Workers Demand Job Security, Employers Emphasise Investment Climate

Jakarta — Indonesian labour confederations KSPSI and KSBSI are urging the DPR to fast-track the deliberation of the Labour Law (Rancangan Undang-Undang Ketenagakerjaan) and to enact it by September 2026 at the latest. The call was made at a meeting with Deputy Speaker of the DPR Sufmi Dasco Ahmad on Tuesday, 3 March 2026. KSPSI president Andi Gani Nena Wea said the Labour Law is a constitutional mandate (amanat Mahkamah Konstitusi, MK) that must be promptly acted upon. He noted that workers have not yet been actively involved in discussions in Commission IX of the DPR.

“We emphasise that the Labour Law must be formed soon because it is an MK mandate. We urge Commission IX as a stakeholder to engage seriously in the discussion. As of today, we feel we have not been actively involved,” Andi said.

MK has mandated a two-year window for formulating a new substantive Labour Law that would consolidate material from Law No. 13/2003 on Ketenagakerjaan, Law No. 6/2023, and several MK rulings.

The Labour Bill (RUU Ketenagakerjaan) has been designated as a priority within the National Legislation Program (Prolegnas) for 2025. At the DPR Plenary Session on 23 September 2025, the Labour Law was approved for priority consideration in 2026.

Andi noted that several crucial issues would be addressed in the revision, among them wage formula, outsourcing practices, fixed-term employment (PKWT), severance pay, termination of employment (PHK), and union-busting practices. He argued that some companies still easily dismiss workers and restrict union formation. Union busting, he said, is a violation of human rights as it impedes freedom of association.

“So we will set boundaries and determine what wage formulas should be standard and applicable by all regional governments,” Andi stated.

KSBSI president Elly Rosita Silaban added that the federation also seeks attention for the reactivation of the recipient register for wage-increase benefits (PBI) that had previously been deactivated. She hopes the current administration will speed up the regulation of labour and comprehensively accommodate workers’ aspirations.

“We hope under the leadership of Mr Prabowo and also Mr Dasco’s promise that this will continue to be discussed directly regarding the Labour Law, and we hope it will be enacted quickly—by September—and will also accommodate workers’ aspirations,” she continued.

Meanwhile, Deputy Speaker Sufmi Dasco Ahmad said the DPR agrees that the Labour Law discussion must involve all parties, including the government, workers’ unions, and employers’ associations, so that the resulting regulation enjoys broad agreement.

“We have also agreed that the DPR, the government, workers’ unions, and employers’ associations should participate so that we can eventually obtain a law that is truly acceptable to all,” Dasco said.

The DPR plans to launch public hearings for the RUU PPRT on 5 March. After Eid al-Fitr, it will hold a series of public hearings on labour issues, including aspects related to the Omnibus Law on Job Creation.

Separately, Apindo (Association of Indonesian Employers) chair Bob Azam told reporters that, going forward, the Labour Law must foster a healthy and sustainable investment climate. The regulation, in his view, should create business certainty while opening up employment opportunities as widely as possible.

“The Labour Law must be a law that promotes positive investment and legitimate business activity. That is the core of it,” he said.

He warned policy-makers should avoid measures that scare investors, noting that overly burdensome regulations could hinder business expansion and ultimately reduce employment opportunities.

“If policy makes people afraid to invest and to hire, what is the point?” he asked.

Azam argued that labour issues are often seen as a contest between two main groups—employers and workers—while another stakeholder, job seekers, is frequently overlooked. “Workers are those who already have jobs and are represented by unions. But there is a stakeholder who is often forgotten: job seekers. Who represents them? The government!” he said.

The government should not merely act as a referee between business and labour, but should actively advocate for the interests of the community seeking work, he added. Balance among three parties—employers, employed workers, and job seekers—was essential to ensure the regulation supports ongoing business viability, protects workers, and broadens opportunities for the new generation of workers.

Domin Dhamayanti, founder of Inti Solidaritas Buruh (ISB), argued that the discussion of the Labour Law should not be reduced to a tug-of-war between workers and employers, but should reflect the state’s duty to provide job certainty and a decent living for workers. He noted that workers’ aims largely align with employers’ in terms of business sustainability: employers seek certainty and continuity, while workers want job security.

“Companies want sustainability and certainty in business. Workers want certainty in work. A key narrative many workers agree on is the removal of repetitive contract systems and outsourcing because these undermine job security,” he said.