When Will Indonesia's New Labor Bill Be Finalized? DPR Gives Update

August 13, 2026 | 04:33 pm

TEMPO.CO, Jakarta – Indonesia’s House of Representatives (DPR) is accelerating work on a new labor law after the Constitutional Court ordered labor provisions to be separated from the Job Creation Law.

The DPR is currently collecting input from labor unions and other stakeholders as it prepares the academic paper and draft bill. The legislation is expected to be completed within the timeline set by the Constitutional Court.

DPR Deputy Speaker Sufmi Dasco Ahmad said Thursday, August 13, that the academic paper and draft of the new labor law are targeted for completion in early October 2026.

“The proposed draft has been forwarded to Commission IX of the DPR. The academic paper and proposed draft bill are targeted for completion in early October 2026,” Dasco said during a meeting with labor organizations at the parliament complex in Jakarta.

The meeting was attended by fellow DPR Deputy Speakers Saan Mustopa and Cucun Syamsurijal, Legislative Body Chairman Bob Hasan and Commission IX Deputy Chair Putih Sari.

Representatives from several labor organizations also attended, including the Alliance of Indonesian Workers’ Unions (Aspirasi), the Global Indonesia Workers’ Federation (FSPGI), the Transport, Pharmaceutical and Other Industries Workers’ Union (SPITFS), the International Labour Conference (ILC), and the Labor Party Workers’ Union Coalition.

Representatives of state-owned enterprise workers, the Confederation of All Indonesian Workers’ Unions (KSPSI), the Confederation of Indonesian Workers (KRPI), the National Labor Movement Center (SGBN), and the Indonesian Employers Association (Apindo) were also present.

Why Does Indonesia Need a New Labor Law?

Dasco said the DPR and government must formulate a new labor law following a Constitutional Court ruling issued on October 31, 2024.

The court ordered labor provisions to be removed from the Job Creation Law and regulated under a separate law. It gave lawmakers two years from the ruling to complete the new legislation.

“The Constitutional Court gave a two-year deadline from the reading of the ruling, so the new law is expected to be completed before October 31, 2026,” Dasco said.

The deadline means lawmakers and the government have only a limited window to complete the legislation, including discussions with workers, employers, academics and other stakeholders.

What Will the New Law Cover?

The DPR’s Expert Body prepared the academic paper and draft bill, which were submitted to Commission IX during a public hearing on June 22, 2026.

The draft contains 19 chapters and 224 articles covering a wide range of labor issues, including layoffs, wages, fixed-term employment contracts, outsourcing, training and apprenticeships, employment placement, workers outside formal employment relationships, and foreign workers.

Commission IX also formed a working committee and began discussing the draft during the parliamentary recess from July 27 to August 4.

With the DPR’s new session set to open on Friday, August 14, Commission IX will resume consultations with academics, non-governmental organizations and national figures.

The additional input will be used to refine both the draft bill and its academic paper before lawmakers proceed with the legislative process.

“We want the law to be richer and more comprehensive, and, of course, to better address the needs of workers and laborers,” Dasco said.

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