Regulations Of Industrial Relation Disputes in Indonesia

The regulation for Industrial Relation disputes in Indonesia is based on the enactment of Law Number 2 of 2004 and labour law, which reforms under the IRC (Industrial Relations Court). This system, which operation began in 2006, limits the interference from the government regarding ending the industrial relation disputes. This is more about simplifying what is usually bureaucratic and complicated.

The process is also very effective. It does not cost much, waste time, and it is also accessible and fair. What the IRC can hear regarding this dispute involves these key points:
- Rights disputes
- Interest disputes
- Termination disputes
- Inter-union disputes

1. Rights disputes
Rights disputes are mostly caused by a right violation committed by one of the parties in dispute. The Indonesian labour's job is to determine the first level of the dispute.

2. Interest disputes
This occurs when a conflicting opinion to another related to the amendment and drafting of the company's regulations and employment does not end. The court is entitled to decide the first and the final level of it.

3. Termination disputes
Termination disputes can only be determined on the first level.

4. Inter-union disputes
Inter-union disputes can also be determined on the first and the final level of it.

The IRC has the primary job to hear all types of disputes before deciding the final jurisdiction over inter-union disputes, just like with interest disputes. 
These two types of disputes cannot be brought to The Supreme Court. The fact is that the majority of employers and employees do not have the time (or feel like allocating any) to return the matter to court. This is why representatives from the trade union might take over them. Still, their capacity as the embodiment of the employers or the employees is frail under the IRC.
Although this system has limited the government's interference, that does not mean it has no problems. There is a serious challenge regarding the system of the dispute resolution. It is mostly for the Supreme Court. The number of problems which deserve to be under serious consideration includes:

• A great duty on developing the judges and ad hoc judges.
• Lack of transparency regarding the decision making.
• The internal management's unpreparedness when it comes to human resources.
• The lack of data collecting.

This is also the same as the lack of sharing the knowledge, which should be run by courts and judges every month. If that is the case, no wonder that some Industrial Relation disputes in Indonesia can take ages to settle. This is why, in some cases, one or both parties have decided to come up with the mutually agreeable result in the bipartite resolution.

The development of Industrial Relation disputes in Indonesia cannot be separated from the work nature, which is influenced by social and economic determinant and the variations of employment regulations. Pancasila (The Five Principles), which has been the nation's main principles for all, has been the formulated policy since 1974. 

Pancasila balances rights with responsibilities. Still, since not all companies rely on this policy, disputes are difficult to avoid. That does not mean the matter cannot be solved, though. When there is a will, there is a way.

Sources: BPL Indonesi