Ridwan Max Sijabat, Jakarta – The labor movement, which evolved from communities of railway and plantation workers during Dutch colonialism, has enjoyed highs and suffered lows along with the changing administrations in the country.
Today, despite progress in the passage of regulations, it has experienced a letdown in achievement of its aims despite increased freedom for workers to express their grievances in the reform era.
The resignation of Soeharto in May 1998, bringing an end to his militaristic regime and the suppression of labor activism, ushered in enormous changes in politics, the economy, security and human rights. Change in the labor system was highlighted by the ratification of ILO Convention No. 87 on freedom of association and the reform of oppressive labor laws. There are 87 labor unions registered with the government and at least three more laws protecting their rights.
The labor movement began in the early 1900s through the formation of workers' associations to oppose oppressive policies of the Dutch colonial government against workers in the railway industry in Java and Sumatra and in rubber and oil palm plantations in North Sumatra.
It gained official recognition from the ruling regime in the 1940s, when many labor unions were set up to protect workers in the railway company and state plantations, and peasants in the agriculture sector. The presence of labor unions prompted founding president Sukarno to issue Law No. 14/1948, which adopted the International May Day as national labor day in Indonesia (it was annulled after the abortive coup allegedly spearheaded by the Indonesian Communist Party, or PKI, in 1965).
Labor unions could not do much to improve workers' social welfare because almost all were affiliated with political parties, and workers were vulnerable to abuse and intimidation because of their political struggle. The temporary constitution, which was dropped in 1959, stipulated workers' rights but no laws were made to enforce them.
The nation's return that year to the 1945 Constitution created uncertainty because labor unions were divided among nationalist parties, Islamic parties and the PKI.
Despite the poor conditions in almost all sectors, labor unions succeeded in achieving government ratification of several ILO Conventions, especially ILO Convention No. 12/1965 on collective bargaining and equal treatment in workplaces. The government also passed Law No. 12/1957 on dismissals, requiring employers to provide severance pay.
When Soeharto effectively came to power in 1965, all parties and labor unions that supported the PKI were liquidated and the remaining labor unions were eventually reorganized into the Confederation of All-Indonesian Workers Union (KSPSI) on Feb. 20, 1973, in the government's attempt to ensure control.
Workers had no freedom to unionize and underground labor unions, including the Indonesian Prosperity Labor Union established by Mochtar Pakpahan and the Independent Labor Union chaired by the late C. J. Princen, faced persecution when they emerged in the 1980s.
In the 1990s, Dita Indah Sari and Budiman Sudjatmiko represented workers in industrial disputes in West and East Java through their People's Democratic Party (PRD). Dita was later jailed in Tangerang.
Mochtar also was jailed while Princen was tortured several times for their representation of workers in labor disputes. Security forces were often deployed by businesses to intervene in industrial action.
The Soeharto regime's repressive approach to the labor movement drew fierce criticism from the international community, with the United States imposing sanctions on Indonesia's export commodities in 1995.
Soeharto's exit gave the labor movement the freedom to fight the worst forms of employment and discrimination. However, despite the ratification of many ILO conventions and prolabor laws, labor conditions have remained poor following the prolonged economic crisis that hit the country in 1997. The majority of workers employed in the formal sector are still paid in accordance with regional minimum wages.
Recent months have brought a new rallying cry for labor unions. The government's decision to revise the 2003 Labor Law to encourage foreign investment has met opposition from the workers, who have condemned it as detracting from their rights and benefits.