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16 clusters · 43 sources · 56 days · First seen 2 months ago · Last updated 6 days ago

Indonesia passes new Labor Protection Law

Overview

Following the passage of the Labor Protection Law (UU Pelindungan Ketenagakerjaan) by the Indonesian House of Representatives on October 6, 2026, further details have emerged regarding specific employment constraints and protections. The legislation, which responds to a Constitutional Court mandate to separate labor regulations from the Job Creation Law, introduces strict anti-discrimination measures in recruitment and wages. It explicitly prohibits employers from withholding workers’ diplomas or personal documents.

Newer specifics clarify the limitations on outsourcing and apprenticeships. While previous reports noted restrictions on outsourcing, updated details specify that outsourcing is limited to several sectors: catering, security, cleaning, driving, operational support services, and support roles within the mining, oil, gas, and electricity sectors. For these workers, the total contract duration is capped at four years, consisting of an initial two-year contract followed by a maximum of two one-year extensions. Apprenticeship rights have also been formalized, with terms limited to a maximum of six months and requirements for stipends and occupational safety coverage.

The law continues to expand social protections to informal and digital platform workers to provide greater legal certainty for the gig economy. However, online driver communities, such as KAJOL, have urged lawmakers to maintain work flexibility and avoid standardizing driver status as formal employees. While the government maintains the law balances worker rights with business sustainability, tensions remain between the Indonesian Employers Association (Apindo) and labor unions. Unions have expressed concerns regarding layoffs, severance pay, and the potential for the law to retain controversial elements of the previous Omnibus Law. Notably, the law removes the 0.5 multiplier for severance pay, establishing a minimum multiplier of one, and creates a framework for severance pay reserve funds.

Entities

DPR RI · Yassierli · Ministry of Manpower · Partai Buruh · Said Iqbal

Claims

What the coverage asserts, and how many sources carry each claim.

[● 5 SOURCES] The Indonesian House of Representatives (DPR) passed the Labor Protection Law.
[● 5 SOURCES] The Labor Protection Law prohibits companies from withholding employees' diplomas and personal documents.
[● 4 SOURCES] The Labor Protection Law introduces a severance pay reserve fund to ensure compliance by employers.
[● 3 SOURCES] The Indonesian House of Representatives (DPR) passed the Satu Data Indonesia bill into law.
[● 3 SOURCES] The new Labor Protection Law removes the 0.5 multiplier for severance pay, setting a minimum multiplier of one.
[● 2 SOURCES] The Satu Data Indonesia law regulates blockchain, artificial intelligence, data security, interoperability, and overseas data transfers.
[○ 1 SOURCE] Labor unions in Tangsel are urging the regional government to recommend that the DPR RI expedite and pass the Labor Bill.
[○ 1 SOURCE] Unions are pushing for the Labor Bill to be finalized by October 31.
[○ 1 SOURCE] Disagreements in the Labor Bill currently involve outsourcing, internships, and mining.
[○ 1 SOURCE] The Confederation of Nusantara Labor Unions (KSPN) proposes replacing the outsourcing system with direct contract hiring.
[○ 1 SOURCE] Outsourcing is argued to be more expensive for companies due to additional service fees paid to third-party agencies.
[○ 1 SOURCE] KSPN reported instances where outsourcing workers received only half of the wages allocated by the user company.

Timeline

6 days ago

[BUSINESS] 3 sources
Indonesian labor unions urge presidential signing of new protection law
Indonesian labor unions are urging President Prabowo Subianto to sign the new Labor Protection Law while simultaneously proposing minimum wage increases of 7.5% to 9.5% for 2027.
12 days ago

[BUSINESS] 3 sources
DPR RI to limit outsourcing under Labor Protection Law
The Indonesian House of Representatives will limit outsourcing to specific sectors, such as security and cleaning, to ensure worker protections under the Labor Protection Law.
20 days ago

[POLITICS] 10 sources
Indonesia passes new Labor Protection Law
Indonesia has enacted a new Labor Protection Law, introducing stricter anti-discrimination rules, enhanced severance, and specific regulations for apprentices and outsourcing workers.
20 days ago

[POLITICS] 2 sources
KSPI highlights loopholes in Indonesia's new Labor Protection Law
KSPI and the Labor Party have accepted Indonesia's new Labor Protection Law with critical notes, highlighting concerns over wage suspension definitions, apprenticeship exploitation, and severance pay.
22 days ago

