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Indonesia Legal Environment Analysis

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Indonesia - Legal/Regulatory Environment -Bethany’s Section

Employment and Labor Regulations
The Department of Manpower and Transmigration (the Department of Manpower) controls all labor matters in Indonesia. The Department of Manpower creates protocol on employment affairs and distributes laws. Law No. 13 of 2003 Regarding Manpower is the main law handling employment matters in Indonesia (Fallah, Robert).
Protected Classes
Indonesia does not have one defining law establishing its protected classes. There is not an all-encompassing ant-discrimination ruling, instead there are several regulations which forbid discrimination and advocate for equality. The pertinent laws involve: “the 1945 constitution; the Labour Law (Law No.13 of 2003 on …show more content…
80 of 1957 protects employees’ rights against discrimination in regards to gender, employers may not discriminate between men and women in regards to equal pay for equal work; Law No.4 of 1997 on Disabled People requires employers to hire at least one disabled worker for every 100 employed; Law No.40 of 2008 on the Elimination of Racial and Ethnic Discrimination forbids discrimination on the foundation of “race, ethnicity in the civil, political, economic, social, and cultural fields”. Law No.40 of 2008 offers the chief structure for anti-discrimination in Indonesia (Discrimination law and inequality in …show more content…
Then basic legislation governing labor unions in Indonesian Law is No. 21 of 2000 regarding Labor Unions (International Labour Organization).
Workers in Indonesia are free to join or create organizations to represent them; employers are not allowed to intrude on the process. There are two ILO (International Labor Organization) agreements that are designed to protect workers’ rights to freedom of union and collective bargaining. They are: “Freedom of Association and Protection of the Right to Organise Convention No. 87 of 1948 (C87)” and “Application of the Principles of the Right to Organise and to Bargain Collectively Convention No. 98 of 1949 (C98)” (Better Work Indonesia Indonesian Labour Guide).
Workers are free to join, but they do not have to. A minimum of ten workers are required to form a union, and a worker may only join one union per factory. Unions are prohibited from discriminating against potential members “based on discriminatory grounds, such as political allegiance, religion, ethnicity or sex” (Better Work Indonesia Indonesian Labour

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