This is a victory for all members and employees of PT Freeport Indonesia, as well as for the more than 5.33 million pension fund beneficiaries across Indonesia.
The Constitutional Court (MK) has granted the petition for judicial review filed by the PK FPE KSBSI (a labor union) of PT Freeport Indonesia regarding the Law on the Development and Strengthening of the Financial Sector (P2SK Law); the ruling was read out on Monday, June 29, 2026.
The petition challenged the phrase “must be carried out periodically” regarding the process of selecting pension benefits to which the beneficiaries are entitled.
In its ruling, the Constitutional Court granted the petition in its entirety regarding the challenged article, with no part of it being rejected.
This ruling establishes a new legal standard affirming that pension benefit payments may be made as a lump sum—in accordance with the participant’s choice and rights—rather than being mandatorily restricted to periodic payments.
The Constitutional Court also mandates that this change be incorporated into the revision of Law Number 13 of 2003 concerning Manpower, in alignment with Constitutional Court Ruling Number 168/PUU-XXI/2023.
This ruling marks a significant milestone in the labor unions’ struggle to safeguard workers’ rights regarding old-age security and pension funds, while simultaneously reinforcing the principles of fairness, legal certainty, and respect for workers’ rights in Indonesia.
