Mitigating the Impact of Constitutional Court Decision Number 168/PUU-XXI/2023 on the Sustainability of Labor-Intensive Industries in Sukabumi Regency

Abstract

The Constitutional Court Decision Number 168/PUU-XXI/2023 has significant implications for Indonesia’s labor regulations, particularly regarding fixed-term employment agreements (PKWT), outsourcing, wage policies, and termination procedures. These changes pose challenges for labor-intensive industries that rely heavily on workforce availability and are highly sensitive to labor policy adjustments. Sukabumi Regency, one of West Java’s major labor-intensive industrial centers, faces potential legal uncertainty, increased labor costs, mass layoffs, and declining investment competitiveness. This study aims to analyze the impact of the Constitutional Court decision on the sustainability of labor-intensive industries in Sukabumi Regency and formulate mitigation strategies that balance workers’ rights and industrial sustainability. The study employs a normative-empirical legal approach using statutory, conceptual, case, and socio-legal approaches. Data are analyzed qualitatively through legal interpretation and examination of empirical industrial-relations conditions. The findings indicate that implementing the decision requires harmonized and adaptive labor policies through a tripartite approach involving government, employers, and workers. Existing mitigation measures by the Sukabumi Regency Government remain largely reactive and lack a comprehensive policy framework. This study proposes a collaborative mitigation model encompassing regulatory adjustment, strengthened social dialogue, improved labor productivity, and a fair Regency-Level Sectoral Minimum Wage (UMSK) based on sectoral productivity, business capacity, and investment competitiveness.