Analysis of Industrial Relations in Indonesia:

A Comparative Study with ILO Convention

No.100
1
Eka Saputra, 2 Refany Ratna Dhuhita, 3 Bunga Amelia, ⁴Emiya Karina, ⁵Lamhot Enrico Ferdinanto,
⁶Jim Hidayah Wahid
Industrial Relations Study Program,
Politeknik Ketenagakerjaan, Jakarta, Indonesian
refanyrd@gmail.com
1

Abstract—Industrial Relations is a system of relations formed between actors in the

production of goods and/or services consisting of entrepreneurs, workers/laborers and
the government which is based on the values ​of Pancasila and the 1945 Constitution of
the Republic of Indonesia. Relating to industrial relations issues In Indonesia, the ILO
convention plays a very important role in it, so that it can create industrial relations
that are harmonious, dynamic and just. The ILO Declaration on Fundamental
Principles and Rights at Work is a manifestation of the sincere commitment of the
ILO and its member countries to respect, enhance and implement the principles and
fundamental rights contained in the eight ILO Core Conventions. These rights include
freedom of association for employers and workers as well as the right to carry out
collective bargaining. Indonesia has also ratified all eight ILO Core Conventions and
is committed to embodying these standards in its legislation and practice. With this
aim, Indonesia hopes to maintain industrial relations in Indonesia.

Index Terms—Industrial Relations, Indonesia, ILO. (keywords)

_________________________________________________________________________

I. Introduction
1
The term ‘industrial relations’ (IR) came into common use in Britain and North America
during the 1920s. It has been joined by personnel management (PM) and, since the 1980s,
human resource management (HRM). In Indonesia, industrial relations entered after the
Indonesian proclamation. At that time labor relations were based on conflict between
workers and employers. In other words, at that time industrial relations were not going
well. Then, 4-7 December 1974, the government held a Pancasila Labor Relations Seminar
and agreed that labor relations adhere to the values ​and laws of 1945. After the HPP, it was

1
Paul Edwards,”The Employment Relationship and The Field of Industrial Relations”.

1
continued with a Pancasila Industrial Relations seminar. Lastly, since the establishment of
Employment Law NO. 13 of 2003, the Indonesian labor concept is known as Industrial
Relations.

²Industrial Relations is a relationship or interaction between various parties who are related
to or have an interest in the process of producing goods and services for a company. The
parties that play a role, have an interest in the company's success, and interact directly in
daily activities are entrepreneurs and workers. Additionally, society also has interests, both
as providers of production factors such as goods and services needed by companies and as
consumers or users of products produced by companies. The government also has an
interest, both directly and indirectly, in company growth, including in terms of tax
revenues. So, industrial relations include the relationships among all parties with these
interests.

In an increasingly competitive industrial world, it is desirable for companies to become

more flexible in responding to market demands and maintaining their competitiveness. The
ILO Convention is one of the regulations designed to protect the rights of all parties
involved. This convention is necessary to ensure legal certainty regarding the nature of
work and employment relationships for workers, which, in turn, will have a positive impact
on maintaining harmonious industrial relations and providing legal protection for workers.
ILO continues to strive to create opportunities for women and men to access decent and
productive work in a free, fair, safe and dignified manner. Indonesia, as a member of the
ILO, is required to comply with ILO policies. In terms of legislation, Indonesia has shown
sufficient attention to worker welfare. This research aims to analyze how the content
contained in ILO conventions that have been adopted by Indonesia is implemented, as well
as the factors that influence the effectiveness of the implementation of these laws in
Indonesia. The Indonesian government has ratified 19 ILO Conventions. The laws or
regulations in force in Indonesia are sufficient to encourage social dialogue.2

