Industrial relations involve the interactions between government, workers, unions, employers, and employer associations, and is applied through company regulations, collective bargaining agreements, labour legislation and industrial relations dispute settlement institutions.
The Indonesian Manpower Act states that the government creates policy, provides services, oversees and enforces legislation.
Workers and unions perform their work, act in a democratic manner, develop their skills and expertise, promote the business of their companies, and strive to improve the welfare of their families. Employers and employer organisations seek to create partnerships, develop their businesses, and provide welfare to workers in an open, democratic and fair manner.
MANPOWER ACT NO. 13 OF 2003, ARTS. 102 103 [UU KETENAGAKERJAAN NO. 13 TAHUN 2003, PASAL 102 – 103]