Indonesian labor regulations require employers, workers and laborers, trade and labor unions, and the government to make every effort to prevent the termination of an employment relationship.
An employer wishing to terminate an employee must give at least 14 days' written notice. This period is shortened to 7 days if the employee works under an indefinite employment contract during the probationary period. An employee who wishes to terminate the employment relationship must give 30 days notice in writing to the employer.
An employer who intends to hire foreigners must first obtain an RPTKA (Rencana Penempatan Tenaga Kerja Asing, or Expatriate Placement Plan), which must include the number of foreign employees required, the period of work and the replacement plan with Indonesian employees.
After receiving approval of the RPTKA, employers must obtain a Notification, which serves as the foreign employee's official work permit and replaces the former IMTA system. Foreign employees then obtain a VITAS (Limited Stay Visa) and, upon arrival in Indonesia, convert it into a Work KITAS, which is valid for 6 to 24 months depending on the job and can be renewed. Indonesia also allows Short-Term Work Permits of up to 6 months for activities such as audits, quality control, machine installation, or filming, as well as Emergency Work Permits valid for up to 1 month in the event of natural disasters, force majeure, or critical equipment breakdowns.
Employees who have worked for 12 consecutive months are entitled to annual paid leave of 12 days.
Some companies in Indonesia are required to give employees an extended rest period known as long rest leave. Long service leave is at least 2 months of paid leave, provided in the 7th and 8th years of employment for 1 month each year. In these cases, the employees are not entitled to their annual leave in addition to their long service leave. Long service leave is granted after every 6 consecutive years of service with the same employer. During the month-long leave granted in the 8th year, the employee is entitled to his full wage.
The regular workweek is 40 hours, and employees who work over 40 hours a week are eligible for overtime. Employers can distribute the 40 working hours in a week in the following ways:
The employee can work overtime if they agree to do so. This agreement must be made in writing. The maximum amount of overtime the employee is allowed to make is 4 hours a day and 18 hours a week. The employee is entitled to a rest of 1 day after 6-day working week and 2 days after a 5-day working week.
Under Indonesia's Maternal and Child Welfare law, female employees are entitled to at least 3 months of maternity leave following birth. Maternity leave may be extended with a doctor's certificate. An employee who suffers a miscarriage has a right to a paid period of rest of 1.5 months or the period stated in the letter issued by the treating medical professional. Employees are entitled to 100% of their normal wage during the 3-month leave, 100% of their normal wage during the first month of the extended leave, and 75% for the last 2 months.
Working mothers are entitled to receive their full wages during maternity leave. Employers are prohibited from terminating an employee because they are pregnant, giving birth, or miscarrying.
Per wage regulations, the governor of each province sets a Provincial Minimum Wage. In 2026, 38 provinces have established a Provincial Minimum Wage. Wage levels range from IDR 2,317,601 (Indonesian rupiah) in Jawa Barat to IDR 5,729,876 in Jakarta. Governors may establish a specific minimum wage order for regencies and cities in addition to the provincial minimum wage.
The minimum wage is the lowest monthly wage, consisting of the basic wage and a fixed allowance. It is calculated according to the formula stipulated in Government Regulation (GR) No. 49/2025: new minimum wage = current minimum wage + (current minimum wage x (inflation + (percentage of economic growth x contribution index)). The contribution index value will vary by province, but will always be valued between 0.5 and 0.9.
Employers must establish a wage structure and scale within their companies that account for business capacity and productivity, as well as employee category, position, seniority, education, and competence. Employers are prohibited from paying lower wages than the Provincial Minimum Wage. Small businesses that cannot afford to pay the minimum wage may submit a written application to the governor, through the Head of Service Office of Manpower and Transmigration, to suspend the implementation of the provincial minimum wage.
Get the full Country Snapshot with 25 sections of information about labor law in Bahrain.
Your request has been received. We'll be emailing you the country snapshot shortly.
Get the full Country Snapshot with 25 sections of information about labor law in Indonesia.
Your request has been received. We'll be emailing you the country snapshot shortly.
