# Indonesia legislative and economic reform efforts > Live situation record from CLSTR: https://clstr.news/situations/indonesia-legislative-and-economic-reform-efforts > Updated: 2026-08-13T06:40:00.000Z. Sources: 20. Developments: 2. Indonesia is undergoing a series of legislative reforms aimed at modernizing various economic sectors. In late July 2026, the government announced plans to revamp cooperative and consumer protection laws. The proposed Cooperatives Bill seeks to replace the 1992 law to expand cooperatives into strategic industries and revive cooperative banking. Concurrently, the Ministry of Trade is revising the 1999 Consumer Protection Law to address e-commerce scams, misleading advertising, and the needs of vulnerable groups. By mid-August 2026, legislative efforts expanded to include labor relations. Following a Constitutional Court ruling, the House of Representatives (DPR) is accelerating the drafting of a new Labor Law Bill to replace parts of the existing Omnibus Law. The DPR is currently processing a draft consisting of 19 chapters and 224 articles. Labor unions and the Indonesian Employers Association (Apindo) have formed a joint team to draft this legislation, which includes plans for comparative studies in Southeast Asian nations like Vietnam, Thailand, Malaysia, and the Philippines to observe their industrial relations and investment climates. Specific tensions have emerged regarding severance pay. Labor groups, including the KSPI, are pushing for the repeal of Government Regulation No. 35 of 2021, arguing that the current “0.5x severance pay provision for efficiency-based layoffs is insufficient.” KSPI President Said Iqbal has urged the government to avoid rushing the process, noting the bill may expand to include digital platform workers, medical professionals, and academic staff. Meanwhile, the KBPBI is focusing oversight on outsourcing, wage structures, and social security for platform workers. ## Claims - Polda Metro Jaya predicts heavy traffic around the DPR/MPR building due to the President's State Address. (corroborated by 6 sources) - A total of 8,095 joint security personnel have been deployed to secure the Senayan area and other public events in Jakarta. (corroborated by 2 sources) - Situational traffic diversions and engineering will be implemented starting from 08:00 WIB. (corroborated by 2 sources) - Labor leaders are demanding the revocation of Government Regulation No. 35 of 2021 regarding 0.5x severance pay. (corroborated by 2 sources) - The initial draft of the Labor Law Bill consists of 19 chapters and 224 articles. (single source) - The new Labor Law Bill may expand the scope of regulated workers to include digital platform, medical, and academic workers. (single source) - The KBPBI coalition will monitor the Labor Law Bill, focusing on outsourcing, wages, severance, and social security. (single source) - Labor and employer leaders agreed to form a joint drafting team and conduct comparative studies in Vietnam, Thailand, Malaysia, and the Philippines. (single source) ## Timeline ### 2026-08-13: Indonesian labor leaders demand repeal of 0.5x severance pay rule Indonesian labor unions and employers are forming a joint team to draft the new Labor Law Bill, with unions demanding the repeal of regulations that limit severance pay to 0.5x. 20 sources. https://clstr.news/cluster/indonesia-labor-unions-and-employers-collaborate-on-labor-law-bill ### 2026-07-28: Indonesia moves to revamp cooperative and consumer protection legislation Indonesia plans a new Cooperatives Bill and a revised Consumer Protection Law, targeting sector modernisation, strategic expansion and stronger consumer safeguards, with parliamentary debate expected this year. 2 sources. https://clstr.news/cluster/indonesia-moves-to-revamp-cooperative-and-consumer-protection-legislation --- Cite as: Indonesia legislative and economic reform efforts. CLSTR, https://clstr.news/situations/indonesia-legislative-and-economic-reform-efforts