(Sept 24): More than 1,000 workers rallied peacefully in Jakarta on Thursday, pressing lawmakers to include stronger protections in a new labour law ahead of a court-imposed deadline next month.

The turnout was far below the 50,000 workers organisers had said would take part. Many of the demonstrators, dressed in blue union shirts, marched north along one side of Jalan Sudirman, a major artery through Jakarta’s business district, disrupting traffic and prompting police to divert vehicles onto nearby streets.

The crowd dispersed shortly before 2pm.

The rally comes as lawmakers race to complete a stand-alone labour law by an Oct 31 deadline imposed by the Constitutional Court, with labour groups and employers still divided over issues such as outsourcing, fixed-term contracts and severance rules. The debate carries broad stakes in a country where millions of workers are informally employed, even as the economy continues to grow at more than 5%. 

The relatively small, peaceful gathering stood in contrast to demonstrations just over a year ago, when protests over inequality and rising living costs turned into the country’s deadliest unrest in more than a decade. 

Demonstrators were drawn from a coalition of labour groups, including the influential KSPSI labour confederation led by Andi Gani Nena Wea. The coalition has said it plans further protests outside Parliament in the coming weeks as deliberations on the new law enter their final stretch. 

The legislation could reshape employment rules across Southeast Asia’s biggest economy. Some 148 million people were employed in May, out of a labour force of more than 155 million, according to the national statistics agency.

Labour groups are seeking tighter restrictions on outsourcing and fixed-term contracts, changes to wage-setting rules and stronger safeguards against lay-offs. The coalition organising the rally has proposed limiting fixed-term contracts to one year and restricting outsourcing to a limited number of support functions, while seeking greater protections for workers on digital platforms.

Union representatives also submitted an 11-point petition to the office of President Prabowo Subianto. 

Presidential Chief of Staff Dudung Abdurachman said on Thursday the bill was awaiting passage, though Deputy House Speaker Sufmi Dasco Ahmad said separately that differences between labour groups and employers still needed to be resolved, state news agency Antara reported. Parliament plans to mediate between the two sides and aims to complete the bill in October.

The Constitutional Court ordered lawmakers in October 2024 to separate employment provisions from the sweeping job creation law and place them in a stand-alone labour law within two years. The court reiterated that requirement in June and said the 2003 labour law and related rulings would apply if lawmakers fail to complete the separation by Oct 31.

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