Several conventions that Indonesia has ratified include Convention 87, Convention 98,
Convention 100, Convention 182, and many more. We will discuss several conventions,
including Convention 100. ILO Convention Number 100 of 1951 concerning equality of
remuneration and wages for male workers and female workers. The ILO asks all countries
to guarantee the implementation of the principles and regulations of equal wages for male
workers and female workers for work of equal value. Several regulations in Indonesia that
implement and encourage ILO Convention Number 100 include Law Number 13 of 2003
concerning Employment, Article 5 paragraph 2 which states that "Everyone has the right to

2
Labor Law number 13 of 2003, article 1 number 16

2
decent work and equal treatment in employment relationships without discrimination. and
receive the same protection against risks arising from the work carried out." Apart from
that, there is also Government Regulation Number 78 of 2015 concerning Wages, Article 3
paragraph 1 which states that "Male and female workers who do the same work or work
with the same service value are entitled to receive the same wages." and Minister of
Manpower Regulation Number 1 of 2017 concerning the Implementation of Wages, Article
4 paragraph 1 which states that "Men and women workers who do the same work or work
with the same service value are entitled to receive the same wages." Factors that influence
the effectiveness of legal implementation of the ILO Convention include aspects of the law
itself, law enforcement, implementation of the law, and industrial relations between
workers, employers and the government.

However, the successful implementation largely depends on how the regulations are applied
in the field, the community's level of understanding of their rights, and the supervision
conducted by authorities. Oversight and enforcement can pose challenges, and in some
cases, there may be a disparity between existing laws and daily practices. To assess the
effective implementation of ILO Convention Number 100 in Indonesia, a more
comprehensive assessment is required, involving monitoring, evaluation, and case studies.
Many non-governmental organizations, international institutions, and governments can
participate in these efforts to ensure the protection of workers' rights in line with the
Convention's principles. Essentially, Indonesia always endeavors to contribute to the
welfare of society and works diligently to protect and uphold the rights of workers in order
to establish fair and decent working conditions.

So, in this journal a problem can be formulated that discusses industrial relations problems
in Indonesia which is assisted by the main points of the ILO convention, then a
harmonious, dynamic and just industrial relationship can be realized. This journal will also
discuss regulations and laws, as well as cases related to industrial relations in Indonesia
which of course are compared with ILO conventions that have been ratified. Finally, the
specific aim of this journal is obtained, namely that readers can find out about the results of
industrial relations analysis in Indonesia with a comparative study of ILO conventions.

II. Methodology

In this journal, two methods will be applied, namely primary and secondary research
methods. The main research method is to use data obtained directly from researchers.
Meanwhile, secondary research methods are data obtained by researchers from existing
sources. So, this journal will get some information from journals who have already
published on an official website that release some accurate journal.

3
III. Literature Review

a. Industrial Relations
Based on Law (UU) no. 13 of 2003 concerning Employment, industrial relations is a
system of relationships formed between Actors in the process of producing goods and/or
services consisting of entrepreneurs, workers/laborers and government based on values
Pancasila and the 1945 Constitution of the Republic of Indonesia. In carrying out Industrial
relations, respectively. These actors have different functions. Government has the function
of setting policies, providing services, carrying out supervision, and taking action against
violation of labor laws and regulations. Workers/laborers and workers/labor unions have
functions to carry out work in accordance with their obligations, maintain order for the sake
of continuity of production, channeling aspirations democratically, develop skills and
expertise and contribute to advancement of the company and fight for the welfare of its
members and members laborers family. Meanwhile, entrepreneurs and entrepreneurs'
organizations have the function of creating partnerships, developing businesses, expanding
employment opportunities, and providing worker/labor welfare in an open, democratic and
skilled manner. Industrial relations has a strategic position in the midst of actors in the
process of producing goods and/or services to achieve the goal of having a harmonious,
dynamic and just relationship. To achieve industrial relations objectives, industrial relations
facilities are also needed as stipulated in Article 103 of Law Number 13 of 2003 concerning
Manpower. There are eight means of industrial relations, including Trade/Labor Unions,
Employers' Organizations, Bipartite Cooperation Institutions, Tripartite Cooperation
Institutions, Company Regulations, Collective Work Agreements, Employment Legislation
and Industrial Relations Dispute Settlement Institutions.
b. Labour Organization International
Labor Organization International or ILO is a body of the United Nations (UN) who keeps
trying to create opportunities for women and men to obtain decent and productive work
freely, fairly, safely and dignified. The main objectives of the ILO is to promote rights in
the workplace, encourage the creation of decent job opportunities, improve social
protection and strengthen dialogue to overcome related problems with the world of work.
The ILO is also a global body responsible for developing and monitoring international
labor standards. In collaboration with its 187 member countries, the ILO seeks to ensure
that these labor standards are respected both in principle and in practice. In the Preamble to
the ILO Constitution it is stated that lasting peace is only possible on the basis of social
justice. Working conditions still reflect injustice and as long as this continues, the various
shocks that occur will threaten the harmony and peace of life. Therefore, there is a need to
improve working conditions and work norms, as well as efforts to overcome the problem of
unemployment. ILO members consist of representatives of government, employers and

