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A Brief History of Labour Laws
Regulations concerning rights and obligations between employers and workers/labourers and trade unions/labour unions are regulated in the Civil Code (Burgerlijk Wetboek Voor Indonesia) along with Ordinances (Ordonnantie) in the field of labour made by the Dutch East Indies Government.
Provisions in the Civil Code and Ordinances in the field of labour made by the Dutch East Indies Government were still in effect.
The first labour regulation made by the Indonesian Government was Law Number 12 of 1948 concerning the 1948 Work Law which was stipulated in Yogyakarta on 20 April 1948. This law was declared effective based on Law Number 1 of 1951 concerning Statement on the Enactment of the 1948 Work Law Number 12 of the Republic of Indonesia for all of Indonesia. Law Number 23 of 1948 concerning Labour Inspection was also made which is still in effect today.
In the late 1950 to the mid-1990, the Indonesian government began to make itself and implement several laws and implementing regulations in the labour sector. The laws made include:
a. Law of the Republic of Indonesia Number 21 of 1954 concerning Labour Agreements Between Labour Unions and Employers;
b. Law of the Republic of Indonesia Number 22 of 1957 concerning Settlement of Labour Disputes;
c. Law of the Republic of Indonesia Number 14 of 1969 concerning Basic Provisions Regarding Labour;
d. Law of the Republic of Indonesia Number 1 of 1970 concerning Occupational Safety.
On 3 October 1997, the Government of Indonesia promulgated Law of the Republic of Indonesia Number 25 of 1997 concerning Labour (Law 25/1997) which was declared effective on 1 October 1998. This law declared invalid several ordinances made by the Dutch East Indies Government and several laws including Law 1/1951, Law 21/1954, Law 14/1969.
On 10 November 1998, the Government of Indonesia promulgated Law of the Republic of Indonesia Number 11 of 1998 concerning Amendment to the Applicability of Law Number 25 of 1997 concerning Labour (Law 11/1998). Law 11/1998 basically stipulates first the entering into force of Law 25/1997 which was originally dated 1 October 1998 changed to 10 November 1998. Second, regulations declared invalid by Law 25/1997 are declared to remain in effect.
The implementation of Law 25/1997 was amended again by a Government Regulation in Lieu of Law Number 3 of 2000 concerning Amendment to Law Number 11 of 1998 concerning Amendment to the Applicability of Law Number 25 of 1997 concerning Labour jo. Law Number 28 of 2000 concerning the Stipulation of Government Regulation in Lieu of Law Number 3 of 2000 concerning Amendment to Law Number 11 of 1998 concerning Amendment to the Applicability of Law Number 25 of 1997 concerning Labour into Law (Law 28/2000).
On 25 March 2003, the Government of Indonesia promulgated Law Number 13 of 2003 concerning Labour (Law 13/2003) which was declared effective since the date of its promulgation. Law 13/2003 declares as invalid the Law 25/1997. Law 13/2003 also declares as invalid all Ordinances and Laws which were declared invalid in Law 25/1997.
On 2 November 2020, the Government of Indonesia promulgated the applicability of Law of the Republic of Indonesia Number 11 of 2020 concerning Job Creation (Law 11/2020) since the date of promulgation. In article 81 of Law 11/2020, several provisions in Law 13/2003 were amended, deleted, and new provisions were established.
On Thursday, 25 November 2021, the Constitutional Court of the Republic of Indonesia issued decision Number 91/PUU-XVIII/2020 regarding the formal review of Law Number 11 of 2020 concerning Job Creation against the 1945 Constitution of the Republic of Indonesia. In its decision, the CC of RI ordered the legislators to make improvements to Law Number 11 of 2020 within a period of no longer than 2 (two) years after the decision of the Constitutional Court was pronounced and if within this time period no improvements are made then Law Number 11 of 2020 will become completely unconstitutional permanently.
On 30 December 2022, the Government of Indonesia promulgated the Government Regulation in Lieu of Law of the Republic of Indonesia Number 2 of 2022 concerning Job Creation (Perpu 2/2022) which is effective since the date of promulgation. Perpu 2/2022 states that Law Number 11 of 2020 concerning Job Creation does not apply. The contents of Perpu 2/2022, especially in the field of labour, are almost entirely the same as Law 11/2020.
On 31 March 2023, the Government of Indonesia promulgated Law of the Republic of Indonesia Number 6 of 2023 concerning the stipulation of Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation which is in effect since its promulgation.