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) issued a statement calling for the government to evaluate the potential consequences of adopting the Decent Work in the Platform Economy convention, a newly established international labor standard. According to Darwoto, Apindo's Vice Chairman for Labor Affairs, the organization believes that a thorough examination is necessary before implementing the framework, which was finalized during the 114th International Labour Conference (ILC). The convention, Darwoto noted, introduces a flexible model for defining the legal status of platform workers but requires national endorsement to take effect.

Flexible Framework for Platform Workers

Darwoto emphasized that the convention does not prescribe a single legal classification for platform workers. Instead, it allows member states to adapt the framework to their specific circumstances, ensuring that regulations remain proportionate to local economic conditions. He explained that while the agreement outlines principles for fair labor practices, it does not force countries to classify all platform workers as formal employees. This provision is critical, as it enables nations to recognize the diverse roles within the digital economy, such as independent contractors or self-employed individuals, while still maintaining a baseline of worker protections.

"Apindo urges the government to conduct a comprehensive study, including a regulatory impact assessment (RIA), to ensure the convention aligns with Indonesia's labor market dynamics," said Darwoto in a written statement.

According to the ILC, the convention represents a global consensus on how to address the evolving nature of work in the platform economy. However, Darwoto highlighted that the convention’s effectiveness depends on how it is implemented locally. He argued that without a detailed analysis of its effects on Indonesia’s labor market, there is a risk of misalignment between the international standard and the country’s unique needs. This could potentially hinder the growth of digital platforms, which have become a cornerstone of economic activity in recent years.

Impact on Employment and Economic Growth

Darwoto stressed that the convention’s adoption must be accompanied by a careful assessment of its economic implications. He pointed out that the digital ecosystem has created new opportunities for employment and service delivery, particularly in sectors such as e-commerce, transportation, and gig-based industries. Yet, if regulations become too stringent, these opportunities could be reduced, affecting both workers and the broader economy. For instance, the convention’s requirement for proportional rights and obligations might impose additional costs on businesses, which could deter investment and slow down innovation.

Indonesia’s current unemployment situation underscores the importance of balancing labor protections with economic growth. As of February 2026, the national open unemployment rate remains at 4.68 percent, equivalent to approximately 7.24 million people. Darwoto noted that this figure highlights the urgency of fostering job creation, especially in the platform economy, which has the potential to generate employment for millions. He warned that overly rigid labor standards could limit the scalability of digital platforms, which are vital for absorbing labor in a rapidly modernizing economy.

"The convention allows for a flexible approach, ensuring that the legal status of platform workers is determined based on local conditions and operational realities," Darwoto added. "This adaptability is key to sustaining both job availability and efficient service access for the public."

Apindo’s position reflects a broader debate about the role of international labor standards in shaping domestic policies. While the convention is designed to promote fair work practices, Darwoto argued that its implementation must consider the competitive advantages of Indonesia’s digital sector. He noted that the government’s goal of creating 19 million new job opportunities within five years, as outlined by President Prabowo Subianto, should guide the selection of legal status categories. This approach would ensure that regulations support, rather than obstruct, the expansion of the platform economy.

Striking a Balance Between Protection and Growth

Darwoto reiterated that social protection for workers is a priority, but it must be achieved in tandem with job creation. He stated that Apindo is committed to advancing welfare for all laborers, including those in the digital space, but emphasized that this cannot come at the expense of economic vitality. "Ideal labor protection requires a robust job market," he said, "and any regulatory framework must prioritize opportunities that empower workers and businesses alike."

The association’s call for a regulatory impact assessment (RIA) comes as a response to concerns about how international standards might reshape Indonesia’s labor landscape. By evaluating the potential effects on employment, wages, and business operations, the RIA could help identify measures that strike the right balance between protecting workers and encouraging innovation. Darwoto suggested that policies should focus on fostering economic growth through streamlined investment processes, reducing bureaucratic hurdles, and creating an environment where digital platforms can thrive.

Additionally, Apindo highlighted the importance of tailoring labor classifications to Indonesia’s context. While the convention grants flexibility, it also requires that workers’ rights and responsibilities be clearly defined. Darwoto argued that this could be achieved by classifying platform workers as independent entrepreneurs rather than formal employees, which would allow them to retain autonomy while still benefiting from certain protections. Such a model, he said, would better align with the realities of the gig economy and support long-term sustainability.

Apindo’s statement also underscored the need for collaboration between the government and private sector to ensure the convention’s success. By working together, stakeholders could develop regulations that address the challenges of platform work without stifling its potential. Darwoto envisioned a future where Indonesia leverages its digital infrastructure to create jobs and drive economic development, provided that labor standards remain adaptable and economically viable.

As the government considers ratifying the convention, Apindo has urged policymakers to prioritize a gradual and evidence-based approach. The association’s emphasis on local context and economic growth aligns with its broader mission of supporting Indonesia’s labor market. By ensuring that the convention is implemented in a way that complements, rather than conflicts with, the country’s development goals, Apindo believes the digital economy can continue to flourish and contribute to national progress.

The discussion has sparked renewed interest in how Indonesia can position itself within the global labor standards framework. While the convention offers a promising model for fair work in the platform economy, its success will depend on the government’s ability to integrate it with existing policies and adapt it to local conditions. Apindo’s advocacy highlights the delicate balance required to ensure that labor protections do not inadvertently slow the growth of emerging industries, which are critical for Indonesia’s economic future.

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