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Indonesia Labor Protection and Gig Worker Bill development

Updated 3 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-10 05:58 UTC → 2026-09-10 23:55 UTC · added removed

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). Legislator Syaiful Huda emphasized that such regulation is essential to provide legal certainty for flexible and platform-based workers, noting that gig schemes could eventually involve up to 40 percent of the population. In recent developments, On September 10, 2026, approximately 50,000 workers from the Confederation of Nusantara Labor Unions (KSPN) has urged Koalisi Besar Perjuangan Buruh Indonesia (KBPBI) staged widespread demonstrations across 30 regions. Protesters argued the immediate passage draft bill retains controversial elements of the Labor Law Bill, previous Omnibus Law, specifically targeting issues such as fixed-term employment contracts (PKWT), outsourcing, internship programs, wage structures, and mining apprenticeship regulations. In meetings with Manpower Minister Yassierli, KSPN Labor leaders from KASBI and GSBI demanded a one-year ceiling for contract work instead of the proposed replacing four-year maximum, criticizing the outsourcing system with direct contract hiring apprenticeship framework as a mechanism for cheap labor. The Ministry of Manpower aims to improve worker protection and company cost efficiency, while also raising concerns regarding wage deductions finalize the legislation by outsourcing firms. October 2026.

Versions

  1. 2026-09-10 23:55 UTC Indonesia Labor Protection and Gig Worker Bill development
  2. 2026-09-10 05:58 UTC Indonesia Labor Protection and Gig Worker Bill development
  3. 2026-09-08 13:46 UTC Indonesia Labor Protection and Gig Worker Bill development
  4. 2026-09-03 12:17 UTC Indonesia Labor Protection Bill development

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