# Indonesia Labor Protection and Gig Worker Bill development > Live situation record from CLSTR: https://clstr.news/situations/indonesia-labor-protection-bill-development > Updated: 2026-09-09T23:43:08.000Z. Sources: 15. Developments: 4. The Indonesian House of Representatives (DPR RI) has approved the Labor Protection Bill as a parliamentary initiative to fulfill a Constitutional Court mandate regarding the Job Creation Law. The bill aims to provide legal certainty for worker rights, including protections for those in the informal sector and digital platforms. Recent discussions have focused on strengthening severance pay schemes. Commission IX Vice Chair Nihayatul Wafiroh noted that Article 129 seeks to manage severance funds through BPJS Ketenagakerjaan rather than allowing companies to maintain internal reserves under PSAK 24 accounting standards. This measure is intended to ensure workers receive payments even during corporate bankruptcy or financial distress. Labor unions, represented by KSPI President Said Iqbal, have characterized the draft as an improvement over the Omnibus Law and Law No. 13 of 2003, citing advancements such as job loss insurance and criminal sanctions for employers who fail to honor worker rights. However, unions are advocating for a broader definition of workers to encompass journalists, medical professionals, and maritime workers. Parallel to these developments, legislators are highlighting the need for a specific Gig Worker Bill, slated for the 2026 National Legislation Program (Prolegnas). On September 10, 2026, approximately 50,000 workers from the Koalisi Besar Perjuangan Buruh Indonesia (KBPBI) staged widespread demonstrations across 30 regions. Protesters argued the draft bill retains controversial elements of the previous Omnibus Law, specifically targeting fixed-term employment contracts (PKWT), outsourcing, wage structures, and apprenticeship regulations. Labor leaders from KASBI and GSBI demanded a one-year ceiling for contract work instead of the proposed four-year maximum, criticizing the apprenticeship framework as a mechanism for cheap labor. The Ministry of Manpower aims to finalize the legislation by October 2026. ## Claims - Labor unions in Tangsel are urging the regional government to recommend that the DPR RI expedite and pass the Labor Bill. (single source) - Unions are pushing for the Labor Bill to be finalized by October 31. (single source) - Disagreements in the Labor Bill currently involve outsourcing, internships, and mining. (single source) - The Confederation of Nusantara Labor Unions (KSPN) proposes replacing the outsourcing system with direct contract hiring. (single source) - Outsourcing is argued to be more expensive for companies due to additional service fees paid to third-party agencies. (single source) - KSPN reported instances where outsourcing workers received only half of the wages allocated by the user company. (single source) - The Manpower Ministry views National Labor Force Survey (Sakernas) data as strategic for monitoring labor market conditions and diagnosing skill mismatches. (single source) ## Timeline ### 2026-09-09: 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. 3 sources. https://clstr.news/cluster/indonesian-workers-protest-draft-labor-legislation ### 2026-09-07: 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. 6 sources. https://clstr.news/cluster/indonesia-discusses-labor-protection-and-gig-worker-bills ### 2026-09-02: 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. 4 sources. https://clstr.news/cluster/indonesia-forest-fire-law-enforcement-needs-strengthening ### 2026-08-27: 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. 4 sources. https://clstr.news/cluster/dpr-ri-approves-labor-protection-bill-as-parliamentary-initiative --- Cite as: Indonesia Labor Protection and Gig Worker Bill development. CLSTR, https://clstr.news/situations/indonesia-labor-protection-bill-development