Employment Law in Indonesia

In general, the vast majority of Indonesian workers are not unionized.  This may in part be attributable to the fact that the Indonesian employment standards legislation provides very generous benefits and requires Labour Court approval for all employee terminations except where the employee accepts the termination by written agreement or resignation.

Any group of at least 10 employees can register a union.  One or more unions representing more than 50% of all employees have the right to negotiate a Collective Labour Agreement which is binding on all employees.  Bargaining in Indonesia takes place at the company level as industry level negotiations are not well developed.