Employment Law in Indonesia and the New Manpower Law
Employment law in Indonesia sits in one main statute, the laws and regulations around it, and a 2024 court ruling. Find each rule’s guide and the new law’s status.
References (16)
- UU No. 13 Tahun 2003 on Manpower, in force 25 March 2003, as amended by UU No. 6 Tahun 2023 (Article 81). Articles 5 and 6 cover equal opportunity. Articles 42 to 49 cover foreign workers. Articles 56 to 61A cover employment contracts. Articles 77 to 79 cover working time and rest. Articles 88 to 98 cover wages. Articles 108 to 135 cover company regulations and collective agreements and were not amended. Articles 151 to 157A cover termination.
- UU No. 6 Tahun 2023 on Job Creation, promulgated 31 March 2023. Article 80 names the four statutes its manpower chapter changes. Article 81 amends the Manpower Law in 71 points. Articles 82 and 83 amend the social security laws and add the job-loss benefit. Article 184 keeps the regulations made under UU 11/2020 in force where they do not conflict. Article 185 revokes UU 11/2020.
- Constitutional Court decision No. 168/PUU-XXI/2023, pronounced 31 October 2024. Points 2 to 22 of the ruling set how 21 provisions of UU 6/2023 Article 81 must be read. Paragraph 3.16 of the reasoning said two years at most was enough to pass a new manpower law.
- PP No. 34 Tahun 2021 on the use of foreign workers, promulgated 2 February 2021.
- PP No. 35 Tahun 2021, in force 2 February 2021. Chapter II covers fixed-term contracts. Chapter III covers outsourcing. Chapter IV covers working time and rest. Chapter V covers termination.
- PP No. 36 Tahun 2021 on Wages, promulgated 2 February 2021.
- PP No. 51 Tahun 2023, in force 10 November 2023. It amends PP 36/2021 on the minimum wage.
- PP No. 49 Tahun 2025, in force 17 December 2025. It amends PP 36/2021 a second time, with Constitutional Court decision 168/PUU-XXI/2023 in mind.
- PP No. 37 Tahun 2021 on the job-loss benefit, in force 2 February 2021.
- PP No. 6 Tahun 2025, in force 7 February 2025. It amends PP 37/2021.
- UU No. 2 Tahun 2004 on industrial relations disputes. Article 2 lists the four kinds of dispute.
- UU No. 40 Tahun 2004 on the National Social Security System, as amended by UU No. 6 Tahun 2023 (Article 82).
- UU No. 24 Tahun 2011 on BPJS, as amended by UU No. 6 Tahun 2023 (Article 83). Article 6 sets the programmes each BPJS runs.
- UU No. 8 Tahun 2016 on Persons with Disabilities.
- Permenaker No. 6 Tahun 2016 on the religious holiday allowance.
- Permenaker No. 28 Tahun 2014 on company regulations and collective agreements.
Employment law in Indonesia, often called labour law, is not one code. It is one statute, the Manpower Law (UU, Undang-Undang) 13/2003, rewritten in part by Article 81 of the Job Creation Law, UU 6/2023. Around it sit the Government Regulations (PP, Peraturan Pemerintah) made under it, neighbouring statutes on social security and disputes, and regulations of the Minister of Manpower (Permenaker). A 2024 Constitutional Court decision then changed how parts of the statute must be read.
This page is a map. It says where each rule sits and points to the MAM guide that explains it, so the figures and deadlines live in one place each. It states the law in force on 14 October 2026. According to press reports, parliament has passed a new manpower law. We found no sign that it is in force, and a section below says where it stands.
How the law got to where it is
Five moments explain why the rules sit in so many laws and regulations.
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The Manpower Law
UU 13/2003 sets the framework, and still stands as amended.
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The 2021 regulations
PP 34, 35, 36 and 37 of 2021 are issued under the first Job Creation Law, UU 11/2020.
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UU 6/2023
It amends the Manpower Law and revokes UU 11/2020.
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The Constitutional Court
Decision 168/PUU-XXI/2023 changes how parts of the amended law must be read.
