The law had been designed to streamline bureaucratic procedures, spur investment and boost labour competitiveness, but critics argued comprehensive revisions took place that were rushed through without sufficient consultation.
Deni Ferdiansyah, 43, who joined union members outside the court, said the judges had sided with the workers.
“We feared the Constitutional Court would be pro-government, but thank God they still used their conscience,” Deni said.
“This law makes labourers suffer, especially when it comes to the minimum wage.”
Among other complaints had been rules on severance pay, contract labour and outsourcing, and a stipulation that environmental studies only be required for high-risk investments.
Said Iqbal, chief of the KSPI labour union, said workers “highly appreciate” the court, adding: “We believe there’s justice to be had.”
KSPI lawyer, Said Salahudin, said the whole process of drafting the law should be restarted.
“This isn’t a normal ruling, it was very bold for the Constitutional Court to do this,” he said.
“Anything related to labour policies that are strategic and have wider implications needs to be suspended.”
Source: Channel News Asia