The state, democratic transition and employment relations in Indonesia

Abstract

Indonesia's transition since 1998 from authoritarian developmentalism to democracy has had a fundamental effect on employment relations. Although the basic structure of the economy has not changed, the twin processes of democratisation and decentralisation have seen the return of a degree of political space not available in Indonesia since the 1950s. This transformation was underpinned by a shift in the balance between the primary logics of the state that has seen an enhanced emphasis on legitimation. It has reshaped expectations of workplace-level employment relations practice in the country's small formal sector and of trade unions' engagement with policy-making and electoral politics. This article traces the processes through which this transformation occurred and analyses both its successes and the ongoing challenges to more robust implementation of the country's industrial relations framework.

COVID-19 in Southeast Asia: Implications for workers and unions

“…Cambodia, meanwhile, is best described as having a hybrid, electoral authoritarian regime, whereby formally democratic processes are controlled by the Cambodian People's Party and, in particular, Prime Minister Hun Sen. Vietnam's socialist leanings are reflected in its industrial relations system, and most notably in its single, state-controlled union (Do, 2017). 2 By contrast, on paper at least, the industrial relations systems in Cambodia and Indonesia are very similar, reflecting the depth of influence of the ILO in designing those systems' architecture (Ford et al, 2020;Ford and Sirait, 2016). In both countries, unions have increasingly engaged as political actors, challenging their respective governments through street-based demonstrations but also at the ballot box.…”

The International Labour Organization as a development actor in Southeast Asia

“…One key plank in the ILO's labor regulation work in Myanmar has been quite traditional, namely seeking to ensure that the country's regulatory and institutional arrangements meet international expectations with regard to freedom of association and trade union involvement in tripartite mechanisms of policy-making and dispute resolution. As in Cambodia, Indonesia and Timor-Leste, a strong focus of these efforts has been on the establishment of a 'package' of laws that embed the principles of tripartism and social dialogue in the legal bedrock of industrial relations (Ford 2016;Ford and Sirait 2016;Ward and Mouyly 2016). With the ILO's assistance, the Government of Myanmar drafted and passed a series of new labor laws enabling the formation of trade unions and employer organizations and establishing institutions and regulatory provisions to allow for dispute resolution, strikes and collective bargaining.…”

“…6 Many imperfections remain in the labor regulatory framework (Gillan and Thein 2016). Myanmar is, moreover, experiencing many of the same challenges of implementation faced by Cambodia, Indonesia and Timor-Leste in their attempts to establish a functioning system of labor relations (Ford 2016;Ford and Sirait 2016;Ward and Mouyly 2016). However, in a context where workers, employers and government agencies had no understanding or experience of freedom of association or collective bargaining, the ILO has played a crucial role in creating a formal architecture for industrial relations that recognizes the right of workers to collective representation.…”

The making of industrial relations in Timor-Leste

“…An important facet of this process in Timor-Leste -as, indeed, in Indonesia (Ford, 2009;Ford and Sirait, 2016 Employers' associations and the nascent labour movement have also benefited from significant and ongoing funding and technical support from their international counterparts, in the unions' case from the international labour movement, but particularly from Union Aid Abroad-Australian People for Health, Education and Development Abroad (APHEDA), and in the case of employers, from bilateral and multilateral donors who have supported initiatives including the embedding of an international advisor in the Chamber of Commerce and Industry (CCI-TL).…”

“…An important facet of this process in Timor-Leste -as, indeed, in Indonesia (Ford, 2009;Ford and Sirait, 2016) -has been the provision of financial and technical assistance by international bodies. The government has had access to technical support and financial aid, including support for industrial relations institution building from bilateral and multilateral donors.…”