Indonesia debates Labor Protection Bill amid union and employer concerns

Stakeholders in Indonesia are debating the Labor Protection Bill (RUU Pelindungan Ketenagakerjaan), which is currently being discussed by the government and the House of Representatives (DPR). The Ministry of Manpower, led by Minister Yassierli, stated that the new regulation aims to modernize the 23-year-old Law No. 13 of 2003 to better address the changing dynamics of the modern workforce, including competency training and recruitment processes.

Labor groups, specifically the Confederation of Indonesian Trade Unions (KSPI), are monitoring ten strategic issues. These include wages, layoffs (PHK), severance pay, outsourcing, contract workers (PKWT), working hours, and protections for female workers. KSPI is advocating for fair wage structures and stricter limits on outsourcing.

Conversely, the Indonesian Employers Association (APINDO) has expressed concern that the bill might be too populist or restrictive. Business leaders warn that overly rigid regulations could stifle investment and exacerbate unemployment. Additionally, the Indonesian Footwear Association (Aprisindo) has proposed increasing the standard work week from 40 to 45 hours to improve competitiveness against regional rivals like Vietnam.