President Prabowo Announces Sweeping Worker Welfare Reforms on International Workers’ Day in Indonesia
Jakarta, The Gulf Observer: Prabowo Subianto on Friday unveiled a series of policy measures aimed at improving the welfare of Indonesian workers, marking the 2026 International Workers’ Day celebrations at the National Monument (Monas).
Addressing a large gathering, the president announced that he has signed Presidential Regulation No. 25 of 2026 to ratify International Labour Organization Convention 188, a key international framework designed to enhance the protection and welfare of workers in the fisheries sector.
Prabowo emphasized that the move would directly benefit approximately six million fishermen across the country, extending its positive impact to nearly 20 million Indonesians, including their families. The convention mandates improved working conditions, including decent onboard accommodation, formal employment contracts, and access to social protection.
In a further step to strengthen labor protections, the president also signed Presidential Regulation No. 27 of 2026, targeting the rapidly growing online ride-hailing sector. The regulation ensures that drivers receive health insurance coverage and retain at least 92 percent of their earnings.
Highlighting housing affordability as a key concern, Prabowo reaffirmed the government’s commitment to accelerate the construction of one million affordable housing units this year. The initiative aims to enable workers to transition from paying rent to owning homes within their existing income levels.
“You currently spend around 30 percent of your income on rent. We will ensure that the same amount can be used to pay installments for your own home,” he stated.
The president also disclosed that directives have been issued to the ministries of manpower and law to coordinate with parliament for the swift passage of the Manpower Bill. The proposed legislation is expected to strengthen labor protections and address longstanding demands from trade unions.
Prabowo reiterated that the government is committed to ensuring the bill is finalized within the year, underscoring its importance in safeguarding workers’ rights and improving labor standards nationwide.
