House Approves Labor Protection Bill

RRI.CO.ID, Jakarta - Indonesia’s House of Representatives (DPR RI) has approved a Labor Protection Bill that sets out comprehensive rules on workers’ rights, wages, social security, employment relationships, layoffs, and occupational health and safety, while seeking to strengthen protections for vulnerable workers and provide greater legal certainty for employers.

The bill, comprising 23 chapters and 313 articles, also covers industrial relations, severance pay reserve funds, labor supervision and investigations, as well as penal provisions. It is designed to accommodate changing employment patterns and the growing impact of technology and digital transformation on the labor market.

The House approved the bill for enactment into law during its ninth plenary session of the first session period of the 2026–2027 parliamentary year in Jakarta on Tuesday, October 6.

"We ask each faction whether the Labor Protection Bill can be approved for enactment into law?" DPR Speaker Puan Maharani said, prompting lawmakers to respond with their approval as quoted by Antara.

Deputy Speaker of Commission IX, Putih Sari, said the legislation is intended to establish a national labor system that provides stronger protection for workers while offering legal certainty to both workers and employers.

The provisions cover fundamental aspects of employment, including statutory workers’ rights, social security, employment status, occupational health and safety, and protections for vulnerable groups. The bill also seeks to support the creation and expansion of jobs while improving workers’ skills, productivity, and competitiveness.

On the business side, the legislation is intended to provide greater certainty in employment relations while maintaining an investment-friendly environment and supporting business sustainability.

Putih said the bill was drafted with consideration for changes in the world of work, particularly technological developments and digitalization. "Input provided was subsequently reviewed by the working committee to ensure alignment with real-world conditions, and was carefully accommodated and considered to achieve a balanced consensus among various interests," Putih said, as quoted by Antara.

The bill's approval fulfills a key requirement of Constitutional Court (MK) Ruling No. 168/PUU-XXI/2023, which called on lawmakers to separate labor provisions from Law No. 6/2023 on Job Creation.

The Constitutional Court issued the ruling on Oct. 31, 2024, and gave lawmakers a maximum of two years to establish a new labor law. The deadline therefore falls on Oct. 31, 2026.

Commission IX and the government completed the bill’s first-stage deliberations on Monday (Oct. 5), one day before the House’s plenary approval. The deliberations were conducted through discussions with the public and various stakeholders. Commission IX also held public consultations and hearings to gather input on the draft.

Putih said the submissions were reviewed by the working committee and considered in the drafting process to reflect conditions in the labor market and accommodate the interests of different stakeholders.

With the House’s approval, the bill now proceeds to the enactment stage, completing the legislative process required to establish a new legal framework for labor protection following the Constitutional Court’s ruling. ***