New manpower law to tilt balance to labor
Labor unions hail the new legislation as a win for workers, thanks to more rigid arrangements on contract work, outsourcing, layoffs and severance payments.
Labor unions have welcomed the newly passed Indonesian labor law, labelling it a victory for workers. The Coalition of Indonesian Trade Unions (KSPI) and the Labor Party's Chairman, Iqbal, stated that the new legislation was "far better" than the previous Job Creation Law. Iqbal explained that over 80% of labor unions' proposals had been incorporated into the bill, marking a "reversal" from the previous administration's approach, which he claimed favored business owners.
The Constitutional Court ordered the government to create a distinct labor law in October 2024, after which the House of Representatives began discussing the manpower protection bill in August. Although drafts of the legislation have been circulating for months, the final text has not been made public yet. Nihayatul Wafiroh, a lawmaker from the House Commission IX, revealed that the bill was currently being "polished" and suggested waiting for its release online.
However, she confirmed that the document had undergone significant changes from an earlier draft, which was deemed outdated.
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.
