API States Labour Bill Could Potentially Hinder Business World

The Indonesian Textile Association (API) believes that the Labour Protection Bill has the potential to hinder business growth due to excessively strict regulations, according to reports on Monday (5/10/2026). There are fears that these regulations may prompt business owners to withhold expansion and investment.

As reported by Investor Daily, labour protection should be balanced with certainty and room for business development. An excessive regulatory burden is projected to slow the pace of investment in the country.

“The mission of this Labour Protection Bill is to protect workers, but the rules being created are so strict that they make it impossible for the business world to grow,” said Danang Girindrawardana, Executive Director of the Indonesian Textile Association (API), in South Jakarta.

Stagnant business growth is believed to directly impact corporate investment decisions. The subsequent impact of this condition is a reduced capacity within the industrial sector to create new employment opportunities.

“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 broaden its business base,” he said.

Concerns regarding the draft regulation risk causing business players to take a cautious approach to expanding their operations. This is despite the fact that investment incentives are desperately needed to create job opportunities for the public.

“Because of excessive concern, instead of providing protection to workers, it will actually eliminate job opportunities,” Danang emphasised.

The discussion process for the Labour Protection Bill is expected to consider a balance between workers’ rights and business sustainability. Regulations are deemed necessary to ensure room for business growth so that the workforce can be absorbed optimally.

“This is what we must recognise directly from this draft bill. This bill hits the business world too hard rather than intending to protect the workforce,” Danum concluded.