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Two amendments
PP 6/2025 amends the job-loss benefit rules, and PP 49/2025 the wage rules.
The 2021 regulations still apply because UU 6/2023 says so: regulations made under UU 11/2020 remain in force where they do not conflict with it (UU 6/2023, Article 184).
Where each rule sits
References to UU 13/2003 below are to the text as amended by UU 6/2023.
Hiring, end to end
How to hire: the three routes, then each employer duty in turn.
Employment contracts
UU 13/2003, Articles 56 to 61A. PP 35/2021, Chapter II, on fixed-term contracts.
Working hours and overtime
UU 13/2003, Articles 77 to 79. PP 35/2021, Chapter IV, on working time and rest.
Leave
UU 13/2003, Articles 79 to 82, 84 and 93. PP 36/2021, Articles 40 to 47. UU 4/2024 on maternity leave.
Minimum wage
UU 13/2003, Articles 88C to 88E. PP 36/2021 on wages, as amended by PP 51/2023 and PP 49/2025.
Allowances
UU 13/2003, Article 94, and its explanatory notes. PP 36/2021, Article 7.
Religious holiday allowance (THR)
Permenaker 6/2016, the Minister of Manpower’s regulation on the religious holiday allowance.
Company regulations
UU 13/2003, Articles 108 to 135, which UU 6/2023 left untouched. Permenaker 28/2014.
Ending employment and disputes
UU 13/2003, Articles 151 to 157A. PP 35/2021, Chapter V. UU 2/2004 on industrial relations disputes.
BPJS social security and the job-loss benefit
UU 40/2004 and UU 24/2011, as amended by UU 6/2023, Articles 82 and 83. PP 37/2021, as amended by PP 6/2025.
Foreign employees
UU 13/2003, Articles 42, 45 and 47. PP 34/2021 on the use of foreign workers.
Equal opportunity
UU 13/2003, Articles 5 and 6. UU 8/2016 on persons with disabilities.
Employer of record
MAM is the legal employer and covers payroll, income tax and BPJS as agreed with you, while you direct the work.
One 2024 ruling changes how some articles are read
Constitutional Court decision 168/PUU-XXI/2023, pronounced on 31 October 2024, declared 21 provisions of UU 6/2023 Article 81 unconstitutional. It did so unless they are read as the Court set out, and those readings have applied since that day. Examples include:
- how long a fixed-term contract may run;
- severance as a minimum;
- dismissal where talks between the two sides fail;
- weekly rest on a five-day week.
The wage regulation has since been amended with the decision in mind (PP 49/2025).
The new manpower law, as at 14 October 2026
In its reasoning, the Constitutional Court said two years at most was enough to pass a new manpower law, separate from UU 6/2023 and made with the active participation of trade unions. The House of Representatives (DPR, Dewan Perwakilan Rakyat) passed the bill in plenary on 6 October 2026, CNA Indonesia and Okezone reported. On 14 October 2026 it did not appear among the 2026 laws listed by the Audit Board’s legal database (BPK), peraturan.go.id or the State Secretariat’s legal database, so we treat it as not yet in force.
The press has reported these provisions. We treat them as reports until we can read the law itself:
- Fixed-term contracts: a stated maximum term, CNA Indonesia reported.
- Outsourcing: limited to a short list of supporting services, CNA Indonesia reported.
- Severance: amounts set by length of service, CNA Indonesia reported.
- Platform and informal workers: new protection, including against an account being deactivated without notice, iNews and IDX Channel reported.
Until the new law is in force, the laws and regulations on this page apply. When it takes effect we will revise this page and each guide linked from it.
Who takes care of these duties
Our HR consulting service drafts employment agreements to Indonesian law, and drafts company regulations and files them for the manpower office’s approval. With your own company, our payroll service can run the monthly gross-to-net calculation, BPJS social security (Badan Penyelenggara Jaminan Sosial), PPh 21 employee income tax, payslips, THR and the annual manpower report (WLKP). With no company here, our employer of record service makes MAM the legal employer, covering those duties as agreed with you.