government authorities. For example, the licensing authority in Article 350 of Law 23/2014. In PP No 6/2021, Article 3 Implementation of Business Licensing in the Regions is carried out by the Central Government, Provincial Government, and City/Regency Goverment in accordance with their respective authorities based on the provisions of laws and regulations. From the licensing rules, it is not executive preview as a form of preventive supervision, but top-down control that dominates. This has the potential to eliminate local content and conditions based on regional interests.

Keywords

• local regulation
• relationship
• the job creation law.