The Indonesian manpower affairs law is provided in the Law No. 13 of 2013 concerning Manpower. The manpower law governs all matters related to the manpower at the time, before, during and after work. The purpose of the establishment of the manpower law includes:
- to empower and assign the manpower on an optimum way and humanly;
- to materialize the even distribution of work opportunity and provision of manpower according to the national development’s and region’s need.
- to provide the manpower with protection in materializing the welfare; and
- to improve the welfare of the worker and his/her family.
In addition, the manpower law also provides the relations between manpower and employer. The employment relations occurred due to employment agreement between the employer and the worker/labor. The employment relations consist of two types, namely, employment relations based on a employment agreement with specified period (PKWT) and employment relations based on employment agreement with unspecified period (PKWTT). The employment agreement so entered into can be made in writing or orally. The employment agreement that is required to be in writing must be performed according to the prevailing laws and regulation. The employment relations are provided in the Chapter IX Article 50-66 of Law No. 13 of 2003 concerning Manpower. The employment agreement entered into between the employer and the worker/labor must be based on and in accordance with the substance of the Law No. 13 of 2003 concerning Manpower and such other laws and regulation related thereto.
In engaging in company’s activities, the employer shall have the obligation to satisfy the right of each worker. The right of the worker shall include among others, the right to get equal treatment without discrimination no matter how it is based on, right to improve working competency, right to perform religious service according to the relevant worker’s religion and belief, right to get wage or income according to human prestige and dignity, right to get protection, welfare, health and safety of work.
In case of a worker feels that his/her rights being protected and set out in the Law No. 13 of 2003 concerning Manpower are not satisfied and neglected by the employer, then such matters will result in particular disputes between the employer and the relevant worker. If the dispute occurred, then the law and regulation in Indonesia has set out the matters in the Law No. 2 of 2004 concerning Settlement of Industrial Relations Dispute. Industrial Relations Dispute means a divergence of opinion that leads to conflict between the employer or group of employers and its/their worker/labor or worker union because of the divergence of opinion regarding the right, conflict of interest, conflict of employment termination and conflict between worker union in the same company. Any form of dispute has its way or procedure to seek settlement be it through negotiation, bipartite, mediation, conciliation, arbitration or a settlement sought through Industrial Relations Tribune.
Regulations related to manpower:
- Law No. 13 of 2003 concerning Manpower;
- Law No. 2 of 2004 concerning Settlement of Industrial Relations Dispute;
- Law No. 21 of 2000 concerning Worker Union;
- Law No. 40 of 2004 concerning Social Insurance System;
- Law No. 39 of 200 concerning Placement and Protection of Indonesian Manpower Abroad;
- Law No. 21 of 2003 concerning Ratification of ILO convention No. 81 Concerning labor Inspection in Industry and commerce (ILO Convention No. 81 concerning Manpower Supervision in Industry and Commerce)
- Law No. 1 of 2000 concerning Ratification of ILO Convention No. 182 Concerning Prohibition and Immediate Action for Elimination of the Worst Forms of Child Labor (ILO Convention No. 182 concerning Prohibition and Immediate Action for Worst Forms of Child labor)
- Law No. 21 of 2003 1999 concerning Ratification of ILO Convention No. 111 concerning Discrimination in Respect of Employment and Occupation (ILO Convention concerning Discrimination in Respect of Employment and Occupation).
- Law No. 20 of 1999 concerning Ratification of ILO Convention No. 138 concerning Minimum Age for Admission to Employment (ILO Convention concerning Minimum Age for Admission to Employment);
- Law No. 19 of 1999 concerning Ratification of ILO Convention No. 105 concerning the Abolition of Forced Labor (ILO Convention concerning Abolition of Forced Labor).
- Government Regulation No. 46 of 2015 concerning Maintaining Old Age Insurance Program;
- Government Regulation No. 45 of 2015 concerning Maintaining Pension Insurance Program;
- Government Regulation No. 44 of 2015 concerning Maintaining Employment Insurance and Death Insurance Program;
- Government Regulation No. 4 of 2015 concerning Implementation of Supervision of Placement and Protection of Indonesian Manpower Abroad.
- Presidential Regulation No. 72 of 2014 concerning Employment of Expatriate and Organizing of Education and Training for Aiding Manpower.
- Presidential Regulation No. 111 of 2013 concerning Amendment to Presidential Regulation Number 12 of 2013 concerning Health Insurance.
- Presidential Regulation No. 21 of 2010 concerning Manpower Supervision.
- Presidential Regulation No. 81 of 2006 concerning National Placement and Protection of Manpower Agency.
- Presidential Regulation No. 64 of 2011 concerning Medical and Psychological Check up for Indonesian Manpower Candidate.
- Presidential Regulation No. 45 of 2013 concerning Coordination of Indonesian Worker Deportation.
- Presidential Regulation No. 12 of 2013 concerning Health Insurance.