THE IMPLEMENTATION OF SOCIAL JUSTICE IN THE INDUSTRIAL RELATION MODEL OF (A PERSPECTIVE ANALYSIS BASED ON INDUSTRIAL RELATION REGULATIONS AND PRACTICE IN INDONESIA)

Gratianus Prikasetya Lecturer of President University Lawschool and Head of President Legal Clinic [email protected] / [email protected]

Abstract

Industrial relation is one of important aspect in daily business practice, but sometimes it become the source of problem in business. The problem often be triggered by a gap between employer and employee interest. Employer business and profit oriented interest sometimes does not meet up with the employees paradigm that commonly work for their survival. The Industrial Relation practice in certain contry is always be related with the industrial relation model that internalised in manpower regulation of certain country. Today‟s there are two types of industrial relation model which commonly used, such as contractualist industrial relation model which relatively consists of individual value and corporatist industrial relation model which usually consist of collectivism value. Each industrial relation model is very dependent with the national public policy. This article will explain the industrial relation model which used and internalised in Indonesia based on the ideology and national identity of Indonesia esepcially social justice value. In regards to explain this article, secondary data such as regulation and theories regarding industrial relation and social justice value that become one of basic principle of Indonesia.

Keywords: industrial relation, individualism, collectivism, government, social justice

Abstrak

Hubungan Industrial adalah salah satu aspek penting dalam praktik bisnis sehari-hari, namun terkadang hal tersebut juga menjadi sumber permasalahan dalam bisnis. Permasalahan tersebut seringkali dipicu oleh kesenjangan antara kepentingan Pemberi Kerja dan Pekerja. Kepentingan Pemberi Kerja yang diutamakan untuk meraih keuntungan dalam bisnis terkadang tidak sesuai dengan sudut pandang Pekerja yang sebagian besar bertujuan untuk bertahan hidup. Praktik Hubungan Industrial di negara tertentu selalu berkaitan dengan model Hubungan Industrial yang terinternalisasi dalam regulasi mengenai ketenagakerjaan di suatu negara. Dewasa ini terdapat dua model Hubungan Industrial yang lazim digunakan yakni contractualist industrial relation model terdiri dari nilai individualism dan corporatist industrial relation model yang biasanya terdiri atas nilai kolektvisme. Masing-masing model tersebut sangat bergantung kepada kepentingan nasional dari suatu negara. Artikel ini menjelasakan model Hubungan Industrial yang digunakan dan terinternalisasi di Indonesia berdasarkan ideologi dan identitas nasional Indonesia khususnya nilai social justice. Data Sekunder seperti peraturan perundang-undangan dan teori-teori terkait Hubungan Industrial dan Social Justice akan digunakan untuk membahas persoalan yang terdapat dalam Artikel ini.

Kata Kunci: Hubungan Industrial, Pekerja, Pemberi Kerja, Pemerintah, Social Justice

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A. Overview as industrial relation.1 All rights and The development in business field obligations which attach to employer and brings effect to the number of the needs of employee shall be regulated under certain manpower. The increased number of contract that consented by both employer manpower need is conservatively in line and employee. According to Article 1 No with the number of industrial sector even 14 Manpower Law, employment contract today that kind of assumption maybe is not is the agreement between employee and relevant anymore with today‟s employer which consists of terms of phenomenon. Beside the rapid employment, rights, and obligations of the development of industrial sector, the issues parties.2 This legal relationship between of manpower still become the most parties acknowledged as Industrial important thing to discuss. In the Relation. Theoretically Industrial Relation developing country the manpower issue model in certain country is depended with often appear to surface and sometimes get the ideology of the country. Ideology of a special attention both from the internal and country usually can be pictured by the external party. We may say that regulation, especially the regulation related government and people are part of internal industrial relation. party, and external party usually consist of According to Hamid Attamimi, institution or body that does not Pancasila3 is the grundnorm of Republic of established by that country institution Indonesia. Grundnorm is the fundamental (such as International Labor Organization norm or basic norm that become the or abbreviated as “ILO”). The common highest source for all regulations in manpower issues usually related with the Indonesia. It is not possible if there is a disharmony between employer interest and regulation in Indonesia that does not employee interest. The gap between those follow and meet up the principle as stated interests caused by differences in in . One of the regulation that interpretation regarding certain regulation follows those principles is Manpower which regulates rights and obligations for 1 Indonesia, Law Concerning Manpower, Law No the parties. According to Indonesian Law 13 Year 2003, NS No. 39 Year 2003, add NS no 4279, Art. 1 No 13 Year 2003 Concerning Manpower 2 Ibid, Article 1 No 14 3 (or abbreviated as “Manpower Law”) the Pancasila is terminology to mention the fundamental principle of Indonesia that consists of contractual relationship between employer five guiding principle for all Indonesian life such as believe in God, nationalism, humanity, democracy, and employee has to be mentioned clearly and social justice.

