Labour And Employment Trends And Developments In Indonesia

A.         Overview of Indonesian Manpower Law

Indonesian employment law is principally governed by Law No. 13 of 2003 on Manpower, as amended from time to time, including by the manpower-related provisions under Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation, stipulated into law under Law No. 6 of 2023 (the “Manpower Law”). The Manpower Law is supported by implementing regulations, including government regulations and regulations issued by the Minister of Manpower.

Broadly, the Indonesian manpower framework regulates employment agreements, wages, working hours, termination, outsourcing, foreign workers, occupational safety and health, and social security. Employment disputes are generally handled under Law No. 2 of 2004 on Industrial Relations Dispute Settlement through bipartite negotiation, mediation or settlement, and court proceedings before the Industrial Relations Court.