Government Allows Certain Labor-Intensive Industrial Companies to Adjust Their Working Hours and Wages

The slowing global economy has resulted in a weakening global demand for products produced by certain export-oriented, labor-intensive industries (industri padat karya berorientasi ekspor – “IPKBE”), which are ultimately affecting the continuity and sustainability of their work and business activities. In order to ensure the continuity and sustainability of certain IPKBE, the Minister of Manpower recently issued Regulation No. 5 of 2023 on the Adjustment of Wages and Working Hours for IPKBE Affected by Global Economic Changes (“Regulation 5/2023”), which has been in force since 8 March 2023.[1]