On Tuesday 6 October 2026 the DPR passed the Labour Protection Law (Undang-Undang Pelindungan Ketenagakerjaan) in plenary, with all factions in favour. It runs to 23 chapters and 313 articles and is the new labour law the Constitutional Court called for in its 2024 decision 168/PUU-XXI/2023, which asked for labour rules to be taken out of the Job Creation Law and set in a law of their own.
The President has not yet signed it, it has no number, and the text has not been published. A Director General at the Ministry of Manpower has said it will apply one year after it is enacted, which puts it in 2027, and much of the detail is left to implementing regulations still to be written. This article sets out what has been confirmed, what has been reported, and two things an employer can sensibly do now. We will update it with article numbers once the text is out.
Where it stands
| Item | Status on 10 October 2026 |
|---|---|
| Passed by the DPR | 6 October 2026, after the committee agreed it with the government on 5 October |
| Constitutional Court deadline | Decision 168/PUU-XXI/2023, read on 31 October 2024, gave the DPR and the government two years to form the new law, so until 31 October 2026 |
| Signature and law number | Not yet. Expected by the end of October to meet the Court’s deadline, and in any case a bill becomes law 30 days after joint approval even if unsigned (Article 20(5) of the Constitution), so around 5 November 2026 at the latest |
| Published text | Not yet |
| When it applies | One year after enactment, according to the Ministry of Manpower, so during 2027 |
| Existing labour regulations | The text will say what happens to the current rules on contracts, severance, wages and foreign workers. Until then they continue to apply |
Confirmed by the Ministry of Manpower
The Minister’s statement on the day it passed lists these among the law’s new rules:
- a ban on holding a worker’s diploma or other personal documents during recruitment and placement
- a severance reserve fund (dana cadangan pesangon)
- a stronger role for the national professional certification body (BNSP)
- labour data shared between central and regional government
- wider protection for women, people with disabilities, job seekers, trainees and interns, and rules for flexible work
Reported, waiting for the text
| Topic | As reported |
|---|---|
| Social security (BPJS) | The draft made it a criminal offence, with up to four years in prison and/or a fine, not to register workers, including those on probation, to declare wages or headcount incorrectly, or to pay contributions late. Officials have since confirmed only “firm, proportionate and graduated” sanctions, so the final wording is not yet known |
| Fixed-term contracts | A maximum of four years in total: two years, then up to two extensions of one year |
| Severance | The half multiplier used for some dismissals is removed, so the minimum becomes one times the base amount. The reserve fund is reported to be separate from BPJS and meant for employers who cannot pay, with the details left to a regulation |
| Outsourcing | Limited to five support services: cleaning, catering, security, support for mining and oil, and worker transport |
| Minimum wage | Set by reference to a survey of decent living needs, with a formula once the wage is above that level. The 2027 minimum wage is still set under the current rules |
| Maternity leave | Three months, extendable in special circumstances, and paid leave after a miscarriage |
| Foreign workers | The Minister mentioned specific rules for employing foreigners married to Indonesians, and their children. The details have not been published |
Two things to do now
Put BPJS in order. The current social security law (Law 24 of 2011) already requires every employer to register all its workers, to report their real wages and to pay contributions on time. Many small companies register staff late or declare a lower wage than they pay. Correcting it now, while the new sanctions are not yet in force, is simpler than doing it later.
List your fixed-term contracts. Note when each one started and how many times it has been extended. A worker kept on fixed-term contracts for more than four years in total is the case to look at first.
Questions we are being asked
Is the new labour law in force?
No. It was passed on 6 October 2026, is expected to be enacted by early November, and according to the Ministry applies one year after enactment.
Do we have to change our employment contracts now?
Not yet. The current rules apply until the new law takes effect and its regulations are issued. Reviewing fixed-term contracts now gives you time to plan.
Does it change the rules for our foreign staff?
The only point reported so far concerns foreigners married to Indonesians and their children. Other rules on foreign workers will be clear once the text is published, and we will set them out here.
Where can we read the law?
The text has not been published yet. It will appear in the State Gazette once enacted, and we will link to it from this article.
Getting ready
If you would like your payroll, BPJS registration and employment contracts checked against what is coming, reach out to us. We look at what you have now, tell you what to correct before the law applies, and follow the implementing regulations as they come out as part of our ongoing compliance work.
Correct at the date of publication, 10 October 2026. The law’s text had not been published; the status is taken from the DPR’s release of 6 October 2026, the confirmed points from the Minister of Manpower’s statement of the same day, and the reported points from press coverage of the draft and of officials’ statements. We will update this article when the text is published. Ask us about your payroll and contracts, or know more about ongoing compliance.