In 2021, Indonesia's employment sector was again impacted by the enforcement of the government's Covid-19 lockdown policy and the continued implementation of the work from home (“WFH”) system. Separately, and just as significantly, the Indonesian Constitutional Court ruled in November that Law No. 11 of 2020 on Job Creation (the “Omnibus Law”), which made significant changes to Indonesia's employment law regime, was conditionally unconstitutional and would have to be amended.
We summarize the key developments for Indonesia's employment sector in 2021 and look ahead to what employers can expect in 2022.
Key Employment Law Developments in 2021
Depending on the speed and degree of Covid-19 transmissions at a given moment in a given region, the Indonesian Government has enforced lockdown policies, known as the Enforcement of Restrictions on Community Activities (Pemberlakuan Pembatasan Kegiatan Masyarakat or “PPKM”), carrying various levels of restrictions. The PPKM policy has been extended several times since it was first introduced, with periodic adjustments to the level of restrictions.
For example, Jakarta was placed on Level 3 PPKM for February 15-21, 2022. The authorities tightened the restrictions from Level 2 in response to the surge in Omicron cases in the capital. Level 3 PPKM restricts the number of employees allowed to work from office (“WFO”) to a maximum of 50% of vaccinated employees in the non-essential sector. There are...
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