Indonesia sees drop in unemployment and drafts gig‑worker protection law

Indonesia's labour market shows signs of improvement. According to the Statistics Agency (BPS), the open unemployment rate (TPT) fell to 4.68 % in February 2026, with 7.24 million people unemployed – a decline of about 35 000 from the previous year. The figures continue a downward trend from a peak of 9.10 million in August 2021.

At the same time, a public consultation was held on a draft law to protect gig‑economy workers. Representatives from the DPR’s expert body, the University of Jember and other stakeholders discussed provisions such as health coverage, severance pay, leave, dispute resolution and intellectual‑property protection for freelancers, contract and part‑time workers. The draft aims to balance employer responsibilities with the flexibility that gig work provides, and seeks to give legal certainty to millions of Indonesian gig workers.