Draft on the Employment Protection Bill

Throughout September, EuroCham attended two in-person meetings organized by APINDO, in collaboration with the other chambers and associations, as part of a joint effort to bring employer and investor perspectives into the government's revision of the Employment Protection Bill (RUU Pelindungan Ketenagakerjaan). The bill, which is targeted for enactment on 8 October 2026, will shape employer-employee relations, employee benefits and business practices for Indonesian and foreign companies alike.

The meetings highlighted that the revision of the bill tends to favour the workers' perspective more than the employer's. EuroCham's position is that a well-balanced law that protects workers while keeping Indonesia predictable and competitive for investment serves both employees and employers and supports the pace of job creation. The meetings underlined concerns that the current direction may not yet reflect enough employer input, and that this could affect Indonesia's investment climate.

APINDO is running an active public-opinion and media campaign, arguing that the case for a balanced law needs to be made publicly, not just negotiated privately, because it affects not only employers but the pace of job creation itself. APINDO explicitly asked every association and chamber, including EuroCham, to help build and amplify this narrative in the coming week, including offering to coordinate our members' access to media channels to increase the outreach of our advocacy to the general public.

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