The Resurgence of the Labor Party: Prospects for Influencing Indonesia Labor Policy and the Controversial Job Creation Law

The Labor Party (Partai Buruh/PB) has recently re-emerged on the political scene in anticipation of the next presidential election. Its revival has sparked discussions about whether it can effectively influence the tone of the next government on labour policy, particularly in addressing the contentious job creation law.

To understand the potential influence of PB, examining the historical context of labour politics in Indonesia is crucial. Trade unions have long played a significant role in the country’s socio-political landscape. The push for labour rights and fair employment conditions has often resulted in confrontations between labour groups and the government.

Law No. 11 of 2011 on Job Creation was enacted in October 2020, which was later repealed and replaced by Law No. 6 of 2023 to address the Constitutional Court Decision about the formality requirements of Law No. 11 of 2020, aimed to streamline regulations and boost economic growth but triggered nationwide protests, with trade unions vehemently opposing the law. Critics argue it undermines workers’ rights, job security, and environmental protections. Consequently, the PB revival aligns with the ongoing labour discontent and provides an opportunity to address these grievances.

The resurgence of the PB can be attributed to several factors, including growing labour dissatisfaction with the current government’s handling of labour issues and a perceived need for a dedicated political party to represent workers’ interests. The ILP’s re-emergence is a response to this demand and has the potential to reshape labour politics.

The PB may influence the upcoming elected government’s labour policy. The degree of influence, however, will depend on several key factors:

1. Electoral Success: To impact labour policy, the PB must secure significant representation in the legislative body. This would require effective campaigning, alliances with other like-minded parties, and garnering support from the labour force.
2. Policy Formulation: Once it garner significant votes to sit in the Parliament or becoming a part of the elected coalition Government, the PB must articulate clear and comprehensive labour policies that address workers’ concerns while promoting economic growth. The PB can propose amendments to the job creation law to address specific labour concerns while maintaining the government’s economic objectives. Balancing these interests will be crucial to gaining broader support.
3. Negotiation and Compromise: The PB may need to negotiate and compromise with other political parties to pass labour-related legislation. The PB should demonstrate a willingness to compromise and engage constructively to garner support. Building political support will be essential to push the party agenda effectively.
4. Public Awareness: The PB must maintain public awareness of labour issues to pressure the government into implementing favourable labour policies. This could involve organizing protests, strikes, or other forms of peaceful activism.

The resurgence of the PB presents an opportunity for labour interests to gain a stronger political voice in the country. However, its ability to influence labour policy and reform the contentious job creation law will depend on factors such as electoral success, policy formulation, negotiation skills, and public support. Suppose the PB can effectively navigate these challenges. In that case, it could reshape labour politics in Indonesia and influence the upcoming elected government’s stance on labour policy and job creation law.