API: Labour Protection Bill Hits the Business World
The Executive Director of the Indonesian Textile Association (API), Danang Girindraward<0xA0>wardana, believes that the Labour Protection Bill has the potential to hinder business growth if the proposed regulations are too strict. There are concerns that such conditions could cause business players to withhold expansion and investment, thereby reducing employment opportunities.
According to Danang, the objective of providing protection to workers must be balanced with certainty and space for the business world to flourish. If the regulatory burden becomes too heavy, business owners are feared to hold back on expansion and investment.
“This Labour Protection Bill, while having the mission to protect workers, contains rules that are so strict they do not allow the business world to grow,” Danang said in South Jakarta on Monday (5/10/2026).
He stated that a lack of business growth would directly impact investment decisions. This situation could ultimately diminish a company’s ability to create new jobs.
“If the business world does not grow and invest, it will not open new jobs; instead, it will reduce the existing workforce and will not expand or widen its business base,” he added.
Danang assessed that the business community’s concerns regarding the provisions in the Bill could make companies more cautious in pursuing expansion. This is despite the fact that investment and business expansion are necessary to create new employment opportunities.
“Due to excessive concern, instead of providing protection to workers, it might actually eliminate job opportunities,” he emphasised.
He noted that this issue needs to be a primary focus during the discussions of the Labour Protection Bill. Labour regulations, according to Danang, should not only be oriented towards worker protection but also ensure that the business world maintains the space to grow and absorb labour.
“This is what we must recognise directly from this draft law. This bill hits the business world too hard rather than fulfilling its intention to protect the workforce,” Danly concluded.