Indonesia passes new labour law raising severance
Indonesias parliament passed a labour bill increasing severance benefits and rolling back prior reforms. Employers warn the changes will raise costs and deter hiring.
Indonesia's parliament approved a labour law on Tuesday evening, raising severance benefits for terminated employees and rolling back pro-business reforms. The legislative move comes as President Prabowo Subianto faces plunging approval ratings amid economic strain and surging fuel subsidies. The policy shift aims to strengthen worker protections, though business groups warn it risks driving up operational costs across Southeast Asia's biggest economy.
