Politics Indonesia's new labor law soothes workers, worries businesses

Unions call key provisions 'victory'; investors flag 'confusion,' rising risks

Ride-hailing company drivers take part in a rally in Jakarta in 2025. Indonesian labor groups have hailed a labor law passed on Oct. 6, calling it a "victory" for workers' rights in Southeast Asia's largest economy.  © Getty Images

JAKARTA -- Indonesia's new labor law, which the legislature passed on Tuesday, has won applause from workers' groups in the country but is sparking anxiety among businesses worried about rising hiring costs and regulatory uncertainty further clouding the investment outlook.