Section 7. Worker Rights
a. Freedom of Association and the Right to Collective Bargaining
The law, with restrictions, provides for the rights of workers to join independent unions, conduct legal strikes, and bargain collectively. The law prohibits antiunion discrimination.
Workers in the private sector have, in law, broad rights of association and formed and joined unions of their choice without previous authorization or excessive requirements. The law places restrictions on organizing among public-sector workers. Civil servants may only form employee associations with limitations on certain rights, such as the right to strike. Employees of state-owned enterprises (SOEs) may form unions, but because the government treats most SOEs as essential national interest sites, their right to strike is limited.
The law stipulates that 10 or more workers have the right to form a union, with membership open to all workers, regardless of political affiliation, religion, ethnicity, or gender. The Ministry of Manpower records, rather than approves, the formation of a union, federation, or confederation and provides it with a registration number.
The law allows the government to petition the courts to dissolve a union if it conflicts with the constitution or the national ideology of Pancasila, which encompasses the principles of belief in one God, justice, unity, democracy, and social justice. Authorities may compel a union to dissolve if its leaders or members, in the name of the union, commit crimes against the security of the state and receive a minimum of five years in prison. Once a union is dissolved, its leaders and members may not form another union for at least three years. The International Labor Organization (ILO) noted its concern that dissolving a union could be disproportionate to the seriousness of the violation.
The law allows workers’ organizations that register with the government to conclude legally binding collective labor agreements (CLAs) with employers and to exercise other trade union functions. The law includes some restrictions on collective bargaining, including a requirement that a union or unions represent more than 50 percent of the company workforce to negotiate a CLA. Workers and employers have 30 days to conclude a CLA before negotiations move to binding arbitration. CLAs have a two-year lifespan that the parties may extend for one year. Unions noted that the law allows employers to delay the negotiation of CLAs with few legal repercussions.
The right to strike is legally restricted. By law workers must give written notification to authorities and to the employer seven days in advance for a strike to be legal. The notification must specify the start and end time of the strike, venue for the action, and reasons for the strike, and it must include signatures of the chairperson and secretary of the striking union. Before striking, workers must engage in mediation with the employer and then proceed to a government mediator or risk having the strike declared illegal. In the case of an illegal strike, an employer may make two written requests within a period of seven days for workers to return. Workers who do not return to work after these requests are considered to have resigned.
All strikes at “enterprises that cater to the interests of the general public or at enterprises whose activities would endanger the safety of human life if discontinued” are deemed illegal. Regulations do not specify the types of enterprises affected, leaving this determination to the government’s discretion. Presidential and ministerial decrees enable companies or industrial areas to request assistance from police and the military in the event of disruption of or threat to “national vital objects” in their jurisdiction. The ILO has observed that the definition of “national vital objects” was expanding and consequently imposing overly broad restrictions on legitimate trade union activity, including in export processing zones. Regulations also classify strikes as illegal if they are “not as a result of failed negotiations.” Unions alleged that the government’s recent increase of the number of “national vital objects” was done to justify the use of security forces to restrict strike activity.
The government did not always effectively enforce provisions of the law protecting freedom of association or preventing antiunion discrimination. Antiunion discrimination cases moved excessively slowly through the court system. Bribery and judicial corruption in workers’ disputes continued, and unions claimed that courts rarely decided cases in the workers’ favor, even in cases in which the Ministry of Manpower recommended in favor of the workers. While dismissed workers sometimes received severance pay or other compensation, they were rarely reinstated. Authorities used some legal provisions to prosecute trade unionists for striking, such as the crime of “instigating a punishable act” or committing “unpleasant acts,” which criminalized a broad range of conduct.
Penalties for criminal violations of the law protecting freedom of association and the right to enter into collective labor agreements include a prison sentence and fines, and they were generally sufficient to deter violations. Local Ministry of Manpower offices were responsible for enforcement, which was particularly difficult in export-promotion zones. Enforcement of CLAs varied based on the capacity and interest of individual regional governments.
