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Uncategorized
24Dec
Implementing the SMK3 System: A Guide to Occupational Health and Safety in Indonesia
In Indonesia, one industrial accident was all it took to shift a company’s internal culture. After a factory fire injured several workers, the management realized that reactive fixes were no longer enough. They then set out to fully implement SMK3 (Sistem Manajemen Keselamatan dan Kesehatan Kerja)—an occupational health and safety system required by law. The […]
23Dec
Post-Accident Procedures and Workers’ Compensation Claims under BPJS Ketenagakerjaan
When a workplace accident occurs, the true strength of an organization is revealed—not just in how it responds medically, but in how it fulfills its legal and moral obligations. In Indonesia, the process of post-accident management is tightly linked with BPJS Ketenagakerjaan, the national social security agency that protects workers through compensation and rehabilitation schemes. […]
22Dec
Mental Health and Wellbeing in the Indonesian Workplace: Creating a Supportive Environment
In recent years, conversations around workplace wellbeing in Indonesia have shifted from being a “nice-to-have” to a legal and strategic necessity. Employers are increasingly recognizing that mental health is not just about individual resilience—it’s a reflection of organizational culture. Consider the case of a major financial firm in Jakarta that introduced an Employee Assistance Program […]
21Dec
Employer Liability in Indonesia: Workplace Safety and Accident Reporting (SMK3)
Workplace safety is not merely a compliance matter—it is a cornerstone of responsible business practice. In Indonesia, ensuring a safe and healthy work environment is not optional; it’s a legal and moral duty. Employers must implement the Occupational Safety and Health Management System (SMK3), a structured program that prevents accidents, promotes employee well-being, and upholds […]
20Dec
Collective Bargaining Agreements (PKB) in Indonesia: Negotiation Strategies for Employers
In Indonesia’s evolving labor environment, collaboration between employers and employees remains a cornerstone of industrial stability. One of the most crucial instruments shaping this relationship is the Collective Bargaining Agreement (Perjanjian Kerja Bersama – PKB), a formal contract negotiated between a company and its labor union to regulate employment terms beyond the statutory minimum. Understanding […]
19Dec
The Indonesian Industrial Relations Court (PHI): Process and Strategies for Handling Disputes
In Indonesia’s fast-evolving labor landscape, workplace conflicts are inevitable — from disagreements over terminations to wage disputes. When internal resolutions fail, cases often escalate to the Pengadilan Hubungan Industrial (PHI), or Industrial Relations Court. Understanding how this process works and how to approach it strategically is crucial for both local and foreign employers operating in […]
18Dec
The Role of Unions and Collective Labor Agreements in Indonesia
When foreign investors enter Indonesia’s dynamic labor market, they often focus on contracts and compliance — yet one major player is frequently underestimated: labor unions. In a country where industrial relations emphasize balance and dialogue, understanding unions and collective labor agreements (CLAs) is vital for maintaining stable, lawful, and productive workplaces. Understanding Unions and Collective […]
17Dec
Exit Interviews in Indonesia: Process and Key Questions to Ask
When an employee decides to leave, many companies rush through the formalities — clearance forms, laptop returns, final pay. Yet one powerful step is often overlooked: the exit interview. For HR professionals and business leaders in Indonesia, this process offers valuable insights into workplace culture, management effectiveness, and employee satisfaction. Purpose and Concept An exit […]
16Dec
Mutual Termination Agreements (PHK Sepakat) in Indonesia: Process and Best Practices
Introduction In Indonesia’s dynamic employment landscape, businesses and employees may sometimes reach a mutual understanding to end their relationship amicably. This is known as a Mutual Termination Agreement (Perjanjian Pemutusan Hubungan Kerja Secara Sepakat) — a legal and ethical way to conclude employment when both sides agree. When managed properly, it prevents disputes and preserves […]
15Dec
Calculating Severance Pay (Pesangon) in Indonesia: Formulas, Components, and Examples
Introduction When a company must part ways with an employee, the process can be emotionally and financially delicate—especially for foreign employers navigating Indonesian labor law. Severance pay, known locally as pesangon, is a core component of fair termination and compliance. Understanding its calculation helps prevent disputes and ensures lawful separation. Key Concepts: Severance, Long Service […]
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