Indonesia - Labor



In 1999, the labor force numbered 99 million people. In that year, 45% were engaged in agriculture, 16% in industry, and 39% in services. Unemployment figures for 2001 stood at 8%, but actual unemployment likely was much higher, and about half of the workforce is underemployed.

The law protects the right to form and join unions to all workers regardless of political affiliation. Ten or more workers can unionize, and thousands of unions have been registered. However, a union can be banned by the government if its foundation goes against the constitution. Sometimes there are clashes between different unions within one workplace. With the exception of civil servants, workers have the right to strike after mandatory mediation. Collective bargaining is utilized, but most contracts do not provide workers with more than the government minimum standards

Children under age 15 are prohibited from working more than four hours per day, but this limit is exceeded by millions of child laborers. In addition, children are not legally permitted to work in hazardous occupations, but child labor laws are not enforced. There is no national minimum wage. Wages are set by area wage councils who estimate the amount a worker needs to earn to provide for his or her basic needs. In 2002, the minimum wage in Jakarta was $39 per month. However, many employers do not pay this minimum wage. The 40-hour workweek and a seven to eight-hour day are established by law throughout Indonesia, although these standards are not regularly enforced.

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James Hilton
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Dec 16, 2010 @ 10:22 pm
What are the laws about people over the age of 60 working in Indonesia?

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