Indonesian Political, Business & Finance News

Legislator: Labour Bill Must Be Adaptive to Workforce Dynamics

| Source: ANTARA_ID Translated from Indonesian | Regulation
Legislator: Labour Bill Must Be Adaptive to Workforce Dynamics
Image: ANTARA_ID

Jakarta (ANTARA) - Member of Commission IX of the Indonesian House of Representatives (DPR RI), Edy Wuryanto, believes that the drafting of the Labour Law revision bill (RUU Ketenagakerjaan) must be adaptive to the dynamics of the world of work faced by businesses, industry and workers.

“The challenge is the rapid dynamics of the world of work, from the gig economy to the development of automation and artificial intelligence (AI), so the drafting requires time to ensure this bill can be adaptive to those needs and changes,” Edy told ANTARA in Jakarta on Monday.

During a working meeting of Commission IX with the Indonesian Employers’ Association (Apindo) and workers’ representatives earlier that day, Edy said around 80 percent of proposals from workers have been accommodated in the draft Labour Law revision bill.

He continued that although differences of view with Apindo remain, the discussion results show up to 70 percent similarity in substance between the two parties’ drafts regarding the revision of this regulation.

“We are currently entering the synchronisation stage between the business world and workers. So far it is 70 percent aligned, leaving 30 percent to reconcile perceptions,” Edy said.

The DPR RI together with the government is currently deliberating the Labour Law revision bill as a follow-up to the Constitutional Court (MK) ruling.

“We are certainly targeting the deliberation of the Labour Law revision bill to be completed in line with the MK’s target, namely in October. We are now pushing to achieve that target, especially regarding worker protection,” Edy said.

Furthermore, he said the bill is being prepared as a new standalone law, separate from the Job Creation Law (Undang-Undang Cipta Kerja).

The deliberation of the Labour Law revision bill covers a number of strategic issues related to Indonesia’s labour market conditions, including the status of fixed-term employment agreements (PKWT), outsourcing rules, wages, severance pay, employment social security, and protection for digital platform workers.

“The deliberation of the Labour Law revision bill must also find a balance between worker protection and business sustainability,” Edy said.

Meanwhile, the General Chair of the Confederation of All Indonesian Workers’ Unions (KSPSI), Andi Gani Nena Wea, urged the DPR RI not to rush the drafting of this Labour Law revision bill.

“We hope our friends in the DPR truly understand this, because it is very risky if the labour law is treated carelessly in its drafting—it is extremely dangerous. Because unwanted social conflict will certainly occur, the anger of workers who are eagerly awaiting this law,” Andi Gani said.

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