Legal Analysis of the use of Foreign Labor in Construction Projects in Indonesia

This research aims to analyze the legal aspects of employing foreign workers in construction projects in Indonesia and to evaluate the effectiveness of the regulations governing the licensing, supervision, and sanctions related to the use of foreign labor. Alongside increasing foreign investment and infrastructure development, the employment of foreign workers (TKA) in the construction sector has grown, raising legal concerns such as weak enforcement, overlapping regulations, and lenient sanctions for violations. This study employs a normative juridical method with a statutory approach, supported by secondary data from government reports and public records. The findings indicate that although regulations regarding foreign labor are formally established through Law No. 13 of 2003 in conjunction with Law No. 11 of 2020 and Presidential Regulation No. 20 of 2018, their implementation remains ineffective. Weak inter-agency coordination and a lack of labor inspectors are identified as major factors contributing to poor law enforcement. Therefore, policy reform is necessary, including strengthening supervision systems, improving transparency in licensing processes, and enforcing stricter legal sanctions to ensure fair, legal, and locally beneficial management of foreign labor in the construction sector.