| Full title | Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang |
|---|---|
| Citation | UU 6/2023 |
| Jurisdiction | Indonesia |
| Enacted by | President of Indonesia, with the joint approval of the House of Representatives |
| Signed | 31 March 2023 |
| Promulgated | 31 March 2023 |
| Effective | 31 March 2023 |
| Replaces | Undang-Undang 11/2020 on job creation (revoked by Pasal 185 of the annex) |
Undang-Undang 6/2023 (Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Peraturan Pemerintah Pengganti Undang-Undang Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang) is the Indonesian statute that enacted as a law the government regulation in lieu of law (Peraturan Pemerintah Pengganti Undang-Undang, Perppu) on job creation issued by the President on 30 December 2022. It was approved jointly by the House of Representatives and the President, signed and promulgated on 31 March 2023 in Lembaran Negara 2023 No. 41, and took effect on that date.[1][2] The statute itself has two articles; the Perppu, which it attaches as an inseparable annex, is an omnibus instrument of 186 articles in fifteen chapters that amends a large number of sectoral laws.[1:1][3]
The Perppu was issued, according to the preambles of both instruments, to carry out Constitutional Court Decision 91/PUU-XVIII/2020, which had found the formation of the 2020 job creation law, Undang-Undang 11/2020, conditionally unconstitutional and ordered it corrected within two years; the annex revokes that law.[4][5][6] The annex introduces risk-based business licensing, and among its amendments to sectoral laws are the replacement of the environmental permit by environmental approval (persetujuan lingkungan) in Undang-Undang 32/2009, the field surveyed at environmental approval in Indonesia, and a revision of the rules on fixed-term contracts, outsourcing, rest periods and wages in the manpower law.[7][8][9]
Its labour provisions were reviewed by the Constitutional Court, which in 2024 declared twenty-one of them, or phrases in them, unconstitutional, all but one conditionally, and the Court has since heard further petitions against the annex.[10][11] Implementing regulations issued under the annex include Peraturan Pemerintah 28/2025 on risk-based business licensing. CRPG's regulatory tracker published two analyses of the statute in November 2025.[12][13][14]
The preamble of the statute, repeated in substance by that of the Perppu, states that the state must secure its citizens' right to work and a decent livelihood through job creation; that the rules on cooperatives and micro, small and medium enterprises, the investment ecosystem, national strategic projects and worker protection were scattered across sectoral laws that did not meet the legal needs of accelerated job creation, and had to be brought together in one law by the omnibus method; and that Constitutional Court Decision 91/PUU-XVIII/2020 required the 2020 job creation law to be corrected by being replaced. It adds that global dynamics - rising energy and food prices, climate change and disrupted supply chains - had slowed world growth and raised inflation, and records that the President, to overcome a compelling emergency (kegentingan yang memaksa), had issued Perppu 2/2022 under Pasal 22 ayat (1) of the Constitution on 30 December 2022. Its legal bases are Pasal 5 ayat (1), Pasal 20 and Pasal 22 ayat (2) of the Constitution.[4:1]
The general elucidation of the statute summarises the ruling in Decision 91/PUU-XVIII/2020 as holding that the formation of Undang-Undang 11/2020 conflicted with the Constitution and had no binding force, conditionally, unless it was corrected within two years of the pronouncement, and that the law remained in force until corrected. It lists the follow-up: the enactment of Undang-Undang 13/2022, the second amendment of the law-making statute Undang-Undang 12/2011, which provided for the omnibus method and clarified meaningful public participation, understood as the rights to be heard, to be considered and to be given an explanation; the work of a government task force on socialising the 2020 law; and the correction of technical drafting errors. It then states that the conditions met the parameters of a compelling emergency set by Constitutional Court Decision 138/PUU-VII/2009: an urgent need to resolve legal problems quickly by law, a legal vacuum or inadequate existing law, and a vacuum that could not be filled by ordinary law-making in the time available.[5:1] The Perppu was promulgated on 30 December 2022 in Lembaran Negara 2022 No. 238.[15]
