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Indonesia legislative and economic reform efforts

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

What changed

2026-08-14 08:00 UTC → 2026-08-15 03:34 UTC · added removed

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.” Ongoing debates continue KSPI President Said Iqbal has urged the government to focus 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 fair wages, outsourcing, wage structures, and protections social security for contract workers as the DPR receives further input to align regulations with the evolving business ecosystem. platform workers.

Versions

  1. 2026-08-15 03:34 UTC Indonesia legislative and economic reform efforts
  2. 2026-08-14 08:00 UTC Indonesia legislative and economic reform efforts
  3. 2026-08-14 00:23 UTC Indonesia legislative and economic reform efforts
  4. 2026-08-13 07:34 UTC Indonesia legislative and economic reform efforts

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