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Law. Manpower Law of Indonesia is the Pancasila and The Constitution of source of industrial relation model in Republic of Indonesia Year 1945 which Indonesia. According to Aloysius means all of the aspect related manpower Uwiyono, there are two models of matter in Indonesia must be described the industrial relation, the first one is value and principle as stated in Pancasila contractualist industrial relation model and or especially social justice principle.6 corporatist industrial relation model.4 Those two industrial relation models can B. Industrial Relation based on be distinguished by the type of norms that Indonesian Law compose the Manpower Law of certain The legal certainty, especially country. The intervention of government regarding the manpower aspect in in industrial relation is the simplest way to Indonesia can be seen from Manpower classify the industrial relation model in a Law of Indonesia. Constitutionally, this country. It can be assumed that more regulation is the source for all manpower intervention of government in industrial practice in Indonesia, including industrial relation will bring the country to relation. The Industrial Relation in corporatist industrial relation model.5 Indonesia is implemented based on Theoretically the industrial relation model Manpower Law of Indonesia. Industrial depends on the norm that composes the Relation is the stakeholders relationship manpower law. In the manpower law at which related in good or services least there are autonomous norm and production process in a company7. heterenomous norm. Autonomous norm is Commonly, the stakeholders that related in the type of norm that regulate the legal a company consists of:8 relation between the parties and a. Employer or shareholders which daily heterenomous norm is the type of norm representated by the management; that regulates the legal relation between b. Employee or labour and labour union; government and legal subject in a certain c. Supplier; country (at this case employer and d. User Company; employee). As regulated in Article 2 e. People arround the company; and Indonesian Manpower Law, the industrial f. Government. relation shall be implemented based on 6 Op. Cit, Art 2 Law Concerning Manpower 4 Aloysius Uwiyono, Modul Perspektif Hubungan 7 Abdul Khakim, Dasar-Dasar Hukum Industrial Menyongsong Visi Indonesia 2025, Ketenagakerjaan di Indonesia, (Bandung: Citra (Jakarta; Universitas Indonesia, 2016), hlm. 7 Aditya, 2009), Page 43. 5 Ibid 8 Ibid

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According to Article 1 No 16 Manpower the employer to employee, whose amount Law of Indonesia,, industrial relation is is determined and paid according to defined as a system of relations that take employment contract, a deal, or and shape among actors in the process of regulations, including allowances for the producing goods and/or services, which employees and their family for a job and consist of employers, employees, and the or service that has been performed or will government, which is based on the values be performed.12 Worker‟s wage is very of Pancasila and the Indonesian related with order and instruction aspect Constitution Year 1945.9 The industrial because to be determined as order or relation itself can be considered based on instruction in an industrial relation, that employment relation. The Indonesian order has to be given and followed as the Manpower Law defines employment replacement service. Every order that relation as a relationship between given to the employee has to be stated employer and employee based on before on employment contract as the employment contract, which deals with consent of the parties. Parents‟s order to aspects relating to the job, the worker‟s their children cannot be determined as wage, and orders and instructions.10 From industrial relation, because the order is not that regulation it can be seen that there are intended as a job and based on social norm some elements in industrial relation, such that kind of order is the right of parents as: and the obligation of the children to do a. Job; parent‟s order. b. Worker‟s wage; and c. Order and instruction. C. Contractualist Industrial Relation Job is a specific duty, role, or function11 Model and Corporatist Industrial that has to be done by employee. Relation Model Practically, the type of job in industrial According to Rencana relation practice in Indonesia, has been Pembangunan Jangka Panjang (“Long mentioned in Employement Contract. Term Development Planning”) Republic Worker‟s wage is the right of employee or of Indonesia especially in sub section of worker that is received and expressed in district development, there is one the form of money as remuneration from important point that describes the direction which should be reached by Manpower 9 Op. Cit, Art 1 no 16 Law Concerning Manpower 10 Ibid, Art 1 No 16. 11https://www.merriamwebster.com/dictionary/jo 12 Op. Cit, Article 1 No 30 Law Concerning b, accessed on August 2018 Manpower.

