Labor law is an importnat factor in the country’s economic system. Good quality labor will have a progresive effect on Country’s economiy. A country’s economic progress must also be a accompanied by an increase in the welfare of workers.
Indonesia as a country based on law (Rechtstat) provide legal protection for workers. Both those working domestically and migrant workers. Like wise, Indonesia provides protection to entrepreneurs in carrying out their bussiness in Indonesia.
The relationship between workers and entrepreneurs is an important factor in the progress of the Indonesia economy, therefore relationship between workers and entrepeneurs must 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 betwen workers and employers are resolve in several stages :
1. Bipartite is an effort to find a resolution to disputes between workers and entrepreneurs.
2. Mediation is an effort onvolving the indonesian governement as mediator in disputes betwen workers and entreprenuers, if bipartie efforts do not find a solution to dispute, the workers or entrepeneurs can ask the city/dicstrict or the provincial government to mediate to find a resolution of industrial relations dispute.
3. The Industrial Relations Court is a court that has the authority to examineand adjudicate industrial relations disputes betwen workers and entrepeneurs when mediation efforts are deemed by workers or entrepeneurs to be inconsistent with the provisions of regulations.
Industrial Relations Court in Indonesia
According to act no. 2/2024, 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 4/2004, Industrial Relations Dispute are differences of opinion that result in conflict between entrepeneru or entrepreneurs and workers/ labour or labour unions due to disputes regarding rights, disputes over interest, disputes over termination of employment relations adn disputes between labour union in one company.
The Industrial Relation Court located in the capital of provinces and in insutrially dense cities, this in accordance with article 59 of act no. 2/2004 :
Sumatera Island
1. North Sumatera Province with capital city : Medan.
2. Aceh province with capital city : Banda Aceh.
3. Riau Province with capital city : Pekanbaru.
4. West Sumatera Province with capital city : Padang.
5. Riau Islands Province with capital city : Tanjung Pinang
6. Bangka Belitung Province with capital city : Pangkal Pinang.
7. Jambi Province with capital city : Jambi.
8. South Sumatera Province with capital city : Palembang.
9. Bengkulu Province with capital city : Bengkulu.
10. Lampung Province with capital city : Bandar Lampung.