The annex, the Perppu on job creation, is organised in fifteen chapters: general provisions; principles, objectives and scope; improvement of the investment ecosystem and business activity; manpower; ease, protection and empowerment of cooperatives and micro, small and medium enterprises; ease of doing business; support for research and innovation; land procurement; economic zones; central government investment and national strategic projects; administration of government in support of job creation; supervision and guidance; other provisions; transitional provisions; and closing provisions.[3:1]
Pasal 2 lists its principles as equality of rights, legal certainty, ease of doing business, togetherness and self-reliance, together with the principles of the field of law governed by each amended law. Pasal 3 sets its objectives: creating and increasing employment by facilitating, protecting and empowering cooperatives, micro, small and medium enterprises and national industry and trade; ensuring that every citizen obtains work and fair and decent treatment in employment; and adjusting the rules on the investment ecosystem and the acceleration of national strategic projects. Pasal 4 sets the scope in ten matters, and Pasal 5 extends it to the fields of law governed by the laws concerned.[16] Most chapters consist of articles that each amend a named sectoral law; a chapeau article opening each group lists the laws amended in that group.[17]
Chapter III opens with Pasal 6, under which the improvement of the investment ecosystem comprises risk-based business licensing, simpler basic requirements for licensing, simpler sectoral licensing and simpler investment requirements. Under Pasal 7 the risk level and business-scale rating of an activity are set by assessing the level of hazard, in the aspects of health, safety, the environment and the use and management of resources, against the likelihood of the hazard occurring, and activities are classified as low, medium or high risk.[7:1] Risk-based licensing is administered under implementing regulations: Peraturan Pemerintah 5/2021, made under the 2020 law, was replaced in June 2025 by Peraturan Pemerintah 28/2025, whose preamble records that the entry into force of Undang-Undang 6/2023 required the change.[12:1]
Pasal 21 and 22 of the annex amend Undang-Undang 32/2009 on environmental protection and management "in order to make it easier for everyone to obtain environmental approval".[8:1] The amended Pasal 1 defines environmental approval (Persetujuan Lingkungan) as an environmental feasibility decision or a statement of commitment to environmental management that has been approved by the central or a regional government.[8:2]
Under the amended Pasal 24 an Amdal document is the basis of an environmental feasibility test, carried out by a feasibility-testing team formed by a central government feasibility-testing body and made up of central government, regional government and certified experts; the central or regional government issues the environmental feasibility decision on the basis of the test, and that decision is a requirement for the issue of a business licence or a government approval. The amended Pasal 26 requires the Amdal to be prepared with the involvement of the community directly affected by the planned activity. Activities without significant impact must meet UKL-UPL standards, expressed in a statement of commitment on which the licence is issued; activities not subject to UKL-UPL, which are those classed as low risk, make a statement of commitment to environmental management and monitoring (SPPL) that is integrated into their business identification number.[8:3]
Among other deletions, the annex deletes Pasal 29 to 31, 36, 38 and 40 of the 2009 law, and replaces Pasal 37 with grounds on which a business licence may be cancelled, among them a licence issued without meeting the conditions of the feasibility decision or statement of commitment, and a failure to carry out the obligations in the Amdal or UKL-UPL. The amended Pasal 39 requires environmental feasibility decisions to be announced to the public through an electronic system or other means set by the central government.[8:4] Environmental approval under the amended law is regulated in detail by Peraturan Pemerintah 22/2021, issued in 2021 to implement the 2020 job creation law's amendments to the environmental statute.[18]
Pasal 23 and 24 amend Undang-Undang 28/2002 on buildings and Undang-Undang 6/2017 on architects "to make it easier for the public, especially business actors" to obtain a building approval and a certificate of fitness for use. The amended building law defines the building approval (Persetujuan Bangunan Gedung) as the permit given to a building owner to build, alter, extend, reduce or maintain a building in accordance with the building's technical standards.[19]
