Indonesia's Labor Law Revision to Address AI Disruption

Member of the House of Representatives, Pulung Agustanto, called for the upcoming revision of Indonesia's labor law to explicitly consider the impact of artificial intelligence (AI). He warned that the existing 2003 law and the newer Job Creation law were drafted for a largely physical‑work era and do not anticipate AI replacing both manual and cognitive tasks.

Pulung argued that future regulations must protect workers from opaque algorithmic decisions that affect job assignments, productivity assessments and incentive distribution. He urged that companies benefiting from technological efficiency should also ensure opportunities for workers to upgrade their skills, preventing a widening gap as AI becomes more pervasive in the workplace.