Wages and social security: Key demands of Indonesian affiliates

The Indonesian National Unity and Labour Law Reform was held on 9-10 February in Jakarta. The leadership came from 10 IndustriALL affiliates in Indonesia. The aim of the meeting is to strengthen unity among affiliates and coordination in preparing the Indonesian labour law reform. Iwan Kusmawan, chair of the Indonesia Council, stated that IndustriALL affiliates are now prepared for the new labour law discussion, as urged by the 2024 Constitutional Court’s ruling on the Job Creation of Omnibus Law.

The ruling said that employment provisions should be removed from the Job Creation law and asked for a new labour law, giving lawmakers up to two years to prepare it, with a deadline of 31 October 2026 to enact a new labour law in line with Constitutional Court requirements. Since November 2024, the Indonesian Parliament has included discussion of a new labour law on its list of national legislative priorities, signalling political recognition of the need to revise the current framework following the Omnibus Law and related Constitutional Court rulings.

As a follow-up to the 2025 affiliates meeting on Labour Law Reform, Indonesian affiliates call for the development and adoption of a new labour law that fully complies with international labour standards. The proposed law should provide comprehensive protection for workers, including improvements in wage policies, expansion and strengthening of social security coverage, enhanced occupational safety and health (OSH) protections and stronger safeguards for fundamental workers’ rights, including freedom of association and collective bargaining.

Indonesian affiliates demand the realization of decent wages, rather than merely minimum wages. This includes establishing a more robust and transparent wage-setting mechanism by strengthening the role and functions of Wage Councils at national, provincial,and sectoral levels. Affiliates also call for the full implementation of wage scales and structures at the company level to ensure fair wage progression, transparency and equal pay for work of equal value.

On social security, Indonesian affiliates call for expanded, more inclusive employment-based social security coverage. This includes stronger enforcement measures to ensure that employers register all workers in the national social security system. Affiliates also demand the development of social security protection schemes for workers affected by the energy transition and climate change, recognizing the growing risks of job displacement and livelihood loss. In addition, there is a call to strengthen maternity protection through improved maternity benefit schemes, including longer maternity leave. Indonesian affiliates further urge the government to ratify ILO Convention No. 102 on Social Security (Minimum Standards) as a key step toward strengthening the national social protection framework in line with international labour standards.

Kemal Özkan, assistant general secretary of IndustriALL Global Union said that it’s time for Indonesian affiliates to take concrete action on the proposed labour law reform. Wages and social security are the key demands in the fight for equality and workers’ rights.

Ramon Certeza, the regional secretary of IndustriALL SEAO, said that IndustriALL affiliates in Indonesia should strengthen their unity and unite around a common demand for the new labour law proposal.

Iwan Kusmawan, chair of the Indonesia Council, was very optimistic about the establishment of the task force and hoped that the IndustriALL affiliates would develop a collective demand for the proposed new labour law. Iwan said:

“We will work with the task force on wages and social security by March and work together with experts and other stakeholders on our proposed new labour law.”