This study critically examines the transformation of the regulatory framework governing Fixed-Term Employment Agreements (Perjanjian Kerja Waktu Tertentu/PKWT) following the enactment of Indonesia’s Job Creation Law and its implications for workers’ legal protection. The research focuses on the paradigm shift from a worker-protection-oriented model toward labor market flexibility and its impact on employment security. Using a normative juridical approach, this study employs comparative legal analysis between the Manpower Act No. 13 of 2003 and the Job Creation Law No. 6 of 2023, along with its implementing regulation, Government Regulation No. 35 of 2021. The analysis is supported by systematic statutory interpretation, labor law doctrine, and Constitutional Court Decision No. 168/PUU-XXI/2023. The findings reveal a significant regulatory shift characterized by the extension of the maximum duration of fixed-term contracts, the removal of mandatory grace periods for contract renewal, and the substantial narrowing of grounds for automatic conversion of PKWT into permanent employment agreements (PKWTT). Although the Job Creation Law introduces new protective instruments, including end-of-contract compensation and expanded social security coverage, these measures are insufficient to offset the decline in job security and legal certainty for workers. Consequently, workers face an increased risk of prolonged employment precarity. This study underscores the urgency of rebalancing labor market flexibility with the constitutional rights of workers in Indonesia’s future labor law reform. Keywords: Job Creation Law; Fixed-Term Employment Agreement (PKWT); Legal Protection; Labor Market Flexibility; Precarious Work; Constitutional Court Decision.
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