Pasal 49 lists the public works and housing laws amended in the same cause, among them Undang-Undang 17/2019 on water resources, which Pasal 53 amends. The amended Pasal 8 of the water law treats the people's right to water guaranteed by the state as the minimum daily basic need, and, beyond it, gives priority to daily basic needs, smallholder agriculture, and the use of water resources for business to meet daily basic needs through a drinking-water supply system, with daily basic needs prevailing where water is insufficient.[20]
Chapter IV amends Undang-Undang 13/2003 on manpower, the national social security and social security agency laws, and the law on the protection of Indonesian migrant workers.[21] Pasal 81 rewrites a large part of the manpower law. Fixed-term employment contracts (perjanjian kerja waktu tertentu) may be based on a period of time or on the completion of a particular job, with the period or the completion determined by the contract; they may be used only for work that by its nature will be finished within a certain time, not for permanent work, and a contract that does not meet those conditions becomes by law a contract for an indefinite period. The types of work, duration and limit on extension are left to government regulation, and an employer must pay compensation when a fixed-term contract ends.[9:1]
On outsourcing, the amended Pasal 64 allows a company to hand part of its work to another company under a written outsourcing agreement, with the government determining which part of the work may be outsourced, and Pasal 66 makes the outsourcing company responsible for the protection, wages and working conditions of the workers it employs.[9:2] The amended Pasal 79 requires a weekly rest of one day for six working days a week and annual leave of at least twelve working days after twelve months of continuous work, and allows certain companies to grant long leave by contract or company regulation.[9:3] The provisions on wages oblige the governor to set a provincial minimum wage and allow a regency or city minimum wage where its calculation is higher, calculated by a formula taking into account economic growth, inflation and a "certain index", and prohibit employers from paying less than the minimum wage.[9:4]
Under Pasal 182 of the annex, business licences and certificates issued under the 2020 law, and permits issued before it, remain valid until they expire; applications in progress are processed under the new instrument; and legal acts done under the 2020 law remain valid insofar as they accord with the general principles of good governance. Pasal 183 continues the Indonesia Investment Authority (Lembaga Pengelola Investasi) formed under the 2020 law.[22] Pasal 184 keeps in force the implementing regulations of the amended laws, and those of the 2020 law, insofar as they do not conflict with the new instrument; Pasal 185 revokes Undang-Undang 11/2020; and Pasal 186 brings the instrument into force on promulgation.[22:1][6:1] Pasal 2 of the statute brings Undang-Undang 6/2023 itself into force on the date of its promulgation.[1:2]
The statute has been the subject of several petitions to the Constitutional Court, part of the record of constitutional review in Indonesia. In a formal review decided in 2023, Decision 54/PUU-XXI/2023, the Court rejected the petition in its entirety.[23] In a material review of the labour provisions, Decision 168/PUU-XXI/2023, decided in 2024, it granted the petition in part. It declared twenty-one provisions or phrases in Pasal 81 of the annex conditionally unconstitutional unless read in the sense it specified: among them, that the period of a fixed-term contract may not exceed five years including extensions; that weekly rest also includes two days for five working days a week; that the minister, rather than the government, determines the part of the work that may be outsourced, according to the type and field of work agreed in the written outsourcing agreement; that the governor must also set sectoral minimum wages; and that a termination not agreed in bipartite negotiation may take place only after a final decision of the industrial relations dispute institution.[10:1]
In July 2026 the Court rejected in Decision 192/PUU-XXIV/2026 a petition against the word "obliged" in the severance provision of the amended manpower law.[11:1]
CRPG's regulatory tracker published two analyses of the statute on 26 November 2025, one on its ratification and labour provisions and one on its environmental and permit provisions.[13:1][14:1]
K176 · Work URI /akn/id/act/uu/2023/6 · RegVault UU_6_2023[P] UU 6/2023, Pasal 1 (Perppu 2/2022, LN 2022 No. 238, TLN 6841, established as a law and attached as an inseparable part), Pasal 2 (in force on promulgation) and closing formula (Disahkan di Jakarta pada tanggal 31 Maret 2023; Diundangkan di Jakarta pada tanggal 31 Maret 2023; LN 2023 No. 41; TLN 6856). regulation_id UU_6_2023. ↩︎ ↩︎ ↩︎
