More than 1,000 people turned out in Jakarta on Thursday to push for tougher worker safeguards, a fraction of the 50,000 organizers had forecast. Many wore blue union gear as they moved north on one side of the capital's key business corridor, Jalan Sudirman, snarling traffic and prompting police to redirect cars to nearby roads.
Participants came from a coalition of labor groups that includes the heavyweight KSPSI, chaired by Andi Gani Nena Wea. Union representatives also delivered an 11-point petition to President Prabowo Subianto's office. The coalition says more demonstrations are planned outside Parliament in the weeks ahead as talks on the bill hit the home stretch.
Unions want tighter guardrails on outsourcing and fixed-term contracts, tweaks to wage setting, and stronger protections against layoffs. They are pushing to cap fixed-term contracts at one year, confine outsourcing to a narrow set of support roles, and strengthen protections for workers on digital platforms.
When change is in the air, steady financial habits help protect your savings. Join Briefs Finance CEO Jaspreet Singh on September 29th for a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, where he shows how we're spotting investment opportunities as the dollar falls. Save your spot.
The Constitutional Court ruled in October 2024 that employment sections must be split out from the sweeping Job Creation Law and turned into a separate labor statute within two years, and it reaffirmed that in June. Should Parliament fail to meet the Oct. 31 cutoff, the court indicated that the 2003 labor law, along with its associated rulings, would be reinstated.
Parliament plans to broker talks between unions and employers and is aiming to finish the bill in October. On Thursday, Presidential Chief of Staff Dudung Abdurachman stated that the bill remained pending approval, and Deputy House Speaker Sufmi Dasco Ahmad added that differences between labor and employer stances still must be bridged, Antara reported.
This overhaul could reshape how companies hire and pay across Indonesia, the largest economy in Southeast Asia. The national statistics agency counts about 148 million people employed as of May out of a labor force topping 155 million, with millions working informally even as growth holds above 5%. Translation: any shift in outsourcing, contract terms, severance, or platform work rules could ripple through everyday jobs, prices, and household budgets.
Thoughtful planning can help your money grow through uncertainty and shifting priorities. Our CEO Jaspreet Singh is hosting a FREE live investor workshop, How to Profit From A Dollar That's Losing its Value, on September 29th. Sign up free to join him live.