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Law of Indonesia. The point is creating a Kosmidou mentioned, country risk may be conducive climate for investors including prompted by a number of country specific improvement of cooperation between factors or events such as political events, countries through economic cooperation. economic factors, and social factor.15 As a From the investor perspective, there are Third World Country, Indonesia is still some considered factors to invest their needs foreign capital, because of some capital in certain country, such as reasons such as: the number of job minimum labour cost, near the raw opportunity, the development of import material, new market, royalty from the substitution industrial good for foreign transfer of technology, spare part sales, exchange efficeny, pushing the and other incentives.13 Those factors are development of non oil and gas industries, always in line and becoming the basis of the development of rural area, and transfer investment climate in Indonesia and the of technology.16 most important motive for investors is to In line with the recent Long Term gain profit as much as they can. Before, Development Planning of Indonesia and invest their capital into certain place, the the needs of capital in Indonesia, the investors usually will take asessment public policy regarding manpower matter period to make sure the certainty and profit is the element or factor that can assure that they may get in the future. The legal certainty for the investor that plan to assesment is not only done by measure the invest their capital in Indonesia. Basically, business aspect, but also will considere the investors will be brave to invest their based on the contry risk. According Panras capital in Indonesia if the government of Nagy, Country risk is the exposure to a Indonesia itself, able to assure the loss in cross-border lending caused by investors related the country risk. events in a particular country which are, at According to Jamaes Kallan, the most least to some extent, under the control of effective incentive to attract foreign the government but definitely not under investment activities is that government the control of a private enterprise or must be able to enforce the law and asure individual.14 On another hand, K the security of the country. Globalisation plays the important role in every business

13 Erman Rajagukguk, Modul Hukum Investasi dan practice in Indonesia. The globalisation Pembangunan, (Jakarta; Universitas Indonesia, 2009), Page 55 15 K. Kosmidou , et.al, Country Risk Evaluation, 14 Panras Nagy, “Country Risk,” Journal of Banking Method and Application, (USA: Springer, 2008), and Finance, (London: Euromoney Publications, Page 7. 1985), page 195 16 Erman Rajagukguk, Op. Cit, hlm 60.

5 and the business practice cannot be clauses in the employment contract which separated as two different elements. That consisted of rights and obligation of the is why the globalisation is become the part party (employer and employee). The rights of business practice itself. The and obligations on the contract are globalisation pushes the government to use depended on the parties will as regulated market center approach than The Centered in Indonesian Manpower Law and The Plan Economic.17 Market center approach Indonesian Law of Contract. Article 50 affects the role of government in practice Indonesian Manpower Law allows the is less than the role of labour union or parties to consent the right and obligation employee. Almost all rights and for an industrial relation based on a obligations in an industrial relation may be contract.20 This regulation legally brings consented by the employer and employee the party to follow the principle of or labour union themselves. At this point, Indonesian Law of Contract which is the globalisation brings Indonesia to use regulated under Indonesian .21 market center approach and relatively On another side, corporatist industrial chooses the contractual industrial relation relation model is the industrial relation model. model which relatively relies on the role of According to Uwiyono, there are government as the regulator of industrial two types of industrial relation model relation. As the opposite of contractualist which commonly implemented, they are industrial relation model, the corporatist contratualist industrial relation model and industrial relation model commonly can be corporatist industrial relation model18. described by these four points such as the Contractualist industrual relation model is high number of government intervention, the industrial relation model which can be the limitation of the freedom of union and described by these four principle, first less the right of collectively negotiation, and of government intervention, second the the government also plays the rule as the freedom of union is highly supported, third active actor.22 the collective right to negotiate is absolute, Those industrial relation models and fourth the government is only act as are consisted of two biggest norms which referee (mediator)19. The less of 20 Op. Cit, Art 50 Law Concerning Manpower government intervention can seen from the 21 According to article 1320 Indonesian Civil Code, there are four conditions that make a contract legally bind. First is consent of the parties, second 17 Aloysius Uwiyono, Op. Cit. is kecakapan, third is related a thing, and fourth is 18 Ibid lawful matter. 19 Ibid 22 Aloysius Uwiyono, Op. Cit

