A Challenge for Business? Developments in Indonesian Trade Unionism after Soeharto

Abstract

This chapter discusses debates on unionism and business from a labour movement perspective. It begins by briefly outlining developments in unionism in New Order Indonesia and sketching changes in the regulatory environment and union activity in the first five years after the fall of Soeharto, before turning to the central question regarding the extent to which ‘militant’ unionism has been a challenge to business. It argues that, while the new industrial relations climate does indeed present challenges for employers, those challenges lie in developing effective mechanisms through which they can work with unions rather than in the spectre of a strong and militant labour movement bent on the destruction of business.