Law No. 13 of 2003 on Manpower (Indonesian: UU Nomor 13 Tahun 2003) is basis of Indoneseian employment Law. it was signed by Megawati Soekarno Putri on March 23, 2003 in Jakarta in the State Gazette of the Republic of Indonesia Year 2003 No. 39. This law refines the previous rules on employment that are no longer in line with developments in Indonesia’s employment development.
The basis and principles of employment law are regulated in Article 2 until 4 of Law No. 13 of 2003 which reads: Article 2 “Employment development based on Pancasila and the 1945 Constitution of the Republic of Indonesia”.
The objectives of the employment law are regulated in article 4 of Law No. 13 of 2003 that reads: Employment development aims at:
- empower and utilize labor optimally and humanely;
- Achieve equal distribution of employment opportunities and the provision of manpower in accordance with the needs of national and regional development;
- Provide protection to the workforce in realizing prosperity;
- Improve the welfare of the workforce and their families. Employment development is organized on the principle of integration with through functional coordination across central and regional sectors means the principle of employment development basically in accordance with the principle of national development, especially the principle of pancasila democracy and fair and equitable principles;
- Employment Agencies.
Law No. 13 of 2003 mentioned that there are two institutions that regulate the manpower. These institutions are bipartite and tripartite institutions.
Bipartite is a forum of communication and consultation on matters relating to industrial relations in one company whose members consist of employers and unions / labor unions that are difficult to record institutions responsible in the field of employment or workers / laborers.
The provisions concerning the procedures for the formation and composition of bipartite cooperation institutions shall be regulated by a Ministerial Decree.
The legal basis for the establishment of a Bipartite Cooperation Institution in the Company in accordance with the Decree of the Minister of Manpower No. 328 of 1986 (Indonesian SK Menteri Tenaga Kerja No. 328 tahun 1986) by condition of:
- Conduct counseling to participants of “Target Group”
- Undertake evaluation of participants’ understanding;
- The initiative of the participants (entrepreneurs, SP / Workers);
- All parties have an interest and need
- Directing the participants into 3 (three) interest groups
- Group preparation formation
- Group preparation of membership composition / stewardship
- Bipartite Cooperation Group programming group
- Deferring the work and making it as a mutual agreement for the establishment of Bipartite Cooperation Institution (LK) in the Company
- Submitting the Minutes of Establishment to the head of the workforce to obtain registration
In particular, the composition of the Bipartite Cooperation Agreement has at least 6 (six) persons comprising. They are 3 (three) representatives of workers Unions, 3 (three) representatives of employers with the following composition:
- one chairman concurrently member
- 1 vice chairman concurrently member
- a secretary concurrently member, and at least 3 members
Bipartite Institution Duties:
- Accommodating, responding and solving employment problems;
- Avoid at the earliest possible misunderstandings and dissent in consultative matters of mutual interest;
- Supporting and encouraging the creation of work discipline, calmness and peace of employment, enthusiasm of work and business manpower;
- Enforce the existence and role of labor agencies in the company related to employment matters;
- Implement the principles of Pancasila leadership.
The tripartite Institution is a forum for communication, consultation and deliberation on labor issues whose members consist of employers’ organizations, trade unions and government organizations.
The tripartite Institution provides consideration, advice and opinion to the government and related parties in policy formulation and problem solving of employment.
The Tripartite Cooperation Institution consists of:
- National Tripartite Cooperation Institution, Province and Regency / Municipality; and
- National Tripartite Sectoral, Provincial and District / City Tripartite Cooperation Institutions.
Membership of the Tripartite Institution consists of elements of government, employers’ organizations, and trade unions.
The organizational structure and organization of the Tripartite Institution shall be governed detaily by a Government Regulation. Based on Government Regulation No.8 of 2005 ( on (Indonesian: Peraturan Pemerintah Nomor 8 Tahun 2005) on Working Procedures and Organizational Structure of Tripartite Institution states that the organizational structure of tripartite cooperation institution is:
Structure of National Tripartite Cooperation Institution
- Chairman concurrently as member, held by Minister;
- 3 Vice Chairman concurrently members, each of which is represented by members representing Government elements coming from Government agencies responsible in the employment field of employers’ organizations, and trade unions / labor unions;
- Secretary concurrently member, held by members representing the elements of the Government derived from the Government agency responsible in the man power field;and
- Some members according to needs.
Composition of the Provincial Tripartite Cooperation Agencies
- Chairman concurrently member, held by Governor
- 3 Vice Chairman concurrently members, each held by members representing elements of the Government derived from the provincial unit of the provincial apparatus unit responsible for manpower affairs, employers’ organizations and trade unions / labor unions
- Secretary concurrently member, held by member representing element of Government coming from unit of organization of area apparatus of Province responsible for manpower field
- some members according to need.
Structure of Tripartite Cooperation Institution of Regency / Municipality
- Chairman concurrently member, held by Regent / Mayor
- 3 (three) Vice Chairman concurrently members, each occupied by members representing elements of the Government derived from the unit of the regional apparatus of the Regency / City responsible in the field of manpower, employers’ organization and trade union / trade union
- Secretary concurrently member, held by member representing Government element coming from unit of organization of regency / municipal apparatus responsible in manpower field
- some members according to need;
Composition of Tripartite Sectoral Cooperation Agencies
- Minister as Chairman of National Tripartite for the establishment of National Tripartite Sectoral;
- Governor as the Chairman of the Provincial Tripartite for the establishment of the Provincial Tripartite LKS;and
- Regent / Mayor as Chairman of Tripartite District / City for the establishment of Tripartite Sectoral LKS District / City.
Relations and Differences between Tripartite and Bipartite Institution
The National Tripartite Institution will be a mediating institution if industrial relations issues at the bipartite level, between employers and workers, have no get agreement to settle their dispute. Bipartite is represented only by elements of employers and Labor unions, while the tripartite includes elements of government in it. Tripartite is the three basic elements that have become a legitimate institution because it refers to the provisions of legislation, while bipartite is formed in the internal management and union.