6 theoretically known in Manpower Law freely determine their right and obligation such as autonomous norm and by themselves without breaking the terms heteronomous norm. Autonomous norm and condition such as classified as are legal provisions in manpower made by heteronomous norm. The contractual the parties involved in an industrial relation between employer and employee, relation, the relation between the employer theoretically is a private relatonship but and the worker/laborer and the relation that is not really private relationship between the employer and the labor because the parties are bonded by union23. Heteronomous norm is the heteronomus norm. Manpower clauses made by third party As comparison, in practice outside the parties that bound in an Transnational Company that are offshoring industrial relation24. The legal standing for production to Asian countries are entering heteronomous norm on Industrial Relation national settings with little labour law of Indonesia is Art 59 Paragraph (1) enforcement. Since Transnational Manpower Law of Indonesia. It is institution for worker‟s rights have not yet regulated that the employement contract developed to balance the offshoring trend (autonomous norm) may be made by and the weak enforcement of Asian labour following the clauses such as 1) work to be laws, the worker‟s right situation can be performed and completed at one go or characterised as governance without work which is temporary by nature; 2) government with Transnational Company, work whose completion is estimated at a unions, NGO‟s governing industrial period of time which is not too long and no relations.26 This statement is in line with longer than three years; 3) seasonal work; the principle of contractualist industrial and 4) work that is related to a new relation model which hands the industrial product, a new activity, or an additional relation affair directly to the parties which product that is still in the experimental are employee or union and employer. That stage or try-out phase.25 The autonomous kind of condition will affect the decreasing norm is reflected on Art 50 Manpower role of government in industrial relation Law of Indonesia which gives the and the increasing of the influence of authority to the employer and employee to

26 Niklas Egels – Zanden, Translating Competing 23 Aloysius Uwiyono, et al., The principles of labor Models of Industrial Relation Local Bargaining Act, Jakarta, Rajawali Pers, 2014), page. 7-8. versus Global Rules in the Swedish Clean Clothes 24 Ibid Campaign, (Sweden: Center for Business in Society 25 Op. Cit, Article 59 paragraph (1) Law Concerning School of Business, Economics, and Law Goteborg Manpower University, 2016), page. 5

7 transnational cooperations in general. In ideology of Indonesian people. Regarding this way, Transnational cooperation has the theory of regulation as mentioned by gained and governments lost in strength in Hans Kelsen, Pancasila is located on the industrial relation.27 A popular argument top of Indonesian regulation hierarchy. supporting this thesis is that the collectivist According to Hamid Attamimi which used ideology of unions has become outdated as Kelsen Theory, Pancasila is can be treated work has become individualised, roles and as grundnorm or basic norm. grundnorm is identities are being recast around a concept to denote the order or rule that individual service production, and shaped forms an underlying basis for a legal more by one‟s role as a consumer than a system.30 This Kelsen‟s theory is producer and this trend resulting from the commonly known as The Pure Theory of increasingly transnational organisation of Law. The Pure Theory describes the production is the decentralisation of positive law as an objectively valid order industrial relation.28 By this and states that this interpretation is decentralisation of industrial relation it can possible only under the condition that a be assumed that the principle in industrial basic norm is presupposed. The Pure relation model is contractualist industrial Theory, thereby characterizes this relation model. To face the gap between interpretation as possible, not necessary, public sector and private sector role, there and presents the objective vaidity of is a bargaining industrial relation model as positive law only as conditional namely known as Bargaining Model. The conditioned by the presupposed basic Bargaining Model is representative of the norm.31 The hierarchy in this theory is traditional national tripartite industrial used to describe the legal positivism which relations system involving negotiations start from basic norm where all other and collective bargaining between firms norms are related to each other by either and unions with the state as a more or less being inferior norms, when the one is passive actor in the background.29 compared to the other, or superior norms.32 Based on that theory, it can be defined that D. Social Justice Principle Pancasila is the fundamental 30 principle of Indonesia and also the http://manupatra.com/roundup/330/Articles/Artic le%201.pdf accessed on August 2018 31 Hans Kelse, Pure Theory of Law, page 217-218, 27 Ibid. 32 28 Ibid. https://en.m.wikipedia.org/wiki/Pure_Theory_of_ 29 Ibid. Law

