IndonesiaUS Agreement to Be Incorporated into the Manpower Draft Bill

The House of Representatives (Dewan Perwakilan Rakyat/DPR) is reviewing the Indonesia–United States (“US”) trade agreement concerning restrictions on outsourced workers, as well as the contract period of Fixed-Term Employment Agreements (Perjanjian Kerja Waktu Tertentu – “PKWT”). The substance of the agreement is being considered for inclusion in the Draft Bill (Rancangan Undang-Undang – “RUU”) on Manpower.

“PKWT is one of the crucial issues in the Manpower RUU, in line with the Constitutional Court’s decision. However, we must regulate it carefully,” Yahya stated to Hukumonline.

The policy to be issued is intended to ensure a balance between workers and employers, so that neither party is harmed.

There are seven crucial issues to be discussed in the Manpower RUU, including foreign workers (Tenaga Kerja Asing/TKA), outsourced workers, minimum wage, termination of employment and severance pay, PKWT, working hours/leave entitlements, and the protection of digital workers.

“Although the agreement with the US is binding on Indonesia, its regulation must remain balanced. We will seek a formulation that provides a win-win solution,” Yahya said.