[REVISION HISTORY]

Indonesia passes new Labor Protection Law

Updated 24 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-15 23:46 UTC → 2026-10-23 06:03 UTC · added ~~removed~~

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 ~~four~~ several sectors: catering, security, cleaning, driving, operational support services, and ~~driving.~~ 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), which has raised concerns regarding outsourcing and minimum wages,~~ (Apindo) and labor ~~unions focusing on layoffs and~~ unions. Unions have expressed concerns regarding layoffs, severance ~~pay. The~~ pay, and the potential for the law ~~notably~~ 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. Recent clarifications from the House of Representatives (DPR RI) indicate that while outsourcing cannot be entirely eliminated due to global trends, it will be strictly regulated. Putih Sari, Vice Chair of Commission IX, noted that permitted categories may also include operational support services and support roles within the mining, oil, gas, and electricity sectors.

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