[P] UU No. 6 Tahun 2023, JDIH BPK: enacted, promulgated and in force 31 March 2023; LN 2023 No. 41, TLN 6856. https://peraturan.bpk.go.id/Details/246523/uu-no-6-tahun-2023 ↩︎
[P] UU 6/2023, Lampiran (Perppu 2/2022), Bab I to Bab XV and Pasal 1 to Pasal 186. regulation_id UU_6_2023. ↩︎ ↩︎
[P] UU 6/2023, preamble, Menimbang huruf a to i (huruf f: implementing Constitutional Court Decision 91/PUU-XVIII/2020 by replacing UU 11/2020; huruf h: Perppu 2/2022 issued on 30 December 2022 under Pasal 22 ayat (1) of the Constitution) and Mengingat. regulation_id UU_6_2023. ↩︎ ↩︎
[P] UU 6/2023, Penjelasan, I. Umum (summary of the ruling in Decision 91/PUU-XVIII/2020; UU 13/2022; the parameters of Decision 138/PUU-VII/2009). regulation_id UU_6_2023. ↩︎ ↩︎
[P] UU 6/2023, Lampiran, Pasal 185 (UU 11/2020, LN 2020 No. 245, TLN 6573, revoked). regulation_id UU_6_2023. ↩︎ ↩︎
[P] UU 6/2023, Lampiran, Pasal 6 and Pasal 7 ayat (1) to (7). regulation_id UU_6_2023. ↩︎ ↩︎
[P] UU 6/2023, Lampiran, Pasal 21 and Pasal 22 (amending UU 32/2009: Pasal 1 angka 35, Pasal 24 to 28, Pasal 34, 35, 37 and 39 as amended; Pasal 29, 30, 31, 36, 38 and 40 deleted). regulation_id UU_6_2023. ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
[P] UU 6/2023, Lampiran, Pasal 81 (amending UU 13/2003), including Pasal 56, 59, 61A, 64, 66, 79, 88C, 88D and 88E of the manpower law as amended. regulation_id UU_6_2023. ↩︎ ↩︎ ↩︎ ↩︎ ↩︎
[P] Constitutional Court Decision 168/PUU-XXI/2023, material review of UU 6/2023, amar putusan points 1, 4, 6, 7, 12 and 20 (conditional interpretations of Pasal 56 ayat (3), Pasal 64 ayat (2), Pasal 79 ayat (2) huruf b, Pasal 88C and Pasal 151 ayat (4) as amended by Pasal 81 of the annex), among 25 points; points 2 to 22 declare provisions or phrases unconstitutional, point 8 without condition. Held in the CRPG Constitutional Court database (mkri.db). https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_11215_1730375514.pdf ↩︎ ↩︎
[P] Constitutional Court Decision 192/PUU-XXIV/2026, amar putusan (petition on the word wajib in Pasal 156 ayat (1) in Pasal 81 angka 47 of the annex rejected). Held in the CRPG Constitutional Court database (mkri.db). https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_14633_1784188576.pdf ↩︎ ↩︎
[P] Peraturan Pemerintah Nomor 28 Tahun 2025 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko, preamble (Menimbang and Mengingat, citing UU 6/2023, LN 2023 No. 41). regulation_id PP_28_2025. https://peraturan.bpk.go.id/Details/319773/pp-no-28-tahun-2025 ↩︎ ↩︎
[E] "Ratifying the Job Creation Perppu into Permanent Law: UU 6/2023", CRPG regulatory tracker, crpg.id, 26 November 2025. https://crpg.id/how-does-uu-6-2023-amend-job-creation-law-provisions/ (free sign-in required on crpg.id) The post carries a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎ ↩︎
[E] "Job Creation Law's Environmental and Permit Reforms: UU 6/2023", CRPG regulatory tracker, crpg.id, 26 November 2025. https://crpg.id/how-does-uu-6-2023-amend-environmental-and-permit-provisions/ (free sign-in required on crpg.id) The post carries a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎ ↩︎
[P] UU 6/2023, Lampiran (Perppu 2/2022), closing formula (Ditetapkan di Jakarta pada tanggal 30 Desember 2022; Diundangkan di Jakarta pada tanggal 30 Desember 2022; LN 2022 No. 238). regulation_id UU_6_2023. ↩︎
[P] UU 6/2023, Lampiran, Pasal 2 to Pasal 5. regulation_id UU_6_2023. ↩︎
[P] UU 6/2023, Lampiran, for example Pasal 21, Pasal 23, Pasal 49 and Pasal 80 (chapeau articles listing the laws amended). regulation_id UU_6_2023. ↩︎
[P] Peraturan Pemerintah Nomor 22 Tahun 2021 tentang Penyelenggaraan Perlindungan dan Pengelolaan Lingkungan Hidup, general elucidation (the 2020 job creation law amended provisions of UU 32/2009, which the regulation follows up). regulation_id PP_22_2021. ↩︎
[P] UU 6/2023, Lampiran, Pasal 23 and Pasal 24 angka 1 (Pasal 1 angka 19 of UU 28/2002 as amended). regulation_id UU_6_2023. ↩︎
[P] UU 6/2023, Lampiran, Pasal 49 huruf d and Pasal 53 angka 1 (Pasal 8 ayat (1) to (3) of UU 17/2019 as amended). regulation_id UU_6_2023. ↩︎
[P] UU 6/2023, Lampiran, Pasal 80 huruf a to d. regulation_id UU_6_2023. ↩︎
[P] UU 6/2023, Lampiran, Pasal 182 huruf a to e, Pasal 183, Pasal 184 and Pasal 186. regulation_id UU_6_2023. ↩︎ ↩︎
[P] Constitutional Court Decision 54/PUU-XXI/2023, formal review of UU 6/2023, amar putusan ("Menolak permohonan para Pemohon untuk seluruhnya"). Held in the CRPG Constitutional Court database (mkri.db). https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_9292_1696228099.pdf ↩︎