Indonesia Introduces New Rules for Internships and Workplace Training
,Indonesia’s Law No. 27 of 2026 concerning Labor Protection (“Law 27/2026”) introduces new requirements for internships and workplace training. Enacted on 28 October 2026, the law replaces Law No. 13 of 2003 on Manpower and certain manpower provisions of the Job Creation Law. It was introduced following a Constitutional Court decision calling for manpower rules to be consolidated into a standalone law.
For employers, the changes make internship arrangements more formal and place clearer limits on how training programs may operate. Internships may last no longer than six months, and each intern must have a written agreement setting out the parties’ rights and obligations. The agreement is essential: an internship without one is invalid, and the participant is treated as an employee of the company. The company may then be responsible for providing employee entitlements, including wages and social security.
New rights and limits for interns
Law 27/2026 expressly sets out interns’ rights. Companies must provide guidance and occupational safety protections, pay an allowance, register interns with BPJS Employment for work accident and death coverage, assess their performance, and issue a certificate. Internships are limited to eight hours per day and 40 hours per week.
These requirements call for companies to review both their internship agreements and their day-to-day program practices. A written agreement alone may not be enough if the arrangement does not also provide the required supervision, allowance, insurance coverage, assessment, and certification.
Workplace training must focus on learning
The law also sets limits for workplace training programs, including trainee programs. Training may take place for no more than six hours per day and five days per week, and only between 6:00 a.m. and 6:00 p.m. At least 60% of the program must consist of practical training, participants must be guided by an instructor, and the program must not impose production targets.
Companies operating their own training institutions must register them with the Regional Government. Private training institutions must hold a business license. Companies are also responsible for developing their employees’ skills; companies meeting criteria to be established by Ministerial Regulation will be required to provide such development.
Potential consequences of non-compliance
Private training institutions that breach workplace training requirements may receive a written warning, have their business activities temporarily suspended, or have their business license revoked. For company-owned training institutions, the available sanctions include a written warning, temporary suspension of training activities, and revocation of the institution’s registration.
The Regional Government may temporarily suspend a non-compliant training program for up to six months. If the problem is not remedied, the program may be stopped permanently. Continuing to operate it may lead to revocation of the relevant license. Overseas internship programs may also be halted if they fail to safeguard participants’ dignity, skills development, and protection.
Existing rules and transition
Law 27/2026, including its internship and training provisions, has been in force since 28 October 2026. Existing implementing rules, including Minister of Manpower Regulation No. 6 of 2020, remain applicable to the extent that they do not conflict with the new law. The Government must issue new implementing regulations by 28 October 2027.
Because the new six-month maximum is shorter than the one-year limit under the previous rules, companies should apply the six-month limit to new internship agreements. Companies with internships already in progress should review the arrangements against the new law and seek advice on how the transition affects them.
Steps for employers
Employers should identify their ongoing internship and training programs, update internship agreement templates, and confirm that interns receive the required allowance and BPJS Employment coverage. They should also review trainee schedules, ensure programs meet the daytime and weekly-hour limits, remove production targets, provide instructor guidance, and ensure at least 60% of training is practical. Companies should monitor the implementing regulations expected by October 2027.