Indonesia APINDO labor reform push

In late July 2026, the Association of Indonesian Employers (APINDO) called for a comprehensive overhaul of Indonesia’s labour‑law framework, seeking input from the Financial Stability Committee and urging faster implementation of key trade agreements to improve competitiveness. The association announced that its draft proposals would be debated at a national work meeting in Makassar scheduled for early August.

During the 35th National Working and Consultation Meeting in Makassar on 3‑4 August, APINDO’s agenda moved from proposal to dialogue. Government representatives, including the Deputy Chairman of KADIN and the Labour Minister, highlighted the need to align workers’ skills with industry demands, noting a significant skills mismatch across firms. The meeting reinforced APINDO’s role in fostering business‑government collaboration on labour market reforms and underscored the government’s commitment to a “skills‑first” approach as part of the broader labour‑law reform effort.