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Pancasila is the highest source for the On another side, individualism means a norm that regulated in Indonesia. value which reflects that each legal subject One of the substance that consisted has their own interest which got or in Pancasila which related with Manpower fullfilled from interaction with another. Law especially industrial relation model is According to Filsafat Antinomi Theory, Social Justice. Social justice is the 5th the harmonisation of those two values will principle that written in Pancasila beside produce a new value that is peace. Peace the religious, humanity, unity, and can be produced, if the collectivism and representative principles. In Bahasa individualism values are harmonized each Indonesia social justice is translated as other. In politic sector, if individualism is “keadilan sosial”. To understand about the preferred than collectivism, so the result meaning of Social Justice, it can separated will be tend to be capitalism value and on into two terminlogies, social and justice or other side if collectivism is preffered than keadilan and sosial in Bahasa Indonesia. individualism will tend to result socialism The meaning of keadilan is taken from value.33 This harmonise situation between arabic word “adl” which means giving the collectivism and individualism is the equal part. It is the same with the meaning nearest description of what Social Justice of justice based on merriam webster Principle in Indonesia.34 dictionary which defined justice as the According to Mohammad Hatta quality of being just, impartial, or fair and speech on July 13th 1945, there are some social means tending to form cooperative suggestions to assure Indonesia will able and interdependent relationships with to keep the social justice for all others. From that definitions, social Indonesian, such as firstly that Indonesian justice may interpreted as the fairness which implemented in an interdependent 34 According to Purnadi Purbacaraka and Soerjono relationship on a society. (Find another Soekanto, the systematical of value will appear as certain set or couple which each set consists meaning of social justice). Social Justice values that tension each other. The tension means a condition when a value presses another but both Principle, brings the society indirectly to of them do not abolish each and other. The be more collectivism value society than concrete example for this case is a set of value which consist of freedom value and discipline individualism society. Collectivism can be value. Both of this value can be said pressing each other because in a freedom condition there is also defined as a value which reflects an restrictions as the reflection of discipline value. undistrubed peace situation in a society by This restriction is the manifestation that an individual cannot life freely without limit but fulfillment of individual interest which outside the restriction, individual has also freedom, so the human life will no longer does not disturb other individual interest. characterized as totally discipline.

9 lives by helping each other, secondly each Manpower Law of Indonesia and followed citizen has the right to get the job and get by technical regulations. The Manpower the proper living, thirdly the national Law of Indonesia regulates the basic economic is arranged as collective principles of industrial relation in business, fifthly land is owned by the Indonesia. The harmonisation of people, sixthly the individual asset may collectivism and individualism is can be not be the tools for oppressing other, and seen in Manpower Law of Indonesia. seventhly the poor is taken care by the Individualism value as part of autonomous government.35 Those principle as norm is reflected by autonomous mentioned by Mohammad Hatta, finally employment contract which may be made brought others founding father to consider between the parties in an industrial about the idea of social justice deeper. The relation. As mentioned before, the example economic development that will be done of autonomous norm can be seen from by Indonesia will always consider the Article 50 Manpower Law of Indonesia common needs so the public development which allows the parties to consent the which in line with the principle of social right and obligation for an industrial justice may be realized and implemented relation based on a contract.36 A contract for the people of Indonesia. Social equality which defined by the regulation is also act as the important aspect in social employment contract. The Employment justice value. Through the social equality it Contract in Indonesia may be made based is hoped that social welfare may be on the basic principle of law of contract achieved on Indonesia. which regulated under 3rd Book of Indonesian Civil Code, especially Article E. Social Justice Principle in 1320 Indonesian Civil Code. The freedom Manpower Sector of contract which means allow the party to As the part of basic norm or consent their own rights and obligations is fundamental norm in Indonesia, Social the reflection of individualism principle Justice has to be reflected in every inside Manpower Law of Indonesia. That Indonesian regulation, including the kind of freedom is cannot be implemented manpower sector regulation. The most as an unlimited freedom of contract. The general regulation for manpower sector is employment contract in Indonesia has to follow the rules as regulated in other

35 Muhammad Hatta Speech July 13th 1945 as written in Prisma Jurnal Pemikiran Sosial dan Ekonomi. 36 Op. Cit, Art 50 Law Concerning Manpower.

