Indonesia Passes New Labor Protection Law Amid Union Protests
On Tuesday, October 6, 2026, the Indonesian House of Representatives (DPR) approved the controversial Labor Protection Bill into law during a plenary session at the parliamentary complex in Senayan, Jakarta, amid fierce labor protests and heavy police deployments, bbc.com reported.
Plenary Approval at the DPR
The newly ratified legislation contains 23 chapters and 313 articles, bbc.com reported. Ahead of the vote, Putih Sari, Chair of the Bill's Panja and Deputy Chair of Commission IX of the DPR, claimed the legislation provides strong protections for normative rights, social security, and workplace safety.
Outside the parliamentary complex, however, the reception proved starkly different. Thousands of workers belonging to the Great Coalition of the Indonesian Labor Struggle gathered under the harsh sun, with participant Stefan, 32, traveling from Cirebon by bus to demand genuine protection against arbitrary layoffs, kompas.id reported.
Police Deploy Thousands to Secure Legislative Perimeter
To secure the legislative perimeter on October 6, 2026, the Jakarta Metro Police deployed 11,261 personnel alongside 2,055 traffic officers, Tribrata News reported. Bureau of Operations Head Senior Commissioner La Ode Aries El Fathar stated that authorities utilized a humanistic and dialogic approach while barring officers from carrying firearms or sharp weapons. Following the demonstrations, Chief of Presidential Staff General Listyo Sigit Prabowo received labor delegates, including Confederation of All-Indonesian Workers Union President Andi Gani Nena Wea, at the Bina Graha building within the State Secretariat complex, detikNews reported.
Andi Gani praised the legislative outcome outside the parliament building, calling it a historic victory for Indonesian workers delivered by President Prabowo Subianto, detikNews reported. Conversely, Konfederasi Persatuan Buruh Indonesia denounced the entire process, bbc.com reported. National Council Chair Jumisih stated that her union never received a draft of the bill and was locked out of negotiations, contrasting the secretive proceedings with the more inclusive drafting witnessed during domestic worker protection bills.
New Framework Eliminates 0.5 Multiplier for Severance Pay
Manpower Minister Yassierli detailed significant modifications to termination payouts under the new statutory framework, CNBC Indonesia reported. Specifically, the disputed 0.5 multiplier for severance compensation during layoffs—previously permitted under Government Regulation Number 35 of 2021 for reasons such as company efficiency, bankruptcy, or disciplinary infractions following three written warnings—has been entirely eliminated. Severance must now use a minimum multiplier of one, dependent on tenure.
The legislation establishes a legal mandate for severance reserve funds to prevent corporate defaults during termination procedures, CNBC Indonesia reported. Ministry Director General Indah Anggoro Putri confirmed that these sweeping provisions carry a one-year transition period before taking full legal effect from the date of enactment, CNBC Indonesia reported.
Meanwhile, trade unions continue to press for clarity regarding weekly working hour caps and enforcement mechanisms as the government prepares implementing regulations.