The Rights of Workers in Indonesia’s Informal Economy: Legal Gaps and Advocacy for Labor Justice

Abstract

Indonesia's informal economy accounts for a significant portion of the nation's labor force, yet workers in this sector are highly vulnerable to human rights violations, including wage theft, unsafe working conditions, and the lack of access to social protections. This paper explores the legal gaps in Indonesia's labor laws that fail to cover informal workers, and examines the advocacy efforts aimed at addressing these injustices. Using a combination of legal analysis, interviews with labor activists, and case studies, the study identifies key regulatory weaknesses that leave informal workers unprotected and highlights the role of civil society organizations in pushing for policy reforms. The findings indicate that, despite the substantial contribution of informal workers to the economy, legal frameworks remain focused on formal sector employees, resulting in widespread exploitation. The paper also emphasizes the challenges faced by advocacy groups in garnering state support for these workers' rights. By presenting practical policy recommendations, this research contributes to the growing discourse on labor justice and provides a comprehensive framework for legal reform in Indonesia. The study provides an in-depth analysis of the legal and social barriers that informal workers face, offering new insights into Indonesia's labor law shortcomings and potential reforms. This paper advances the field of labor rights by proposing actionable solutions to bridge the gap between formal labor law protections and the realities of the informal economy, enriching global discussions on labor justice.