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Labour law



Labour is an important factor in the country's economic system. Good quality labor will have a progressive effect on a country's economy. A country's economic progress must also be accompanied by an increase in the welfare of workers.


Indonesia as a country based on law (rechtstat) provides legal protection for workers and entrepreneurs. Indonesia provides legal protection for workers, both those working domestically and migrant workers. Likewise, Indonesia provides protection to entrepreneurs in carrying out their business in Indonesia.


The relationship between workers and entrepreneurs is an important factor in the progress of the Indonesian economy, therefore the relationship between workers and entrepreneurs must be based on justice, certainty and benefit.


Employment Dispute Resolution.


Protection for workers and entrepreneurs in Indonesia is embodied in act no. 13/2003 and act no. 4/2004 where industrial relations disputes between workers and employers are resolved in several stages :


1. Bipartite is an effort to find a resolution to disputes between workers and entrepreneurs.


2. Mediation is an effort involving the Indonesian government as mediator in disputes between workers and entrepreneurs, if bipartite efforts do not find a solution to the dispute, then workers and entrepreneurs can ask the city/district and/or provincial government to mediate to find a resolution of the industrial relations dispute.


3. The Industrial Relations Court is a court that has the authority to examine and adjudicate industrial relations disputes between workers and entrepreneurs when mediation efforts are deemed by workers or entrepreneurs to be inconsistent with the provisions of regulations.


Industrial Relations Court in Indonesia


According to act no. 2/2004, The Industrial Relations Court is a special court established within the district court which has the authority to examine, adjudicate and make decisions on industrial relations disputes.


According to act no. 2/2004 Industrial Relations Disputes are differences of opinion that result in conflict between entrepreneur or entrepreneurs and workers/laborers or labor unions due to disputes regarding rights, disputes over interests, disputes over termination of employment relations and disputes between labor unions in one company.


The Industrial Relations Court is located in the capital of province and in industrially dense cities, this is in accordance with Article 59 of Law No. 2/2004, in the following 38 provinces in Indonesia:


Sumatera Island


1. Aceh Province with capital city: Banda Aceh

2. North Sumatra Province with capital city: Medan

3. South Sumatra Province with capital city: Palembang

4. West Sumatra Province with capital city: Padang 5. Bengkulu Province with capital city: Bengkulu

6. Riau Province with capital city: Pekanbaru

7. Riau Islands Province with capital city: Tanjung Pinang

8. Jambi Province with capital city: Jambi

9. Lampung Province with capital city: Bandar Lampung

10. Bangka Belitung Province with capital city: Pangkal Pinang


Kalimantan (Borneo) Island


11. West Kalimantan Province with capital city: Pontianak

12. East Kalimantan Province with capital city: Samarinda

13. South Kalimantan Province with capital city: Banjarbaru

14. Central Kalimantan Province with capital city: Palangkaraya

15. North Kalimantan Province with capital city: Tanjung Selor


Java Island


16. Banten Province with capital city: Serang

17. DKI Jakarta Province with capital city: Jakarta 18. West Java Province with capital city: Bandung 19. Central Java Province with capital city: Semarang 20. Yogyakarta Special Region Province with Capital City: Yogyakarta

21. East Java Province with capital city: Surabaya


Bali & Lombok Island


22. Bali Province with capital city: Denpasar

23. East Nusa Tenggara Province with capital city: Kupang

24. West Nusa Tenggara Province with capital city: Mataram


Sulawesi Island


25. Gorontalo Province with capital city: Gorontalo 26. West Sulawesi Province with capital city: Mamuju 27. Central Sulawesi Province with capital city: Palu 28. North Sulawesi Province with capital city: Manado

29. Southeast Sulawesi Province with capital city: Kendari

30. South Sulawesi Province with capital city: Makassar


Maluku Island


31. North Maluku Province with capital city: Sofifi

32. Maluku Province with capital city: Ambon


Papua Island


33. West Papua Province with capital city: Manokwari

34. Papua Province with capital city: Jayapura

35. Central Papua Province with capital city: Nabire 36. Papua Mountain Province with Capital City: Jayawijaya

37. South Papua Province with capital city: Merauke 38. Southwest Papua Province with capital city: Sorong


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