Celios Urges Consistent Enforcement of Labour Regulations

From the perspective of investment and law, economic sentiment and investor confidence fundamentally depend on the aspect of law enforcement.

he Director of Legal Affairs at the Centre for Economic & Law Studies (Celios), Muhammad Saleh, is urging the consistent application of labour regulations to provide legal certainty and support the investment climate, particularly during the discussions of the Labour Bill.

“From the perspective of investment and law, economic sentiment and investor confidence essentially depend on the aspect of law enforcement,” he stated in a confirmed statement in Jakarta on Tuesday.

Saleh noted that certainty in the application of rules is crucial because investors have frequently faced regulatory changes, particularly regarding law and licensing, which have not always been implemented consistently. Consequently, investors are forced to incur legal costs to address legal uncertainties.

According to him, the challenges in implementing labour regulations must also consider supervisory capacity. Based on data from the Ministry of Manpower, there are approximately 1,400 labour inspectors tasked with overseeing at least 400,000 medium and large companies, excluding millions of other registered business entities.

Saleh stated that this condition must be taken into consideration by the government to ensure that labour regulations can be applied consistently on the ground. Regulatory certainty is determined not only by the substance of the rules but also by their implementation and enforcement.

Meanwhile, Fitriana, a lecturer in State Administrative Law Studies at the University of Indonesia (FHUI), believes that labour regulations should distinguish between violations of basic and serious rights and mere administrative infractions. She also addressed the possibility of corporate criminal liability within the Labour Bill, suggesting that the designation of responsible parties should be specific to the actions committed. She noted that financial sanctions for certain violations could be an option, considering their effectiveness in restoring workers’ rights and preventing repeat offences.

Previously, the Indonesian Employers Association (Apindo) stated that worker protection and the expansion of job access must be balanced within the Labour Bill currently being discussed by Commission IX of the House of Representatives (DPR RI).

“We are conveying that if we are to use the name ‘Worker Protection Law’, we must ensure it is balanced—not just protection, but also the expansion of employment opportunities,” said the General Chair of Apindo, Shinta W. Kamdani, in Jakarta on Monday.

“I believe this is important because job creation is a primary objective. Therefore, regardless of the name, the substance must encompass that balance,” she added.

Furthermore, Shinta noted that discussions are currently ongoing between representatives of the business and industrial sectors, labour unions, and Commission IX of the DPR RI. Each party is providing input to ensure the Labour Bill provides protection for both workers and business actors amidst the rapidly changing dynamics of the modern workforce, which demands agility to adapt.