Abstract
This paper examines the evolution of the Indonesian industrial relations system and labour welfare in the New Order period, giving special attention to labour policies and unrest in the 1980s and early 1990s. The tightly controlled industrial relations system which emerged after 1965 is contrasted with the labour activism of the Sukarno era. It is argued that the greater de facto freedoms granted to industrial labour in recent years are an inevitable outcome of growing political openness, concentration of industrial labour around Jakarta and the vulnerability of new industries to domestic and international criticism of labour conditions. It is also contended that intensified labour action is unlikely to bring about a general improvement in worker welfare, although it can overcome some of the worst abuses of labour laws.
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