The study finds that 15% of companies fail to provide written contracts, depriving workers of legal recognition and protection. Over half (57%) of employees are hired on short-term contracts lasting less than 12 months, while 14% are forced to work more than 54 hours per week, in some cases up to 58 hours. These unstable employment conditions prevent workers from accessing fundamental rights such as health insurance and pension benefits. Although social security compliance improved until 2022, it has since declined sharply particularly in pension coverage, which dropped by 15%. Without serious law enforcement, only 58.8% of companies are projected to pay old-age security benefits by 2030. We concludes that post–Omnibus Law (UU Ciptaker) deregulation has intensified job precarity, stagnated real wages, and weakened workers’ bargaining positions, widening inequality across the labor market.
The report also highlights the gender dimension of labor vulnerability. Female workers are 4% more likely than men to earn below the minimum wage, 19% more likely to be denied severance pay, and 8% continue to perform hazardous work during pregnancy. Furthermore, 45% of contract workers report being banned from striking, while 12% are prohibited from joining labor unions. We warn that if participatory labor reform is not undertaken through transparent dialogue involving trade unions, academics, business actors, and civil society, Indonesia risks deepening inequality and eroding fundamental labor rights in the TGSL industry.
Bibliography:
Askar, M. W., Fikri, B., & Setiadi, B. M. (2025). Low Wages, High Hopes: A Feasibility Study of the TGSL Industry (Upah Rendah, Harapan Tinggi: Studi Kelayakan Kerja Industri TGSL). Center of Economic and Law Studies (CELIOS).