P3HKI: Workers at Risk of Losing Rights for Foreign Investment

JAKARTA — The Indonesian Association of Labour Law Educators and Practitioners (P3HKI) has reminded the government not to sacrifice workers’ rights in order to attract foreign investment. Social security for workers must be fulfilled from the beginning of the employment relationship, including by foreign investment companies operating in Indonesia.

P3HKI Deputy Chairman Ahmad Ansyori said the government does need to create a conducive climate for investment. However, he stressed that such efforts must not become an excuse to delay or ignore companies’ obligations to fulfil workers’ rights.

The statement was made by Ahmad during the BIG Strategic Forum 2026 discussion in Jakarta on Tuesday (9/6/2026). According to him, there are still practices that tolerate labour violations on the grounds that a company is in the business development stage.

Ahmad argued that such conditions cannot be used as a basis to set aside workers’ fundamental rights. Every worker who has been recruited remains entitled to social security protection as stipulated in the laws and regulations.

“Our Constitution states that every person has the right to social security,” Ahmad said.

He assessed that this situation could potentially create a paradox. On one hand, the government is trying to attract investment, but on the other hand, protection for workers risks being weakened if supervision and law enforcement do not function optimally.

Therefore, Ahmad emphasised that the government must ensure all companies comply with the labour provisions in force in Indonesia. Law enforcement, he said, must be part of the effort to create a healthy investment climate, not viewed as an obstacle to the business world.

“We invite foreign investment, but legal sovereignty must not be placed below investment,” he said.

Ahmad added that compliance with labour regulations actually provides legal certainty for both workers and business actors. In this way, investment activities can take place sustainably within a clear legal corridor.

He expressed hope that the government would strengthen supervision of the fulfilment of workers’ rights, especially in companies with foreign investment. According to him, investment growth must go hand in hand with improved protection and welfare of the workforce.