Apindo Urges Government to Review New Global Labor Standards

Apindo Urges Government to Review New Global Labor Standards

Apindo Urges Government to Review New Global – On June 18, 2026, the Indonesian Employers’ Association (Apindo) called for a thorough review of the potential impact of adopting the Decent Work in the Platform Economy convention. This new international labor standard, ratified at the 114th International Labour Conference, has raised concerns among local stakeholders about how it might reshape employment frameworks. Apindo’s latest statement highlights the urgency of assessing its alignment with Indonesia’s economic priorities, emphasizing the need to balance global labor protections with domestic labor market realities.

Global Labor Standards and Their Implications

The Decent Work in the Platform Economy convention aims to redefine labor rights for gig workers, offering a framework that acknowledges the evolving nature of digital employment. While it was crafted with global consensus, Apindo argues that its implementation must be carefully evaluated. The association points out that the convention’s flexibility in classifying platform workers as independent contractors rather than formal employees could lead to disparities in rights and benefits. This classification, though beneficial for some, might leave others without the protections of traditional employment, such as social security or minimum wage guarantees.

“Apindo is urging the government to conduct an in-depth review of the new global labor standards to ensure they support Indonesia’s labor market growth,” said Darwoto, Vice Chairman of Apindo’s Labor Affairs Committee. “The convention’s provisions must be tailored to fit our unique economic context.”

Apindo’s stance is grounded in the belief that a one-size-fits-all approach may not serve the nation’s diverse workforce. The association warns that without adjustments, the convention could complicate existing employment models, particularly in sectors reliant on contract-based labor. This is especially critical as Indonesia’s open unemployment rate stood at 4.68 percent as of February 2026, according to the Central Statistics Agency, with 7.24 million people affected. A hasty adoption of global standards, Apindo stresses, risks stifling job creation and economic expansion.

Indonesia’s Digital Economy and Labor Market Dynamics

Indonesia’s rapid digital transformation has created a dynamic labor market, where platforms like Gojek and Traveloka have become pivotal in generating employment. These companies rely on a mix of formal and informal labor, and Apindo argues that the new convention could disrupt this balance. By classifying platform workers as independent entrepreneurs, the standard may reduce their access to collective bargaining, sick leave, or pension schemes. This could pose challenges for workers who depend on such benefits, particularly in an economy where over 50 million people are employed in the informal sector.

“The government must evaluate how these global standards align with Indonesia’s economic goals,” Darwoto added. “A rigid approach could limit the growth of platforms that drive job creation and innovation.”

Apindo’s recommendations include a phased implementation of the convention, allowing time for domestic labor policies to adapt. The association also suggests integrating the new standards with existing frameworks, such as the country’s labor laws and social protection programs. This approach would ensure that workers are neither overburdened by excessive regulations nor left without essential safeguards.

Government Response and Policy Considerations

While the government has not yet responded directly to Apindo’s call, officials have expressed interest in engaging with industry stakeholders. The Ministry of Manpower has acknowledged the need to study the convention’s impact on Indonesia’s labor market, particularly as the country aims to boost economic growth through digital initiatives. Apindo’s push for a review underscores the importance of a collaborative policy-making process that considers both global trends and local challenges.

Additionally, the convention’s potential influence on labor mobility is a key concern. By standardizing employment definitions, it may create barriers for workers seeking to move between sectors or platforms. Apindo emphasizes that Indonesia’s labor market requires adaptability, as it continues to evolve in response to technological advancements and shifting economic demands. The association also highlights the need for training programs to equip workers with skills that meet the standards, ensuring a smooth transition.

Opportunities and Challenges for Indonesia

Apindo acknowledges that the new global labor standards could bring opportunities, such as enhanced protections for platform workers and greater international alignment. However, the association argues that these benefits must be weighed against potential risks. Overly rigid regulations, for instance, might discourage investment in the digital sector, which has become a cornerstone of Indonesia’s economic development. The convention’s emphasis on worker rights could also increase operational costs for businesses, particularly small and medium enterprises (MSMEs) that form the backbone of the country’s economy.

President Prabowo Subianto’s vision of creating 19 million new jobs within five years aligns with Apindo’s call for a balanced approach. The association recommends policies that incentivize innovation while ensuring fair labor practices. This includes streamlining bureaucratic processes for investors and providing tax breaks for companies that adopt worker-friendly measures. By doing so, the government can foster both economic growth and social equity, a dual objective that the new standards should support.

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