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Businesses warn against more rigid manpower law

The Indonesian Employers Association (Apindo) pointed out issues faced by businesses, such as shifting investment toward capital-intensive industries and the declining capacity of several sectors to absorb jobs. 

Ni Made Tasyarani (The Jakarta Post)
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Thu, October 1, 2026

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Members of the Grand Coalition for Indonesian Workersʼ Struggle (KBPBI) rally on Sept. 24, 2026, during a demonstration in front of UOB Plaza on Jl. Thamrin in Central Jakarta. Members of the Grand Coalition for Indonesian Workersʼ Struggle (KBPBI) rally on Sept. 24, 2026, during a demonstration in front of UOB Plaza on Jl. Thamrin in Central Jakarta. (JP/Iqro Rinaldi)

T

he Indonesian Employers Association (Apindo) has warned that more rigid labor legislation could further raise Indonesia’s already high business costs and deter investment, as lawmakers prepare to pass the manpower protection bill next week.

Apindo chairwoman Shinta Kamdani urged fair and “balanced” regulation, emphasizing that the proposed bill should not only focus on workers’ protection, but also on improving the country’s competitiveness and expanding job opportunities. 

“This is very concerning, because if it’s not balanced and focuses solely on protection, what about the job itself?” Shinta said at the press conference. 

Apindo also pointed out issues faced by businesses, such as shifting investment trends toward capital-intensive industries and the declining capacity of several sectors to absorb jobs, which has contributed to the country's growing informal sector. 

Read also: Unions, employers divided over key employment bill provisions

Shinta stressed that the new regulation must provide both protection and certainty for businesses to sustain productivity, investment and job creation.

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“We, along with sectoral associations, are very cautious in our view that imposing additional obligations, restrictions on employment relationships and expanding sanctions, without an impact assessment or clear implementation mechanism, could undermine these objectives,” she said.   

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  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
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