4
trade unions. All these members are then present in the structure and are involved in its
decision making in the ILO and equal in position. Collaborative relations between
Indonesia and the ILO have been established since Indonesia officially became a member
of the ILO on 12 June 1950.

c. ILO Convention
The ILO Convention is one of the products released by the ILO. Position of ILO
Conventions in national law it is a study based on sources labor law. ILO Convention is one
form of multilateral agreements. Applicability to an international agreement national law
depends on a country's recognition system to that international agreement. This is aimed at
conventions that have been ratified. In the ratified convention there are binding laws. Based
on Article 19 Paragraph (5), states that no later than one year from the conference closing
session, members are required to bring the convention it is to be brought to that party
authorized to be ratified. If it has been ratified, there is the state's obligation to provide a
report on steps what has been done regarding the convention. So, if you have ratified a
convention, it is very mandatory for it to be implemented and enforced in countries that
have ratified a convention.
d. ILO Convention No. 100 of 1951
Industrial relations are closely related to the wage system. This is in accordance with ILO
convention no. 100 of 1951 concerning Equal Remuneration for Women and Men for Work
of Equal Value. The focus of ILO convention no. 100 of 1951 is to eliminate wage
discrimination based on gender, create fair working conditions, and ensure that wages for
the same work are equal, regardless of the gender of the worker. This convention was born
based on facts which show that discriminatory practices occur not only regarding the
principle of equal remuneration for male workers and female workers, but also regarding
treatment and opportunities in work and positions. Therefore, it is felt necessary to draft
and ratify a Convention that specifically prohibits discrimination in employment and
positions based on race, color, sex, religion, political views, nationality or hereditary origin.

IV. Result and Discussion

The issue of employment is closely related to the wage system. Every year on Labor Day,
the wage system is one of the demands voiced by workers. So far, the policy regarding the
minimum wage set in Indonesia still applies generally, which is the Regional Minimum
Wage (UMR) and the Sectoral Regional Minimum Wage (UMRS) at levels I and II, without
differentiation based on gender. Wage differences among workers are suspected to occur

5
not only due to the quality of human capital but also because of gender differences. This
illustrates that there is gender inequality in the world of employment. 3

Jobs that are equal in their value to the organization ought to be equally compensated,
whether or not the work content of those jobs is similar. The impetus for the formulation of
the “comparable worth” concept has come primarily from the substantial differences in the
types of jobs held by men and by women and from the belief that those traditionally held by
women receive lower compensation because they are held by women. Employment
discrimination exists when one class of people is denied access to higher-paying jobs solely
or partly on the basis of social characteristics. If, for example, women or minority men are
denied access to managerial positions solely or partly because of their sex or minority
status— that is discrimination. This pattern of disparate treatment is not easy to detect and
is often difficult to measure or prove, As a result of denial of access to better paying jobs,
women and minorities earn lower wages on the average than do men and non minorities

