The discussion regarding the Draft Labour Law (RUU Ketenagakerjaan)\nis being accelerated with the aim of completion by October 2026. The\nbusiness community has cautioned that the new regulations must not\nbecome an obstacle to Indonesia\u2019s targeted economic growth of 8%.<\/p>\n
Bob Azam, Chairman of the Labour Division of the Indonesian Employers\nAssociation (Apindo), stated that the drafting of the Labour Bill must\nbe directed towards becoming a \u2018prime mover\u2019 for the economy, rather\nthan a \u2018derailer\u2019 that obstructs growth. \u201cThe most important thing is\nhow this law can serve as a prime mover for our economy. It should not\nbe the opposite, where it becomes a derailer that prevents the 8%\neconomic growth we hope for,\u201d Bob told CNBC Indonesia on Wednesday\n(2\/9\/2026).<\/p>\n
According to him, achieving an 8% growth target cannot rely solely on\ndomestic potential. Indonesia requires foreign investment, meaning\nlabour regulations must be able to maintain Indonesia\u2019s competitiveness\ncompared to other ASEAN nations. \u201cTo reach 8%, we cannot rely only on\ndomestic potential. We need foreign investment to flow in,\u201d he\nadded.<\/p>\n
Bob believes that Indonesia\u2019s labour regulations should be drafted by\nconsidering practices prevalent in other ASEAN countries. He noted that\nregulations that are too divergent or deemed uncompetitive could\npotentially lead investors to choose other nations. \u201cTo ensure foreign\ninvestment enters, we must create laws that are not unusual compared to\nASEAN neighbours; the important thing is that we are on par within\nASEAN. This is what we have communicated to the government and the DPR,\u201d\nBob explained.<\/p>\n
He assessed that another challenge is the highly diverse nature of\nIndonesian industries. He argued that labour regulations cannot be\ncreated using a \u2018one size fits all\u2019 approach for all sectors. \u201cThere is\nno such thing as a \u2018one size fits all\u2019 regulation. We must provide room\nfor each sector to adjust to their specific conditions,\u201d he said.<\/p>\n
Bob cited the difference in work characteristics between the\nplantation sector and the hospitality sector as an example. Plantation\nworkers require rest period arrangements that suit their working\nconditions, whereas the hospitality sector has high labour demands\nduring weekends and public holidays. \u201cIn essence, we want to create\nregulations that provide business certainty and labour protection. But\nwe must not shoot ourselves in the foot,\u201d Bob emphasised.<\/p>\n
Previously, labour unions have been pushing for the Labour Protection\nBill to be passed no later than October 2026. This deadline relates to\nthe mandate of the Constitutional Court Decision Number\n168\/PUU-XXI\/2023, which requires the separation of the labour cluster\nfrom the Job Creation Law. Said Iqbal, President of the Confederation of\nIndonesian Trade Unions (KSPI), stated that the Bill must still be\npassed by October 2026, but warned that the timeline should not result\nin the sacrifice of worker protection substance.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/dpr-accelerates-labour-bill-employers-express-concerns-1788324867", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }