groups, and preparation of implementing regulations, the Parliament amended it to postpone
implementation until 1 October 2000 (Surowidjojo, 1999).
Formerly employers faced 3 months imprisonment or a fine of up to 100,000 rupiah
for noncompliance with labor legislation. The new labor bill provides for fines of 50
million rupiah and a maximum sentence of 6 months in jail (House passes labor bill,
1997). However, such penalties have seldom proven to be deterrents and appeals for
employers to treat workers better still continue. For example, the governor of Jakarta has
called for changes and has quoted research findings that six factors lead to disputes
between employers and employees: the minimum wage, workers’ demands for pay
increases, overtime fees, doing overtime, incompatible worker–employer relationships,
and lack of freedom to pursue career or education (Employers told to treat workers better,
1997).