In this convention, it is mentioned that the term 'remuneration' includes basic wages or
minimum wages, as well as any additional income that must be paid directly or indirectly,
either in cash or in kind, by the employer to the employees as part of the employment
agreement. These provisions indicate that the term 'remuneration' encompasses not only
basic wages but also various other welfare benefits provided by the employer to female
workers. However, in practice, this is often not the case. Female workers who are entitled to
receive welfare benefits, such as those who do not receive spousal and child allowances, are
often deprived of these benefits. The company does not cover the welfare benefits for their
husbands and children. From a gender perspective, there is a prevalent issue of low wages
for female workers, who are generally positioned as secondary breadwinners. Additionally,
there is an assumption that female workers are easily manageable and have lower
resistance.

Women and men in Indonesia have equal opportunities to participate in the development
process in various aspects of life. This is a goal of SDG Goal 5, which is gender equality,
and is enshrined in the 1945 Constitution Article 27 Paragraph 2, which states, "Every
citizen has the right to a job and a decent livelihood for humanity," and Article 28D, which
states, "Everyone has the right to work and to fair and decent treatment in employment."
However, in reality, women are still treated unfairly. This injustice can arise from cultural
factors, the prevailing societal values/norms, religion, or misconceptions about the status of
women. Gender inequalities may take the form of labor market segmentation, gender
employment gaps and gender pay gaps. Gender differences are also evident in the working
conditions and job quality experienced by women and men once they are employed. Gender
3
Sitanggang, “The Impact of Economic Structure on Labor Absorption”.

6
inequality occurs in various aspects of life, including the workplace. Gender equality and
justice in the field of employment can be achieved through gender mainstreaming, which
involves recognizing women's contributions in the workplace, enabling women to access
and control all available resources, and providing adequate protection for female workers to
prevent the exploitation and sexual harassment of women in the labor market in Indonesia.

Gender equality and justice in the field of employment can be achieved through gender
mainstreaming, where there is recognition of women's contributions in the workforce,
enabling women to have access to and control over all available resources, and providing
adequate protection for female workers to prevent the exploitation and sexual harassment of
women in the labor market in Indonesia.

Violations of women's labor rights are often linked to the non-fulfillment of their basic
needs. To ensure the realization of these rights, the Indonesian government has
implemented various concrete measures in accordance with the ILO Convention. One
example is the direct counseling provided to female workers to enhance their understanding
of their rights. Additionally, the government has established legal regulations specifically
designed to protect female workers. Collaboration and oversight between the Indonesian
government and the ILO are also carried out to ensure the implementation of ratified ILO
Conventions. All of these steps aim to guarantee the fulfillment of rights and equal
protection for female workers in Indonesia. One vital role of the government in upholding
fundamental rights in the workplace is through labor inspection. Labor inspection is tasked
with enforcing legal regulations, including work conditions and requirements, and
overseeing work practices within companies to ensure that workers receive appropriate
legal protection.

In this convention, it is mentioned that the term 'remuneration' includes basic wages or
minimum wages, as well as any additional income that must be paid directly or indirectly,
either in cash or in kind, by the employer to the employees as part of the employment
agreement. These provisions indicate that the term 'remuneration' encompasses not only
basic wages but also various other welfare benefits provided by the employer to female
workers. However, in practice, this is often not the case. Female workers who are entitled to
receive welfare benefits, such as those who do not receive spousal and child allowances, are
often deprived of these benefits. The company does not cover the welfare benefits for their
husbands and children. From a gender perspective, there is a prevalent issue of low wages
for female workers, who are generally positioned as secondary breadwinners. Additionally,
there is an assumption that female workers are easily manageable and have lower
resistance.