10 technical regulation for Manpower matter 252.70.38 It means that, on 2018 the such as The Minimum Wages Decree. The employer is not allowed to pay the Employer and Employee are not allowed employee under that amount. This kind of to consent regarding employee wage regulation is the example of heterenomous without considering that technical norm which still activelly prevailed in regulation. Every year, The Indonesian Indonesia. The parties are not be allowed Government assigned the employee‟s to create an employment contract which minimum wages decree to adjust and determines the employee‟s wages under assure the fullfillment of employee‟s the amount regulated in Minimum Wages needs. According to Art 1 No 1 The Decree of Jakarta. The freedom of contract Ministry of Manpower and Transmigration principle is restricted with this kind of of Republic of Indonesia Decree No.7 heteronomous norm and all of employment Year 2013 (The Minimum Wages Decree), contract which does not follow the rule minimum wages is the minimum monthly will be determined as null and void. wage which consisted of basic wages To assure the economic including fixed allowances which assigned development through regular increase of by governor to secure it.37 This Minister of employee‟s wages, every year the Manpower and Transmigration Decree is government determines the minimum only giving the authority to the provincial wages regulation. The annual increasing of government to determine the minimum employee‟s wage is counted based on the wages. As the example, The Governor of calculation of the price of basic needs in Jakarta Municipal Province assigned The Indonesia. As the example, the increasing Governor Decree No 182 Year 2017 of minimum wages for employee on DKI Concerning The DKI Jakarta Province Jakarta Province is calculated based on Minimum Wages for 2018 (“Minimum 3.72% national inflation, 4.99% of Wages Decree of Jakarta”). Article 1 economic development, and the increasing Minimum Wages Decree of Jakarta of minimum wages as determined by The determines that the minimum wages for Minister of Manpower is 8.71%.39 Based employee in Jakarta Province for 2018 is on that calculation the minimum wages for IDR.3,648,035.82 or around USD employees in DKI Jakarta Province in 2018 is higher than the 2017 which

38 Ibid. 37 DKI Jakarta Province, Governor Decree 39https://finance.detik.com/berita-ekonomi- Concerning Minimum Wages, Governor Decree No. bisnis/d-3709931/ump-jakarta-tahun-depan-rp-36- 182 Year 2017. juta-begini-hitungannya

11 amount was IDR.3,355,750.00 or around manpower sector is also plays the role as USD 230.18. institution to keep the nation against social The rule of government to assign inequality. the minimum wages at this case reflects the principle of heteronomous norm which F. Conclusion symbolise the collectivism value in As a country with Social Justice Principle, Indonesian Industrial Relation. This it is important for Indonesia to keep the heteronomous norm is very useful to spirit on the nation life, especially on the equalize the the Indonesian income and to manpower sector. The manpower sector is realize the social welfare for Indonesian.40 one of the key factor of national economic Social welfare can be manifestated by the development, because all of business field implementation of social justice principle always be related with the manpower as stated in Pancasila. There will be no aspect including industrial relation matter. social welfare if the social inequality still Industrial relation is The rights and exist in a nation. The sociologist, Goran obligations of employee and employer are Therborn defined that social inequality is very depends to the industrial relation an inequality and unfair condition as the model as mentioned before industrial oposite of social equality. 41 According to relation is a system of relations that take him there are three dimention of social shape among actors in the process of inequality related a human position as producing goods and/or services, which biologist creature, as individual, and social consist of employers, employees, and the actor. The social inequality in biologist government, which is based on the values creature dimension is related with vital of Pancasila and the Indonesian equality, in individual dimension is related Constitution Year 1945.42 If the industrial with existential inequality, and in social relation model is tend to be more actor dimension is related with resource contractual model, the employee and inequality. The social justice principle employer are more freely to determine especially as implemented in Indonesian their right and obligation. Beside that the government will only come as the silent

40 Realizing the social welfare is one of the the party that does not have power to intervene purpose of Republic of Indonesia as mentioned in the preambule of The Constitution of Republic of the industrial relation. On another side, if Indonesia. the industrial relation is tend to be more 41 Airlangga Pribadi, “Masih Relevankah Memperjuangkan Cita-Cita Keadilan Sosial”, Prisma Jurnal Pemikiran Sosial Ekonomi, (Jakarta: LP3ES, 2018), Page 89 42 Op. Cit, Art 1 no 16 Law Concerning Manpower.

