Government Prepares New Labour Law, Details Emerge

Jakarta – The government is preparing new labour regulations as part of an adjustment to national labour policy. This move is also linked to various discussions in international trade agreements involving Indonesia.

“Firstly, we are currently drafting a new labour law,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Ministry of Manpower on Friday, 27 February 2026.

The regulatory review covers various important issues, including the regulation of contract work systems and outsourcing. These topics have emerged in discussions regarding trade cooperation between Indonesia and the United States.

Several points in the cooperation agreement are said to include labour aspects that need to be followed up through national regulations.

The government is ensuring that the process of drafting the regulations will be conducted through the applicable legislative mechanism. The new regulations are expected to provide legal certainty for the business world whilst protecting workers.

The government also believes that updating labour regulations is important for adapting to the dynamics of the developing labour market. Additionally, the policy is expected to enhance Indonesia’s investment competitiveness.

“So that will eventually be included in the new labour law,” said Airlangga.