POLITICAL SYSTEM
General Information
Indonesia is a unitary presidential republic.
The supreme legislative body is the bicameral People's Consultative Assembly (MPR).
Head of state and government – President Prabowo Subianto, elected during elections in February 2024 with 58% of the vote.
Vice President – Gibran Rakabuming Raka (since 2024). The country operates a multi-party system.
Stimulating "green" energy and the digital economy is one of the key policy directions.
Constitutional System
The Republic of Indonesia is a unitary state consisting of 38 provinces.
The current Constitution was adopted in 1945, with amendments from 1999-2002, which enshrined democratic principles, decentralization of power, and guarantees of human rights.
The People's Consultative Assembly (MPR) includes two chambers:
- Council of Representatives (DPR): 575 deputies elected through a proportional system for a five-year term.
- Regional Representative Council (DPD): 136 members representing provinces. Each province elects 4 representatives, with the exception of special administrative regions (for example, Jakarta), where the number of DPD members may be fewer.
Labor Relations
The foundation of labor legislation in the Republic of Indonesia is Law No. 13/2003 "On Labor", which regulates the rights and obligations of employees and employers. According to the latest amendments of 2023, the minimum wage is reviewed annually taking into account inflation and economic growth. In 2025, the minimum wage varies by region: from 2,3 mil. rupiah (approximately 150 dollars) in rural areas to 5,2 mil. rupiah (approximately 340 dollars) in Jakarta.
The working week is 40 hours: 7 hours per day with a 6-day week or 8 hours with a 5-day week. Overtime work is paid at double the rate. An employer is obliged to provide annual paid leave:
- 12 working days after a year of continuous work;
- 14 working days after 6 years of service.
Additionally, employees have the right to childcare leave (3 days) and leave for family circumstances (2 days per year).
In 2023, measures were adopted to adapt labor legislation to the digital economy, including:
- Regulation of remote work with guaranteed payment for internet and equipment;
- Worker retraining programs within the framework of the National Human Resource Development Strategy.
Social protection of workers is ensured through a mandatory insurance system (BPJS Ketenagakerjaan), covering medical expenses, pensions, and compensation for accidents.
Trade Unions
State regulation of trade union activities in Indonesia is carried out through the Ministry of Labor and the National Council on Labor Issues. According to 2023 data, more than 5,3 thousand trade unions are registered in the country, uniting approximately 4,2 mil. workers. The largest associations are the Confederation of Indonesian Trade Unions (KSPI) and the Confederation of Indonesian Workers (KSBSI).
Trade unions actively participate in social dialogue, including negotiations on raising the minimum wage and improving working conditions. According to Law No. 21/2000, workers have the right to create trade unions without prior permission, as well as to conduct strikes after notifying the employer 14 days in advance.
The Confederation of Indonesian Trade Unions (KSPI), founded in 2003, represents the interests of more than 2 mil. members and is part of the International Trade Union Confederation (ITUC). KSBSI, created in 1992, unites workers in key sectors, including the oil and gas sector and the textile industry.