Freedom of Association and Collective Bargaining: Indonesian Experience 2003-2008

Indonesia has undergone a major transition in its labour law regime over the past ten (10) years, with the ratification of all the ILO Core Labour Conventions including ILO Convention No.87 concerning freedom of association and protection of the right to organize and the enactment of three new Labour Acts since 1998; the Trade Union Act, the Manpower Act and the Settlement of Industrial Disputes Act, to complete its labour law reforms and to give effect to its international obligations. This paper is intended to provide an update on the progress of implementing and realizing freedom of association and collective bargaining in Indonesia over the past five years (2003 – 2008). Background Indonesia completed its legislative reform agenda of covering manpower and industrial relations, with the coming into effect in January 2006 of the Settlement of Industrial Disputes Act, the final of major labour legislations. Indonesia is the world’s fourth most populous country with 223 million inhabitants. The key challenges for Indonesia over the past decade have been to continue the agenda of economic rebuilding after the 1997 financial crisis in Asia which had devastating effects on the country, an