Bali Lawmaker Calls for Stronger Legal Protection of Daily Workers in Tourism Sector
A member of Indonesia's House of Representatives for Bali has called for stronger legal protections for casual daily workers long employed in the tourism sector, citing regulations that should convert long-term daily workers to permanent status. The discussion, held during a public forum on Bali's 2027 minimum wage, also addressed the gap between current wages and the cost of living. While there is no direct impact on tourists, the debate could influence labor conditions and service costs in Bali's hospitality industry over time.
I Nyoman Parta, a member of Indonesia's House of Representatives (DPR RI) Commission III representing Bali, raised concerns about the widespread practice of employing casual "Daily Workers" (DW) for extended periods in Bali's tourism sector. He spoke during a public dialogue held on 9 October 2026 at Undiknas University in Denpasar, part of a forum on the future level of Bali's Provincial Minimum Wage (UMP).
Under Government Regulation No. 35 of 2021 (Article 10), daily workers who work 21 or more days per month for three consecutive months must legally be converted to Indefinite Time Work Agreement (PKWTT) status, granting them rights similar to permanent employees. Parta argued that many tourism workers remain in daily-worker status for extended periods without receiving this legally mandated protection.
The forum also addressed the 2027 minimum wage debate. Bali's 2026 UMP is set at Rp 3,207,459 per month, far below the Rp 5.2 million per month that labor unions cite as the realistic cost of decent living (KHL) in Bali. Parta highlighted that workers commuting from outside Denpasar and Badung must cover boarding costs (often exceeding Rp 1,200,000 per month), transportation, and food from their wages.
Parta stressed that tourism growth should be measured not only by business expansion but also by worker welfare, and that both employers and the government share responsibility for ensuring decent labor conditions. He also noted that Balinese workers play a key role in sustaining the cultural traditions that attract tourists to the island.
The forum included the Head of the Bali Provincial Manpower Service, the Head of Badung's Hotel and Restaurant Association (PHRI), an economics academic, and a representative of the Bali Governor's Expert Group.
Things to Consider
This policy discussion has no immediate effect on tourists, but future minimum wage increases or stronger labor protections could eventually influence pricing at hotels, restaurants, and tour services. Long-term residents and expats running businesses in Bali should monitor upcoming 2027 UMP decisions, as compliance with worker classification rules (daily vs. permanent status) may affect staffing costs. Travelers interested in supporting fair labor practices may consider choosing establishments known for proper worker treatment.
Source: Bali Discovery | News on Bali Tourism & Life Since 1998