ABSTRACT
The effects of globalization on labour are clearly reflected in Indonesia, a country struggling to find a niche within the international division of labour as a production site for labour-intensive manufactures. Indonesia's greater integration with the world economy was spurred by the fall of international oil prices in the 1980s. The framework of industrial relations in Indonesia is in many ways the product of political upheavals taking place after September 1965, essentially the culmination of a protracted struggle between the Indonesian Communist Party and the military leadership for political dominance. If the rise of industrial action in the 1990s created domestic pressure for labour reform, the Indonesian government has also been forced to contend, from time to time, with increasing international criticism of its labour policies. Globalization and Indonesia's increased integration with the world economy have had contradictory effects on Indonesian labour.
