Indonesian Political, Business & Finance News

Manpower Ministry backs stronger industrial relations governance in SOEs

| Source: ANTARA_ID Translated from Indonesian | Regulation
Manpower Ministry backs stronger industrial relations governance in SOEs
Image: ANTARA_ID

Jakarta (ANTARA) - The Ministry of Manpower is supporting the strengthening of industrial relations governance within state-owned enterprises (SOEs).

Indah Anggoro Putri, Director General of Industrial Relations Development and Workers’ Social Security (PHI-JSK) at the ministry, said in Jakarta on Monday that this step is necessary to ensure that the corporate restructuring and consolidation (streamlining) agenda proceeds whilst still taking into account the fulfilment of workers’ rights and the continuity of harmonious industrial relations.

Furthermore, Indah said the move to align manpower policy with the SOE restructuring agenda refers to Presidential Instruction (Inpres) Number 7 of 2026 on the Acceleration of the Programme for the Restructuring of State-Owned Enterprises and/or State-Owned Enterprise Subsidiaries.

“Through this presidential instruction, the Ministry of Manpower, together with related ministries and agencies, is tasked with planning, implementing, monitoring, and mitigating every potential obstacle in the organisational restructuring process,” she said.

According to Indah, the ministry has a strategic role in ensuring that the SOE restructuring process continues to take account of manpower aspects.

This aligns with the government’s agenda to restructure and consolidate SOEs in order to improve efficiency and the competitiveness of the national economy.

As a follow-up, Indah said the ministry, together with the SOE Regulatory Body (BP BUMN), has formulated a commitment to uphold the principle of “no one left behind”, which emphasises that business efficiency and consolidation must continue to take into account the fate of workers and the fulfilment of decent work standards.

“The ‘no one left behind’ principle is not only about preventing layoffs, but also ensuring that workers’ rights remain protected and that no unfair treatment occurs during the organisational restructuring process,” she said.

In addition, Indah reminded that the SOE integration and consolidation process needs to be carried out carefully, particularly in the aspect of industrial relations.

“We want to make sure that the leadership responsible for managing human resources and legal compliance has adequate competence in the field of industrial relations,” said Indah.

To support the creation of harmonious industrial relations, the Ministry of Manpower has offered four strategic approaches to SOEs, namely certainty, engagement, fairness, and strong governance.

Indah said these four approaches are expected to strengthen communication between management and workers, build early-warning systems for potential disputes, and ensure that every manpower issue can be resolved constructively.

“With strengthened industrial relations governance, SOE restructuring is expected not only to produce more efficient and competitive organisations, but also to continue guaranteeing the protection of workers’ rights and creating harmonious and sustainable industrial relations,” she said.

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