Several common practices undermined freedom of association. Antiunion intimidation most often took the form of termination, transfer, or unjustified criminal charges. Companies often sued union leaders for losses suffered in strikes. Unions also alleged that employers commonly reassigned labor leaders deemed to be problematic. Labor activists claimed that companies orchestrated the formation of multiple unions, including “yellow” (employer-controlled) unions, to weaken legitimate unions. Some employers threatened employees who contacted union organizers.
Many strikes were unsanctioned or “wildcat” strikes that broke out after a failure to settle long-term grievances or when an employer refused to recognize a union. Unions reported that employers also used the bureaucratic process required for a legal strike to obstruct unions’ right to strike. Unions noted that employers’ delays in negotiating CLAs contributed to strike activity and legal measures taken against union members in the event of a failed CLA negotiation. The ILO cited the lack of a strong collective bargaining culture as a contributing factor to many labor disputes.
The increasing use of contract labor directly affected unions’ right to organize and bargain collectively. Under the law, contract labor is to be used only for work that is “temporary in nature;” a business may outsource work only when such work is an auxiliary activity of the business. Government regulations limit employers’ ability to outsource jobs to five categories of workers (cleaning services, security, transportation, catering, and work related to the mining industry). Nevertheless, many employers violated these provisions, sometimes with the assistance of local offices of the Ministry of Manpower. For example, unions reported that hotel owners often attempted to make use of the cleaning services exemption to justify terminating unionized hotel staff employed in housekeeping and outsourcing those services.
b. Prohibition of Forced or Compulsory Labor
The law prohibits all forms of forced or compulsory labor, prescribing penalties of imprisonment and a fine, which were not sufficient to deter violations. The government did not effectively enforce the law.
By law the National Social Security Administration enrolls migrant workers and their families in the national social security program, enables authorities to prosecute suspects involved in illegal recruitment and placement of workers, and limits the role of private recruitment and placement agencies by revoking their authority to obtain travel documents for migrant workers. Government agencies may suspend the licenses of recruitment agencies for coercive or deceptive recruitment practices and contract signings, sending migrant workers to an unauthorized destination country, document forgery, underage recruitment, illegal fees (such as requesting several months of workers’ salaries), and other violations.
The government continued its moratorium on sending domestic workers to certain countries where its citizens had been subjected to forced labor. Some observers noted this moratorium resulted in an increasing number of workers seeking the services of illegal brokers and placement agencies to facilitate their travel, increasing their vulnerability to human trafficking.
There were credible reports that forced labor occurred, including forced and compulsory labor by children (see section 7.c.). Forced labor occurred in domestic servitude and in the mining, manufacturing, fishing, fish processing, construction, and plantation agriculture sectors.
Migrant workers often accumulated significant debt from both local and overseas labor recruitment agencies, making them vulnerable to debt bondage. Some companies used debt bondage, withholding of documents, and threats of violence to keep migrants in forced labor.
Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.
c. Prohibition of Child Labor and Minimum Age for Employment
The law and regulations prohibit child labor and cover all children between the ages of five and 12, regardless of the hours worked; working children ages 13 to 14 who worked more than 15 hours per week; and working children ages 15 to 17 who worked more than 40 hours per week. The law prohibits the worst forms of child labor, as defined by the ILO. The ILO reported that the “Reducing Child Labor as part of Aspiring Family” program removed 105,956 children from child labor from 2008 to 2018. The law does not extend to the informal economy where most child labor takes place, however. Companies which legally employ children for the purpose of artistic performances and similar activities are required to keep records of their employment. Companies which legally employ children for other purposes are not required to keep such records.
Penalties for violating minimum age provisions were not sufficient to deter violations.
The government did not effectively enforce the law prohibiting the worst forms of child labor. The government did not enforce all laws prohibiting the worst forms of child labor, since it did not effectively investigate, prosecute, or sanction persons who involve children in the production, sale, or trafficking of illicit drugs.
Child labor commonly occurred in domestic service, rural agriculture, light industry, manufacturing, and fishing. The worst forms of child labor occurred in commercial sexual exploitation, including the production of child pornography (also see section 6, Children); illicit activities, including forced begging and the production, sale, and trafficking of drugs; and in fishing and domestic work.
According to a 2018 National Statistics Agency report, approximately 7 percent of children ages 10 to 17 were working because of poverty.
Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings and the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .
d. Discrimination with Respect to Employment and Occupation
The law prohibits discrimination in employment and occupation, but there are no laws prohibiting discrimination based on sexual orientation or gender identity, national origin or citizenship, age, language, HIV-positive status, or having other communicable diseases. A Central Java police officer was fired in December 2018 because of his sexual orientation. His challenge of the firing before the province’s Administrative Court of Semarang was rejected.
According to NGOs, antidiscrimination protections were not always observed by employers or the government. The Ministry of Manpower, the Women’s Empowerment and Child Protection Agency, the Ministry of Home Affairs, and the National Development Planning Board worked in partnership to reduce gender inequality, including supporting equal employee opportunity task forces at the provincial, district, and municipal levels. The penalties prescribed under the law did not have a strong deterrent effect. Penalties range from written warnings to revocation of commercial and business licenses.
Women, migrant workers, and persons with disabilities commonly faced discrimination in employment and were often only hired for lower-status jobs. Migrant workers were often subjected to police extortion and societal discrimination. Transgender individuals faced discrimination in employment, as did persons with HIV/AIDS.
Some activists said that in manufacturing, employers relegated women to lower-paying, lower-level jobs. Jobs traditionally associated with women continued to be significantly undervalued and unregulated. The law does not provide domestic workers with a minimum wage, health insurance, freedom of association, an eight-hour workday, a weekly day of rest, vacation time, or safe work conditions. NGOs reported abusive treatment and discriminatory behavior continued to be rampant.
Some female police and military recruits were subjected to invasive virginity testing as a condition of employment, including the use of digital pelvic probes that many activists claimed were painful, degrading, discriminatory, and not medically accurate.
e. Acceptable Conditions of Work
Minimum wages varied throughout the country, since provincial governors had authority to set a minimum wage floor and district heads had authority to set a higher rate. Minimum wages were above the official poverty line.
Government regulations allow employers in certain sectors, including small and medium enterprises and labor-intensive industries such as textiles, an exemption from minimum wage requirements.
The overtime rate for work in excess of a 40-hour workweek was 1.5 times the normal hourly rate for the first hour and twice the hourly rate for additional overtime, with a maximum of three hours of overtime per day and a maximum of 14 hours per week.
The law requires employers to provide a safe and healthy workplace and to treat workers with dignity. Workers may remove themselves from situations that endanger health or safety without jeopardy to their employment.
Local officials from the Ministry of Manpower are responsible for enforcing regulations on minimum wage and hours of work as well as health and safety standards. Penalties for violations include criminal sanctions, fines, and imprisonment (for violation of minimum wage law), which were generally sufficient to deter violations. Government enforcement remained inadequate, particularly at smaller companies, and supervision of labor standards continued to be weak. Provincial and local-level officials often did not have the technical expertise needed to enforce labor law effectively. The number of inspectors was inadequate to enforce compliance in a country of 250 million inhabitants, although the government substantially increased its labor inspectorate funding to IDR 143 billion ($10.2 million) with specific funds for enforcing child labor regulations. The ILO noted that low compensation for inspectors was a barrier to the creation of a professional inspectorate.
Authorities enforced labor regulations, including minimum wage regulations, only for the estimated 42 percent of workers in the formal sector. Workers in the informal sector, estimated to number approximately 74 million as of February 2018, did not receive the same protections or benefits as workers in the formal sector, in part because they had no legal work contract that labor inspectors could examine.
Plantation agriculture workers often worked long hours without government-mandated health insurance benefits. They lacked proper safety gear and training in pesticide safety. Most plantation operators paid workers by the volume of crop harvested, which resulted in some workers receiving less than minimum wage and working extended hours to meet volume targets.
Unions continued to urge the government, especially the Ministry of Manpower, to do more to address the country’s poor worker safety record and lax enforcement of health and safety regulations, particularly in the construction sector. There were, however, no reliable national estimates for workplace deaths or injuries. On June 21, approximately 25 female workers (and five of their children) died in a fire at a lighter factory in Binjai District, Langkat Regency, in North Sumatra. The victims were trapped in the locked factory. The owner and the factory manager faced prison sentences of up to five years for failing to meet workplace safety requirements.