21 J.L. Pol'y & Globalization 50 (2014)
Labor Law in Indonesia

handle is hein.journals/jawpglob21 and id is 50 raw text is: 



Journal of Law, Policy and Globalization                                                    wwwiiste og
ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online)                                                      _- I
Vol.21, 2014                                                                                      11H



                                 Labor Law in Indonesia

                                   Dr. Abdul Rachmad Budiono, S.H., M.H
            Senior Lecture at Faculty of Law University of Brawij aya, Malang, east Java, Indonesia
                    * E-mail of the corresponding author: abdulrachmadbudiono @ gmail.com

Abstract
After reformation era, year 1998, Indonesia has three important acts in the field of labor law. The three acts are
(1) Act Number 21 Year 2000 concerning Trade Unions, (2) Act Number 13 Year 2003 concerning Manpower,
and (3) Act Number 2 Year 2004 concerning Industrial Relations Disputes Settlement. The new regulations of
the acts are (1) every labor has the right to form and become a member of a trade union; (2) labor development
shall be carried out based on the principle of integration, (3) Industrial Relations Court as a part of Industrial
relations Disputes Settlement
Keywords: labor law, Indonesia government


1. Introduction
Indonesia has three important acts in the field of labor law. The three acts are (1) Act Number 21 Year 2000
concerning Trade Unions, (2) Act Number 13 Year 2003 concerning Manpower, and (3) Act Number 2 Year 2004
concerning Industrial Relations Disputes Settlement. These three acts represent the policy direction in the field
of manpower, taking into account future needs and the interest of ensuring justice in society. These three major
labor laws also constitute the package of labor law reform which started in 1998.
The government in collaboration with employer and workers' organization has achieved the goal of establishing
the basic legal framework governing labor and employment relations in line with national aspirations and
interests as well as international labor standards and practices particularly the fundamental principles and rights
at work. It has succeeded putting in place a body of labor laws designed mainly to promote sound and
harmonious industrial relations while respecting workers' right and to ensure efficiency, stability, and equity at
the workplace.


2. Source of Labor Law
The word source means a place from which something comes. Source of law as a phrase means a place that
law comes.11
        The term source is used by lawyers in two different senses. Firstly, it means the historical origins of
the now binding rules.102 Secondly, it may mean the authorities the vest the now binding rules with binding
character. Source of law may also be used to indicate the literary sources in which the law founded.
        Source of labor law means a place that labor law comes. The said sources of labor law are (1) statutes,
(2) contract, (3) custom, (4) judge made law or decision of court, and (5) opinions of learned authors. The
regulations below are part of sources of labor law:
1. Act Number 3 Year 1992 concerning Manpower Social Security;
2. Act Number 21 Year 2000 concerning Trade Unions;
3. Act Number 13 Year 2003 concerning Manpower;
4. Act Number 2 Year 2004 concerning Industrial Relations Disputes Settlement;
5. Government Regulation Number 23 Year 2004 regarding The National Agency for Profession Certification;
6. Government Regulation Number 41 Year 2004 regarding Procedures of Appointment and Dismissal of Ad-
     Hoc Judges of Industrial Relations Court and Ad-Hoc Judges of Supreme Court;
 7. Government Regulation Number 8 Year 2005 Regarding Work System and Organizational Structure of
     Tripartite Cooperation Institution;

101 Abdul Rachmad Budiono, Pengantar Ilmu Hukum, Malang: Batumedia Publishing, 2005, P. 109
102 Satjipto Rahardjo, Ilmu Hukum, Bandung: Alumni, 1986, P. 111.

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