6.1 Legislation in brief
In addition to the Employment Law and the Industrial Disputes Law, Law No.21 of 2000 on Labour Unions (Law No .21) is also relevant to industrial relations in Indonesia.
Law No .21 contains detailed provisions and procedures for the resolution of various types of disputes and grievances. These processes are often complex and time-consuming, consisting of multiple levels of negotiation and mediation in attempts to resolve the dispute.
6.2 Role of trade unions and collective negotiations
Indonesia has moved only in the last decade from having one trade union organisation under the control of the State, to having a confusing and rapidly growing number of different unions, federations and confederations.
Collective negotiations, both with and without registered trade union involvement, are reasonably common, as is the entering into Collective Labour Agreements.
6.3 Industrial action and disputes
The Employment Law recognises the ability of parties to engage in strikes or lockouts, and sets out certain procedures in relation to these, including informing both the other party and the Ministry of Manpower and Transmigration in writing of the proposed industrial action. Penalties may be imposed for failure to comply with the legal requirements.