PKWT and Outsourcing to Be Included in the Revision of the Manpower Law

Coordinating Minister for Economic Affairs, Airlangga Hartarto, stated that the government will re-regulate policies related to Fixed-Term Employment Agreements (PKWT) and outsourcing in the new Manpower Law.

This policy adjustment is part of Indonesia’s effort to align its labor regulations with international trade agreements, including responding to input from the United States, as well as following up on the Constitutional Court’s ruling regarding the employment cluster in the Job Creation Law.

The move aims to provide greater legal certainty and clarify the limitations on the use of contract and outsourced workers, including plans to restrict the duration of PKWT so that workers are not left in prolonged uncertainty regarding their employment status.

The government emphasized that the revision of these regulations is intended to maintain a balance between worker protection and a favorable investment climate.