Businesses warn against more rigid manpower law
The Indonesian Employers Association (Apindo) pointed out issues faced by businesses, such as shifting investment toward capital-intensive industries and the declining capacity of several sectors to absorb jobs.
The Indonesian Employers Association (Apindo) has expressed concerns over the potential impact of more stringent labor legislation on businesses in Indonesia. According to Apindo, the proposed manpower protection bill, set to be passed next week, could lead to increased business costs and deter investment as lawmakers focus solely on workers' protection.
Apindo chairwoman Shinta Kamdani called for balanced regulation that prioritizes both workers' protection and improving the country's competitiveness and job opportunities.
Apindo highlighted issues businesses are already facing, such as shifting investment towards capital-intensive industries and several sectors' declining capacity to absorb jobs. This shift has contributed to the growth of the informal sector in the country. Shinta emphasized that the new regulation must provide protection and certainty for businesses to maintain productivity, attract investment, and foster job creation.
She cautioned that imposing additional obligations, restrictions on employment relationships, and expanding sanctions without proper impact assessment or implementation mechanisms could undermine these goals. Apindo joins sectoral associations in expressing caution regarding the bill's provisions, stressing the need for a balanced approach.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
