The Making of a New Social Contract: Labor Law in Indonesia after Reformasi

This paper discusses the development of labor law in Indonesia after the 1998 reformasi. The end of the authoritarian regime and the subsequent introduction of democratic institutions in the country have opened up new spaces to restructure labor relations. The government promulgated a set of new labor laws that has brought tremendous changes to the employment system and the system of labor disputes settlement. In the face of the challenges these changes have created, labor unions are using alternative means to defend their members’ interests. This paper shows how labor law reform has set a new social contract between the government, employer associations, and the labor movement.