Labour Protection Law Officially Passed, When Will It Take Effect?

Jakarta, CNBC Indonesia - The Labour Protection Law was officially passed by the House of Representatives (DPR RI) today, Tuesday (6/10/2026). Despite being ratified, the new policy will not take effect immediately.

The Director General of Industrial Relations and Social Security at the Ministry of Manpower, Indah Anggoro Putri, stated that the new law includes a one-year transition period from the date of its enactment and promulgation. This means that the provisions within the Labour Protection Law will only become enforceable once this transition period has concluded.

“Next year, this law will not be immediately enforceable upon being passed,” said Indah when met following the ratification of the Labour Protection Law at the Parliament Complex, Jakarta.

Indah explained that the new law will come into force one year after being enacted and promulgated. Consequently, the regulations contained within the policy will begin to be applied in 2027, including wage regulations.

“One year from the date of enactment and promulgation,” she noted.

Due to this transition period, the new wage regulations are estimated to be utilised only during the determination of the minimum wage for 2028.

“(Will the 2028 Provincial Minimum Wage use this new law?) God willing,” she replied.

The new Labour Protection Law contains several new provisions regarding wages. One of these is that the Decent Living Standard (KHL) survey will be conducted by the Central Bureau of Statistics (BPS) in consultation with wage councils.

“There will be new elements, such as the KHL survey conducted by BPS, in consultation with wage councils,” Indah explained.