Compiled from Indonesian House of Representatives, ANTARA News, Reuters. Sources checked . Claims are attributed; limits of the evidence and analysis are identified in the report.
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Parliament approves a new worker-protection framework
Indonesia’s House of Representatives passed the Labour Protection Bill on October 6, approving it for enactment into law. The official parliamentary agenda listed the measure for a final decision at the chamber’s ninth plenary meeting, and ANTARA reported that lawmakers approved it during the session.
The legislation covers employment planning, training, placement, wages, industrial relations, dismissals, supervision and criminal provisions. It also reaches informal workers and people working through digital platforms, widening the framework beyond conventional employer–employee relationships.
Severance and dismissal rules move toward stronger protection
Manpower Minister Yassierli said revised severance allowances would benefit dismissed workers and that employers would no longer be able to rely as easily on cost-efficiency grounds for layoffs, Reuters reported. The law also calls for a severance-security program intended to ensure that employers have funds available when termination payments are due.
For platform workers, draft provisions reviewed before passage included access to social security, fair-pay protections, transparency about management algorithms and safeguards against unjustified account deactivation. The precise legal effect of those provisions should be assessed against the final promulgated text.
The enacted text and business impact remain to be tested
The complete enacted law had not been made public when the vote was reported. That limits how precisely its obligations, implementation dates and enforcement mechanisms can be described. INCE NEWS is therefore reporting the confirmed passage and the provisions identified by officials and reputable reporting, without treating draft language as final where it has not been verified.
Employer groups warned during the legislative process that higher labour costs could discourage formal hiring and weaken competitiveness. Supporters argue the law restores protections reduced under the 2020 Job Creation Law. The actual effects on hiring, dismissal practices and Indonesia’s large informal workforce will depend on implementing regulations, enforcement and employer compliance.
Sources
Indonesian House of Representatives — Ninth plenary meeting of the 2026–2027 session
Primary parliamentary agenda · 2026-10-06
ANTARA News — House approves Bill on Labor Protection for enactment into law
Indonesian state news agency reporting · 2026-10-06
Reuters — Indonesian parliament agrees higher severance benefits in new labour law
Independent reporting · 2026-10-06