Publications

Constitutional Court Decision No. 96/PUU-XXII/2024 marks a significant shift in Indonesia’s employment and social security framework by declaring the mandatory participation in the Public Housing Savings Program (Tabungan Perumahan Rakyat, “Tapera”) unconstitutional. The decision removes the legal basis for employers to register workers or deduct contributions, while allowing a two-year transition period for regulatory restructuring….

The Indonesian labour framework provides flexibility for micro and small enterprises (“MSEs”) to pay wages below the provincial minimum wage (UMP). This exemption, introduced under the Job Creation Law and elaborated in Government Regulation No. 36 of 2021 as amended by Government Regulation No. 51 of 2023 (“GR on Wages”) on Wages, seeks to balance…

As digital transformation drives the rise of remote and hybrid work, Indonesian labor law remains rooted in a rigid traditional framework. Companies remain bound by strict regulations on working hours, overtime, and employee rights, even when work is performed outside the office. This creates practical challenges in defining working hours, classifying workers, and balancing productivity…

Overview  On May 20, 2025, the Indonesian Minister of Manpower issued Circular Letter No. M/5/HK.04.00/V/2025, prohibiting employers from retaining workers’ original diplomas or personal documents, except in limited cases, i.e., when such documents are issued through employer-funded training programs with strict safeguards in place. This policy aims to protect employee rights, promote fair labor practices,…