[POLITICS] 24 sources
Indonesia passes new Labor Protection and Satu Data Indonesia laws
Indonesia has passed the Labor Protection Law, reforming severance pay and contract limits, and the Satu Data Indonesia Law, regulating AI, blockchain, and national data governance.
26 days ago

[BUSINESS] 7 sources
Indonesia debates Labor Protection Bill amid union and employer concerns
Indonesian labor unions, employers, and the government are negotiating the Labor Protection Bill, debating critical issues such as wages, outsourcing, and working hours to modernize labor laws.
30 days ago

[POLITICS] 2 sources
Indonesia Ministry of Manpower: Labor Protection Bill not yet finalized
Indonesia’s Ministry of Manpower reports that the Labor Protection Bill is still under discussion, with identified issues rising to over 2,100 as seven ministries work with the DPR on a final draft.
about 1 month ago

[BUSINESS] 3 sources
Ojol drivers urge DPR to maintain work flexibility in Labor Protection Bill
Online motorcycle taxi drivers in Indonesia are urging the DPR to maintain work flexibility in the new Labor Protection Bill, fearing formal employment status will harm part-time and female drivers.
about 1 month ago

[POLITICS] 6 sources
Indonesia targets October 2026 ratification for Labor Protection Bill
Indonesia aims to ratify the Labor Protection Bill by October 8, 2026, focusing on balancing investment and welfare while addressing the rise of digital platform workers and flexible employment models.
about 1 month ago

[POLITICS] 3 sources
DPR RI discusses labor protections and transportation safety standards
Indonesian lawmakers are debating labor protections for online drivers and addressing critical safety standards for maritime electric vehicle transport and general public transportation.
about 1 month ago

[BUSINESS] 3 sources
Indonesia Manpower Minister links 2027 wage hike to new labor bill
Indonesia's Manpower Minister says the 2027 minimum wage formula depends on the upcoming Labor Protection Bill, amid labor union demands for a 7.5% to 9.5% increase.
about 1 month ago

[POLITICS] 3 sources
Indonesian Government submits Labor Protection Bill feedback to DPR
The Indonesian government submitted its List of Problem Inventories for the Labor Protection Bill to the DPR RI, focusing on workforce planning, training, and worker welfare.
about 2 months ago

[POLITICS] 3 sources
Indonesian workers protest draft labor legislation
Around 50,000 Indonesian workers protested across 30 regions against a draft labor bill, citing concerns over job security, wages, and contract work regulations.
about 2 months ago

[POLITICS] 6 sources
Indonesia advances labor reforms and gig worker protections
Indonesia is advancing labor reforms, including the Gig Worker Bill and discussions on replacing outsourcing with direct contracts to enhance worker protections and legal certainty.
about 2 months ago

[POLITICS] 4 sources
Indonesia proposes labor law reforms and stricter forest fire penalties
Indonesia's DPR RI proposes expanding worker social security via the Labor Protection Bill, while analysts call for tougher corporate fines to deter forest and land fires.
2 months ago

[POLITICS] 4 sources
DPR RI approves Labor Protection Bill as parliamentary initiative
The Indonesian House of Representatives has approved the Labor Protection Bill as a parliamentary initiative to strengthen worker rights, including protections for informal and digital platform workers.

Sources

antaranews.com · bantenekspres.co.id · bisnis.liputan6.com · bloggerborneo.com · clovermedia.jp · cnbcindonesia.com · disway.id · economy.okezone.com · ekbis.harianjogja.com · ekbis.sindonews.com · en.antaranews.com · fintechnews.id · gerindra.id · globalcybernews.com · harianjogja.com · indimanado.com · indonesiamaritimenews.com · inews.id · insight.kontan.co.id · jawapos.com · jpnn.com · jurnas.com · kabartarakan.com · katadata.co.id · m.jpnn.com · majalahindonesia.id · malutpost.id · matamata.com · mediakampung.com · minanews.net · minews.id · nasional.sindonews.com · nu.or.id · okezone.com · republika.co.id · rri.co.id · sulselsatu.com · sumeks.disway.id · time.news · tirto.id · ulasan.co · viva.co.id · world-today-news.com

This summary has been updated 24 times: see revision history