7
 V. Conclusion
Industrial relations in Indonesia began after the proclamation. Industrial relations are based
on conflicts between workers and employers. Then, with the existence of these problems
the government agreed on the existence of labor relations guided by values and laws, as
well as the 1945 Constitution. Aiming to guarantee and fulfill the obligations of all parties,
to fulfill these rights, Indonesia makes the ILO a source of labor law to realize harmonious,
dynamic, and fair industrial relations. Increasingly competitive in the industrial world, it is
now expected that companies can be more flexible and maintain competitiveness. The
existence of ILO conventions can guarantee legal certainty regarding the nature of work
and employment relations that will have an impact on industrial relations. Indonesia has
ratified a number of conventions, one of which is the 100 convention which emphasizes
equal pay between men and women in jobs with equal value. The implementation of this
principle is reflected in national regulations stated in the Manpower Law, Government
Regulations, concerning wages, and Minister of Manpower Regulations concerning the
Implementation of Wages. It aims to provide equal treatment and equal protection of
occupational risks for all workers, without gender discrimination.

Labor problems are related to the wage system, and every year on Labor Day, the wage
system becomes one of the demands expressed by workers. Currently, the policy regarding
the minimum wage in Indonesia uses Regional Minimum Wage (UMR) and Regional
Minimum Wage Sector (UMRS) level I and II without differentiating gender. Wage
differences among workers occur due to gender differences, not only on the quality of
human capital. This illustrates the existence of gender inequality in the world of
employment. From a gender perspective, there is an issue related to low wages for female
workers who are often considered the backbone of the second support. Efforts to achieve
gender equality and justice in employment can be realized through gender alignment. This
involves recognizing the contribution of women in the workplace, giving women access
and control over all available resources, and providing adequate safeguards to prevent
sexual exploitation and harassment of women in the Indonesian labor market. 4

4
Sitanggang, “The Impact of Economic Structure on Labor Absorption”.

8
 References

Ahmaddien, I. (2020). The Influence of Minimum Wage Policy on the Absorption of Female

Workers in Indonesia. Management Scientific Journal, 22-32.

Eurofound. (2020). Gender equality at work. Luxembourg: Publications Office of the European

Union.

Edward, P. (2003). The employment relationship and the field of industrial relations.

Hakiki, I. O. (2023). The effectiveness of Ilo Convention Number 100 of 1951 on . History

Education Student Scientific Journal, 2822-2826.

Hartmann, D. J. (n.d.). Women, Work, and Wages: Equal Pay for Jobs of Equal Value.

Washington: National Academy Press.

Indonesian Government. (2003, March 25). Law of the Republic of Indonesia Number 13 of

2003. Ministry of Industry. Retrieved November 8, 2023, from

https://kemenperin.go.id/kompetensi/UU_13_2003.pdf

Khadijah, S. N. (2015, June 29). Workers' Rights to Severance Pay, Rewards for Years of

Service and Replacement Money for Housing Rights as well as Treatment and Care on

Termination of Employment. Medan Area University Digital Repository. Retrieved

November 8, 2023, from

https://repositori.uma.ac.id/bitstream/123456789/905/5/118400155_file5.pdf

Khairunissa, S., & Pramono, A. (2016). Diponegoro Law Review. International Labor

Organization (ILO) Conventions in Indonesia, 5(2), 3-8.

https://media.neliti.com/media/publications/19141-ID-analysis-law-ratification-dan-impl

ementasi-konvensi-konvensi-international-labou.pdf

9
Maswandi. (2017, June). Journal of Public Administration. Settlement of Employment Relations

Disputes in the Industrial Relations Court, 5(1), 37-42. 10.31289/publika.v5i1.1203

Sitanggang, I. R. (2004). The Impact of Economic Structure on Labor Absorption. Indonesian

Journal of Development Economics, 103-133.

Uli, S. (2005). Female Workers in Companies from a Legal and Gender Perspective. Equality

Journal, 87-92.

10