The Centralization of Authority in the Era of Regional Autonomy as an Implication of Law No. 6 of 2023 on Job Creation

Abstract

Law Number 6 of 2023 concerning Job Creation introduces significant changes to the distribution of authority between the central and regional governments within the Indonesian constitutional system. The strengthening of central government authority through risk-based business licensing regulations, the establishment of Norms, Standards, Procedures, and Criteria (NSPK), and supervision of regional governments indicates a tendency toward the centralization of authority in the implementation of regional autonomy. This study aims to analyze the regulation of authority between central and regional governments under the Job Creation Law and examine its legal implications for the implementation of regional autonomy. The method used in this study is normative legal research employing statutory and conceptual approaches. The legal materials consist of primary, secondary, and tertiary legal sources, which are analyzed qualitatively. The results indicate that the Job Creation Law strengthens the position of the central government in various strategic sectors that were previously under regional authority. This condition has legal implications in the form of reduced regional government discretion in administering governance, particularly in the areas of licensing, investment, and spatial planning. On the other hand, the centralization of authority also generates positive impacts, including increased legal certainty, regulatory harmonization, and improved investment facilitation. Therefore, a balance between national interests and the implementation of regional autonomy is required to ensure that national development objectives and the principle of decentralization can be achieved harmoniously.