The Jakarta Post
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsSeverance, minimum wage remain sticking points in labor bill talks
The Confederation of All Indonesian Trade Unions (KSBSI) called for labor rules that balance business sustainability with worker protection while adapting to changes in the workforce.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Set as preferred source
Raucous cheer: Labor union members hold banners and wave posters on May 1, 2025, during a Labor Day rally in Jakarta. (AFP/Azwar Ipank)
L
abor unions are stepping up pressure for stronger protections for outsourced and gig workers, as well as better social security, minimum wages and severance benefits, as the government and House of Representatives work to finalize a new labor protection bill. Thousands of workers rallied along Jalan Jenderal Sudirman and Jalan MH Thamrin in Central Jakarta on Thursday, pressing the government to address their demands.
The Confederation of All Indonesian Trade Unions (KSBSI) called for labor rules that balance business sustainability with worker protection while adapting to changes in the workforce.
On wages, the union called for minimum wages to remain a baseline for single workers with less than 12 months of service, rather than a flat rate applied regardless of tenure.
“In practice, many employers continue paying the basic minimum wage to workers who have been with a company for five, six, or seven years without any progression,” KSBSI president Elly Rosita Silaban said on Thursday.
She also called for stronger social protection for workers affected by layoffs, citing the Job Loss Guarantee (JKP) as an important source of income support. Aside from that, safeguards during corporate restructuring, transitions and closures, also need to be addressed, as the handling of company and labor agreements (PKBs) could leave workers without adequate compensation despite years of service.
Read also: Labor bill must protect workers, not just employment relationships
On a separate occasion, the Association of All Indonesian Trade Unions (ASPIRASI) has also called for stronger protection of workers’ rights during the resolution of troubled financial institutions, urging to prioritize unpaid wages, severance and other statutory employment benefits in cases of closure or liquidation.
