Indonesia rewrites its labour law, and workers are watching

Indonesia is about to rewrite the law that governs work, and how it turns out could shape the lives of millions of workers. Writing for Indonesia at Melbourne, Nabiyla Risfa Izzati explains that the country's top court ordered the government to revise the 2003 labour law within two years, and the rewrite is expected to pass in 2026. The stakes are high, and the direction is not yet clear.

One big problem is who the law even counts as a "worker." The current definition is narrow and leaves out gig and platform workers, such as ride-hailing drivers, and freelancers. That means millions of people fall into what the author calls a "legal no-man's land," with no clear right to social security or help settling disputes with the companies they work for. Pay is another worry: by 2026 figures, only five of Indonesia's provinces meet the official "decent living" level for the minimum wage.

Who writes the new law matters too. The Indonesian Labour Party won no seats in the 2024 parliament, and most lawmakers come from business backgrounds. The author fears that without strong worker voices in the room, the rewrite could tilt toward employers, leaving ordinary workers with weaker protections than before.

Why it matters

If you drive for an app, freelance, or work an informal job, this law could decide whether you finally get basic protections like social security, or stay outside the system. It also sets the rules on pay and job security for years to come. Watch who shapes the final text, and whether gig and platform workers are written in or left out.