12 corporatist industrial relation model, the keep the implementation of social justice employee and employer in an industrial and to avoid the social inequality in the relation do not has the power to determine society. On DKI Jakarta Province the their right and obligation by themselves. minimum wages for employee in 2018 is The government as active actor is the party IDR.3,648,035.82 or around USD 252.70 who has the legit power and authority to and calculated based on the basic needs of determine everything related industrial people on Jakarta. This kind of regulation relation. Indonesia as social justice (minimum wages regulation) is the principle country, is still applying a system example of government intervention in that use both of industrial relation model. industrial relation sector. The government The Employment Contract such as role is still very important in industrial regulated under Art 59 Paragraph (1) relation. As we know that today Manpower Law is the contractual globalization era brings the business actor industrial relation stripe that showed by to do the most efficient thing in their Indonesian Manpower system to follow business and sometimes do not consider with the development of business. Even the right and obligation of the employee. though The Manpower Law of Indonesia At this kind of situation government has to has given the authority to the party to appear to provide security and institution consent the right and obligation for for the people and to create the social industrial relation matter, the government welfare for all, not only for certain group. of Indonesia still regulates the restriction, The bargaining industrial relation model as limitation, and other norms which strictly offered by some theories is good to be has to be followed by the business considered. This bargaining industrial stakeholders especially the subject of relation can be place as the win-win industrial relation. The restriction and solution for between the capitalist business limitation that regulated by the needs and the collectivist spirit. On this is related the bargaining industrial relation model, the clause that may to be made in employment role of government must be provided contract such as the maximum period of strongly by without disturbing the private contract, the type of job, and another terms area between employer and employee as and conditions. One of the easiest example long as the right and obligation of the that can be seen is the regulation related party do not break the norm and regulation minimum wages of employees that such regulated before. The tripartite annually published by the government to institution shall be activated anymore as a

13 mainstream institution to decide issues Purbacaraka, Purnadi dan Soerjono especially industrial relation issues Soekanto. Ikhtisar Antinomi Nilai between employer and employee. Aliran Filsafat Sebagai Landasan Filsafat Hukum, Cet.Kedua.Jakarta: References Rajawali Pers, 1991. Books and Articles Rajagukguk, Erman. Modul Hukum Kelsen, Hans. Pure Theory of Law Investasi dan Pembangunan, Jakarta; (Reprint Edition), Berkeley: Universitas Indonesia, 2009. University of California Press, 2005. Uwiyono, Aloysius. Modul Perspektif Khakim, Abdul. Dasar-Dasar Hukum Hubungan Industrial Menyongsong Ketenagakerjaan di Visi Indonesia 2025. Jakarta; Indonesia.Bandung: Citra Aditya, Universitas Indonesia, 2016. 2009. Uwiyono, Aloysius.et al., The principles of Kosmidou, K et.al. Country Risk labor Act, Jakarta: Rajawali Pers, 2014. Evaluation, Method and Application,. USA: Springer, 2008. Regulations Nagy, Panras. “Country Risk”. Journal of Indonesia, Law Concerning Manpower, Banking and Finance. London: Law No 13 Year 2003, NS No. 39 Euromoney Publications, 1985. Year 2003, add NS no 4279. DKI Jakarta Province, Governor Decree Niklas Egels – Zanden, Translating Concerning Minimum Wages, Competing Models of Industrial Governor Decree No. 182 Year Relation Local Bargaining versus 2017. Global Rules in the Swedish Clean Clothes Campaign. Sweden: Center Internet for Business in Society School of https://finance.detik.com/berita-ekonomi- Business, Economics, and Law bisnis/d-3709931/ump-jakarta-tahun- Goteborg University, 2016. depan-rp-36-juta-begini-hitungannya Pribadi, Airlangga.“Masih Relevankah http://manupatra.com/roundup/330/Article Memperjuangkan Cita-Cita Keadilan s/Article%201.pdf accessed on Sosial”. Prisma Jurnal Pemikiran August 2018 Sosial Ekonomi.Jakarta: LP3ES, https://www.merriam 2018. webster.com/dictionary, accessed on August 2018

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