Indonesian Job Creation Law: Neoliberal Legality, Authoritarianism and Executive Aggrandizement Under Joko Widodo

Abstract

Abstract On October 5, 2020, President Joko Widodo (Jokowi) passed Law no. 11/2020 on Job Creation (Job Creation Law/JCL) designed to improve Indonesia’s private investment climate. The law changed various legal landscapes that were identified as obstacles to accelerated development and economic growth. However, the Law has sparked widespread protests because it can potentially encourage environmental damage, exacerbate workers’ vulnerability and increase socioeconomic inequality. Describing JCL as a neoliberal legality project, this paper explores the elected executive’s role in mobilizing authoritarian state practices through disciplinary measures that undermine democratic accountabilities. It is argued that the configuration between the pre-existing illiberal democracy and Jokowi’s autocratic tendencies offers predatory business alliances an adequate legal and institutional platform to formulate a neoliberal legal breakthrough while eliminating resistance to them. Through a socio-legal analysis of the three areas targeted by the JCL amendments, we further argue that Jokowi’s success in advocating for his preferred neoliberal agenda hinges on what is called an executive aggrandizement strategy. This is characterized by interventions designed to safeguard the neoliberal legality preferences promoted by the elected executive from the disruption of meaningful checks and balances in the future, thereby deepening the features of authoritarian statecraft. This paper contributes to an advanced understanding of the bleak picture of Indonesian democracy over the past few years by proposing neoliberal legality as one of the ingrained legal characteristics of Jokowi’s authoritarian regime.