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View all search resultsEmployers, workers struggle to find common ground as employment bill nears passage
Despite the deadlock, lawmakers are still targeting Oct. 8, or sooner, to pass the bill before entering a recess that will last until next month.
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Raucous cheer: Labor union members hold banners and wave posters on May 1, 2025, during a Labor Day rally in Jakarta. (AFP/Azwar Ipank)
I
ndonesian employers and labor groups remain divided over key provisions of the Manpower Protection Bill, with lawmakers expected to pass the legislation this week.
Both sides are pressing the House of Representatives to resolve sticking points, including minimum wage calculations, rules governing outsourcing and fixed-term employment contracts (PKWT), as well as severance pay.
The Confederation of Indonesian Trade Unions (KSPI) president Said Iqbal, who also serves as President Prabowo Subianto's special advisor on labor affairs, told The Jakarta Post on Friday that the House had facilitated a mediation between the labor group and the Indonesian Employers Association (Apindo), but they “have yet to find common ground”.
The labor group has issued a draft highlighting 10 key issues, such as strict limitations on outsourcing and prohibits fixed-term contracts for full-time positions. It marked a major divergence from Apindo’s emphasis on operational flexibility.
Another wave of nationwide demonstrations was staged on Thursday, led by the Federation of Indonesian Metal Workers' Union (FSPMI), demanding a minimum wage increase and urging the government to promptly pass the Manpower Protection Bill.
The federation asked for a wage increase of between 7.5 percent and 9.5 percent for both the provincial minimum wage (UMP) and city minimum wage (UMK) this year, as well as tax exemptions for Old-Age Savings (JHT). They also refused severance payments at half of the amount required in the previous rule and called for a regulatory overhaul on outsourcing.
Said explained that the minimum wage increase range of up to 9.5 percent was intended to account for differences in economic growth across regions in the archipelago and help sustain spending power and workers’ welfare.
