- The Minister of Manpower has issued Regulation No. 5 of 2023 on the Adjustment of the Employee Working Hours and Wages for Certain Export-Oriented, Labor-Intensive, Industrial Companies Affected by Global Economic Changes (collectively referred to as – "Companies"), which has been in force since 8 March 2023.
- Companies should meet the following criteria in order to apply this new framework: 1) Must employ a minimum of 200 employees/laborers; 2) The cost percentage of manpower as a part of total production costs should amount to at least 15%; and 3) Production should depend on orders and demand from the United States of America and the countries of Europe (which should be proven through order letters). Furthermore, said Companies should be operating within the following industrial sectors: 1) Textiles and clothing (pakaian jadi); 2) Footwear; 3) Leather and leather products; 4) Furniture; and 5) Children’s toys.
- Adjustments should be made to the relevant working hours and should result in the following working hours or fewer: 1) Seven hours in one day and 40 hours in one week for six business days in one week; or 2) Eight hours in one day and 40 hours in one week for five business days in one week. This adjustment should be set out in agreements between the relevant business actors and their employees/laborers.
- In terms of wage adjustments, these can be completed through the provision of wages to employees/laborers in amounts of at least 75% of the wages that said parties usually receive. Said adjustments should also be outlined in agreements that are drawn up between business actors and employees/laborers. These wage adjustments will remain valid from 8 March 2023 - 8 September 2023.
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