Labour protection policy in a third world economy: The case of Indonesia

Over the last two decades the Indonesian government has formulated several pieces of legislation intended to provide better protection for workers. These laws include employment protection programs and regulations over industrial relations, thus establishing firmer standards of employment. With the enactment of these laws, it might seem that labour is now considered the most important element in the development process, for the legislation aims to secure and protect the rights of workers. Importantly, with these laws the government has redefined security and protection such that it now embraces workers in the informal sector of the economy. But do these policies meet international welfare standards? This paper describes labour regulations to protect workers' rights and secure decent working conditions, assessing the strengths and weaknesses of the regulatory and policy measures taken to enhance worker welfare.