TRI-SOLVE: Tripartite Mechanism to Resolve Industrial Disputes , Safeguard Labor, and Investment in Indonesia

Abstract

In recent years, termination of employment has become a major issue in industrial relations disputes in Indonesia. This is a serious concern due to its direct impact on the national economy, such as rising unemployment. These disputes occur across various sectors, including between investment companies and their workforce. In such situations, the government plays crucial role in resolving conflicts, particularly through the tripartite mechanism. This mechanism is regulated in Article 11 paragraph 2 of Law No. 25 of 2007 on Investment, and its procedural details are outlined in Law No. 2 of 2004 on the Settlement of Industrial Relations Disputes. This mechanism, involving representatives from government, employers, and workers, is effective in minimizing workplace conflicts that could potentially disrupt business operations, especially in foreign investment companies that significantly influence Indonesia's investment climate. By implementing this mechanism, Indonesia can enhance its reputation as a safe and competitive destination for investors. This research aims to analyze the stages and implementation of the tripartite mechanism in resolving industrial relations disputes, using PT Yihong Novatex Indonesia as a case study. This research use doctrinal legal research method. The results show the stages in the tripartite mechanism that can be used in resolving industrial relations.