Indonesia court orders government to amend controversial labor law By Reuters

© Reuters. A cleaner walks outside the Constitutional Court in Jakarta, Indonesia, May 24, 2019. REUTERS/Willy Kurniawan


JAKARTA (Reuters) – Indonesia’s Constitutional Court on Thursday ordered the government to amend parts of a controversial job creation law within two years, calling it conditionally unconstitutional.

The legislation, which was passed last year, sparked widespread protests across Indonesia over allegations that it undermines workers’ rights and weakens environmental protection.

Chief Justice Anwar Osman said that if the changes were not made within two years, the legislation would be considered “permanently unconstitutional”.

The court ruling followed last year’s pursuit of judicial review by Indonesia’s two largest unions, which challenged what it described as procedural flaws in their formation.

The government had no immediate comment on Thursday’s court ruling.

After reviewing more than 70 existing laws as part of the legislative reform, the government said the law is designed to simplify red tape, stimulate investment and boost labor competitiveness.

But unions, environmentalists, academics and students have argued that the matter has been rushed without adequate consultation, and will undermine workers’ rights and weaken environmental protection.

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