# Indonesia labor law reform debate

> Live situation record from CLSTR: https://clstr.news/situations/indonesia-labor-law-reform-debate
> Updated: 2026-08-06T06:42:50.000Z. Sources: 6. Developments: 2.

On 3 August 2026 a coalition of 18 Indonesian labor confederations handed a draft Employment Bill to the House deputy speaker, urging lawmakers to replace provisions of the 2020 Job Creation Law. The coalition warned that if the draft were ignored, large‑scale unrest could erupt in August, recalling protests that followed earlier omnibus reforms.

Three days later, the Confederation of Indonesian Trade Unions (KSPI) publicly dismissed rumours of such demonstrations, stating it would not organise major protests in August or September. KSPI leader Said Iqbal expressed optimism that three of its four key demands – outsourcing regulation, removal of a tax on old‑age security fund withdrawals, and higher severance pay – would be settled by September, and emphasized a focus on policy negotiations rather than street actions.

## Timeline

### 2026-08-06: Indonesia's KSPI Says No Major Labor Protests Planned for Aug‑Sept 2026

KSPI head Said Iqbal says no major protests are planned for Aug‑Sept 2026 and expects three of four labor demands—outsourcing rules, JHT tax removal, and higher severance pay—to be resolved by September.

4 sources. https://clstr.news/cluster/indonesias-kspi-says-no-major-labor-protests-planned-for-augsept-2026

### 2026-08-03: Indonesia Labor Coalition Submits Draft Employment Bill, Warns of August Unrest

Indonesia's Great Labor Struggle Coalition submitted a draft Employment Bill to the DPR, urging fast action before the Oct 31 2026 deadline and warning of possible August unrest.

2 sources. https://clstr.news/cluster/indonesia-labor-coalition-submits-draft-employment-bill-warns-of-august-unrest

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Cite as: Indonesia labor law reform debate. CLSTR, https://clstr.news/situations/indonesia-labor-law-reform-debate