Key facts
- Indonesia's new labor law was passed on Tuesday, October 6, 2026.
- Workers' groups have called the law a 'victory' for workers' rights.
- Businesses are concerned about rising hiring costs and regulatory uncertainty.
A new labor law passed by Indonesia's legislature on Tuesday, October 6, 2026, has been met with contrasting reactions from workers and businesses. Labor groups have lauded the legislation, deeming it a significant win for workers' rights in Southeast Asia's largest economy. Conversely, the business community is voicing anxiety, citing concerns over potential increases in hiring costs and a heightened sense of regulatory uncertainty that could further dampen the investment climate.