Regulation 11/2026 has now reformed labor inspections by replacing monthly quotas with a strategic work plan approach and by requiring digital compliance through the SIAPkerja platform. The new framework has also expanded the authority of inspectors to seal equipment, suspend operations and oversee the expulsion of foreign workers. Regulation 11/2026 also standardizes Occupational Health and Safety (Keselamatan dan Kesehatan Kerja/K3) inspections and has extended inspection periods to 60 business days.

This Decree establishes a set of standardized procedures for the imposition and termination of administrative sanctions on Indonesian Migrant Worker Placement Companies (Perusahaan Penempatan Pekerja Migran Indonesia ? ?P3MI?), which will be supported by a dedicated Sanctions Team. Sanctions may be imposed in response to complaints, monitoring or official recommendations and may include business suspensions and physical enforcement measures. The Decree also clarifies the applicable guarantee deposit disbursement procedures and requires P3MI to replenish any disbursed deposits within one month in order to avoid the revocation of their P3MI Company Permits.

This framework is set to reform Indonesia?s migrant worker employment agreement regime through the introduction of mandatory Sea Employment Agreements for migrant workers who are employed on merchant and fishing vessels. The new framework also modernizes the ways in which employment agreements are created through Sisko P2MI. As a result, the new Regulation has now broadened the applicable compliance obligations that have to be met by shipping operators and recruitment agencies by requiring collective bargaining agreements to be signed by vessel crews, as well as through the implementation of comprehensive digital agreement-making mechanisms.

This Regulation requires Indonesian Migrant Worker Placement Companies (Perusahaan Penempatan Pekerja Migran Indonesia/P3MI) to formalize worker placements through bilingual agreements with business partners, employers or principals that clearly set out the various rights and obligations of workers. Said placements may have a maximum validity of five years. The new framework also mandates that all worker deployments must be supported by verified request letters that are valid for up to 15 months in order to ensure compliance with quota limits and safety standards. In addition, a continuous monitoring system has been introduced, allowing authorities to blacklist non-compliant entities.

The Draft Regulation introduces a comprehensive regulatory framework that will now govern the relationship between the operators of online transportation platforms and their Online Transportation Workers. It also strengthens the worker?s protections through a 90:10 profit-sharing arrangement for workers and operators, while requiring social-security coverage and accessible mechanisms for the airing of any Worker grievances to be provided.

The Regulation introduces a number of new compliance obligations that strictly limit the outsourcing of work to six specific types of supporting services, while also requiring stronger worker protections to be set out in written outsourcing agreements. The Regulation also introduces a two-year adjustment period, which companies should use in order to bring their outsourcing arrangements into line with the new framework, with any non-compliance resulting in the imposition of administrative sanctions, including written reprimands and restrictions on business activities.

This new Bill clarifies employment relationships between employers and domestic workers (Pekerja Rumah Tangga ? ?PRT?) by expanding the mandatory terms of employment agreements and also requiring involvement from PRT Placement Agencies (Perusahaan Penempatan PRT ? ?P3RT?) in the drafting of said agreements. The Bill also further strengthens worker protections by enhancing PRT rights, including rest, social assistance, accommodation and safe working conditions, as well as prohibiting P3RT from charging any fees or engaging in wage deductions.

If ultimately enforced, this Draft Bill will address rapid growth in the digital economy and the rise of app-based work. The new framework will specifically govern the rights and obligations of gig workers, including the classification of nine service categories, written service agreements, social security, occupational health and safety protections, and the resolution of disputes through the Tribunal. The new framework will also ensure that any agreements that are deemed detrimental to the interests of gig workers will be declared null and void.

Indonesia?s announced 2026 Provincial Minimum Wage (Upah Minimum Provinsi ? ?UMP?) policy is set to take effect on 1 January 2026 and must be determined and announced by individual provinces by no later than 24 December 2025. These changes will result in a variety of wage increases across the nation?s various provinces and will require employers to prepare to bring their operations into line with the new wage framework by adjusting their wage policies accordingly.

The Second Amendment introduces a number of key changes to Indonesia?s minimum wage framework that will take effect during the 2026 wage year, including a revised minimum wage calculation formula that raises the labor contribution index to between 0.50 and 0.90 in order to better reflect an adequate standard of living for workers, while balancing the interests of both workers and employers. This new framework also reintroduces sectoral minimum wages at the provincial and qualifying regency/city levels, which will require governors to set said wages through the issuance of official Decrees within five days of the relevant regional minimum wages being determined, with an overall deadline of 24 December 2025 being set. In addition, sectoral minimum wages must be higher than the relevant applicable regional minimum wages and apply only to sectors that meet certain specific criteria, such as sectors that are covered by five-digit Indonesia Standard Classification of Business Fields (Klasifikasi Baku Lapangan Usaha Indonesia/KBLI) codes and that are associated with distinct sectoral characteristics or work-related risks.