Monitoring Indonesia's employment law framework — Job Creation Law implementation, new employment regulations, minimum wage developments, and foreign worker requirements.
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| Regulation / Policy | Summary | Status | Last Updated |
|---|---|---|---|
| Job Creation Law — Employment Chapter | Omnibus Law employment provisions govern severance, fixed-term contracts, outsourcing, and working hours. Constitutional Court revision implemented via GR 35/2021 and GR 36/2021. | Active | Ongoing |
| Provincial Minimum Wage 2026 | Annual minimum wage adjustments effective January 2026. DKI Jakarta: IDR 5,396,761/month. Wide variation by province — check applicable province. | Active | January 2026 |
| RPTKA (Expatriate Staffing Plan) | Tech-sector RPTKA processing simplified. 30-day processing target issued. Online submission via OSS required for all new expatriate work authorizations. | Active | February 2026 |
| BPJS Ketenagakerjaan Enforcement | BPJSTK has increased audit activity for PT PMA compliance with social security enrollment. Penalties for non-compliance up to 0.1% of monthly wage bill per month. | Watch | Q2 2026 |
| Fixed-Term Contract Limit Enforcement | DSNAKER clarification on maximum fixed-term (PKWT) contract duration — 5 years cumulative including extensions. Enforcement being applied in labor court cases. | Active | April 2026 |
| Proposed: Severance Reform | Ministry of Manpower consulted on severance formula adjustment for certain termination categories. No regulation gazetted — monitor H2 2026. | Proposed | May 2026 |
This tracker monitors Indonesia's employment and labor law framework as it applies to foreign-owned companies (PT PMA) and their employees — both Indonesian nationals and expatriate workers. The primary instruments are the Job Creation Law's employment chapter (as implemented by Government Regulations 35 and 36 of 2021), provincial minimum wage decisions, BPJS Ketenagakerjaan social security requirements, and expatriate work authorization rules via the RPTKA and KITAS/KITAP system.
Indonesia has 38 provinces and over 500 districts, each with their own minimum wage applicable within their jurisdiction. The figures tracked here are provincial minimums — sector-specific minimum wages (UMK) in industrial areas and special economic zones may be higher. Always verify the applicable minimum wage for the specific location of your operations.
The compliance areas generating the most enforcement attention in 2026 are BPJS Ketenagakerjaan enrollment completeness (all employees must be enrolled within 30 days of joining), RPTKA compliance for expatriate roles, and fixed-term contract documentation. PT PMA companies that have been operating for several years without a systematic HR compliance review should treat this as a priority action item — DSNAKER audit exposure is real and penalties are indexed to payroll.
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