Indonesian Political, Business & Finance News

Government's Determination to Accelerate Drafting of the Labour Law

| | Source: KOMPAS Translated from Indonesian | Regulation
Government's Determination to Accelerate Drafting of the Labour Law
Image: KOMPAS

JAKARTA, KOMPAS.com - The government and the DPR have begun accelerating the preparation of a new Labour Law, targeted for completion in 2026. This push for speed has gained momentum alongside demands from workers and the mandate of the Constitutional Court (MK) ruling to comprehensively update labour regulations. President Prabowo Subianto has even requested that the legislative process be completed as soon as possible, emphasising that the new rules must favour workers. “If possible, it should be finished this year as well. And the law must side with the working class,” said Prabowo during the International Labour Day (May Day) commemoration at Monas, Jakarta, on Friday (1/5/2026). “I have also given instructions to the Minister of Manpower and the Minister of Law to immediately, together with the DPR RI, finalise the Labour Bill,” he stated. Deputy Speaker of the DPR Sufmi Dasco Ahmad said that the government and the DPR have agreed to target the new Labour Law to be completed no later than the end of 2026. “The government and the DPR have agreed that no later than the end of this year we will implement the Constitutional Court’s decision to form a new Labour Law,” said Dasco at the DPR Building on Friday. According to him, the formation of this law is a direct follow-up to the MK’s decision, so it is not merely revising the old rules, but compiling new regulations from the beginning. The DPR will await the results of the formulation from both parties before bringing the draft to parliament for formal discussion. “This is a new law, not revising the old law. So the materials are actually requested from our labour friends on what must be included,” said the Gerindra Party politician. He encouraged labour organisations to sit together with the Indonesian Employers Association to compile key points in the regulation. “Once it’s mature there, then it will be brought to the DPR, we discuss it together with the government,” said Dasco. The involvement of labour, he continued, will be expanded so that the resulting law does not end up being challenged again at the MK.

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