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Timely analysis of legislative amendments, Constitutional & Supreme Court rulings, BKPM policies, and sectoral decrees affecting commerce and compliance in Indonesia.

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Labor & Employment

Constitutional Court Ruling on Job Creation Law Labor Cluster: Mandatory Contract and Outsourcing Overhaul

The Constitutional Court issued landmark Decision No. 168/PUU-XXI/2023, partially striking down key labor provisions in Law No. 6 of 2023 (Job Creation Law) and ordering the enactment of a standalone Labor Law within two years. The ruling immediately affects fixed-term employment contracts (PKWT), limits permissible outsourcing scopes, and modifies severance and wage determination rules.

Constitutional Court of the Republic of Indonesia (Mahkamah Konstitusi RI) Full Analysis