Promoting Good Industrial Relations in the Oil and Gas Industries in Indonesia

Working paper 254

This working paper was prepared as a background paper for the national tripartite meeting for promoting good industrial relations and social dialogue in the oil and gas industries in Indonesia in 2007. The working paper found that in the oil and gas industry in Indonesia, tripartite and bipartite social dialogue is still in the process of developing, because tripartite social dialogue does not exist in the oil and gas industries. The use of tripartite social dialogue is limited to national and regional tripartite institutions, for example, in determining minimum wages and discussing various labour-related issues. Bipartite social dialogue has been developed as a mechanism for resolving labour disputes. Similarly, social dialogue in the oil and gas industries is not well developed and needs to be strengthened, particularly in the areas of capacity for negotiations and dialogue at all levels in the industries. Social dialogue in the oil and gas industries is essential in preventing occurrences of serious industrial disputes and promoting sustainable economic development.