Indonesian Political, Business & Finance News

MoM: Enforcing rulings remains main challenge in industrial relations disputes

| Source: ANTARA_ID Translated from Indonesian | Legal
MoM: Enforcing rulings remains main challenge in industrial relations disputes
Image: ANTARA_ID

The Ministry of Manpower (Kemnaker) has stated that the implementation or execution of decisions that have attained permanent legal force remains the greatest challenge in resolving industrial relations disputes in Indonesia.

The Director of Industrial Relations Dispute Settlement (PPHI) at the Ministry of Manpower, Arnando J.P. Siregar, revealed that various industrial relations dispute cases still face hurdles at the execution stage, even when workers have won lawsuits up to the cassation level.

“The pinnacle of a case brought to court is not the decision itself, but the implementation of that decision, the execution,” Arnando stated during the BIG Strategic Forum 2026 discussion in Jakarta on Tuesday.

According to him, the issue of executing decisions presents an even greater challenge than the trial process itself.

He cited examples of cases that obtained legally binding decisions years ago but have yet to be executed to date.

Arnando noted that this situation can occur due to various factors, ranging from difficulties in identifying company assets to changes in a company’s condition after a decision is issued.

“When a company’s status is unclear—where it is de facto non-existent but de jure still active and registered as a business entity—it becomes difficult to execute,” he said.

He added that the challenge becomes increasingly complex when cases involve companies with intricate corporate structures or cross-jurisdictional links.

During the event, Arnando also explained that the resolution of industrial relations disputes in Indonesia prioritises the principle of deliberation through bipartite mechanisms before proceeding to mediation or court stages.

According to him, this approach is taken because the resolution of labour disputes cannot be viewed solely from a legal perspective, but must also consider economic, social, and cultural aspects.

Arnando noted that the Ministry of Manpower continues to encourage the creation of harmonious and productive industrial relations by strengthening dialogue between workers and employers.

He remarked that future industrial relations must be transformative, ensuring that all parties share the responsibility of maintaining business continuity while simultaneously protecting workers’ rights.

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