Copyright is owned by the Author of the thesis.  Permission is given for 
a copy to be downloaded by an individual for the purpose of research and 
private study only.  The thesis may not be reproduced elsewhere without 
the permission of the Author. 
 
Labour Standards under Decentralisation and 
Globalisation: The Impact of the Minimum Wage 
Policy in West Java, Indonesia 
A thesis presented in partial fulfilment of the requirements for the 
degree of 
Doctor of Philosophy 
In 
Development Studies 
at Massey University, Palmerston North, 
New Zealand. 
By 
Indra Murty Surbakti 
2005 
ABSTRACT 
This study explores the importance of the minimum wage policy in West Java, Indonesia, 
within the overall framework of development and in the face of globalisation and 
decentralisation. A holistic approach to the minimum wage policy is applied. Generally, 
the study assesses the impact of decentralized minimum wage fixing processes on 
employment and participation of trade unions. In addition, it explores whether the 
mInImUm wage policy assists workers in coping with the negative effects of 
globalisation. It also explores the link between minimum wages and decent work. 
This study reveals that while there is some evidence of employment losses due to 
increases in wage levels in West Java, it did not find conclusive evidence that minimum 
wage levels were the main factor responsible for the employment decline. It is likely that 
a combination of factors such as a decrease in global demand for Indonesian 
manufacturing products and the current macro-economic conditions in the country, are 
also responsible for the employment decline. 
This study finds that the process of minimum wage fixing at local level has a positive 
impact on trade union participation in wage bargaining. The empowerment of trade 
unions through new legislation has enabled independent trade unions to flourish, which 
allows workers to join any trade unions. Consequently, minimum wage bargaining at 
district/city level is more dynamic than the centralized system of minimum wage 
bargaining in the past. Trade unions are able to express their views on what the minimum 
wage levels should be. 
Moreover, the mInImUm wage fixing processes at local level have the potential to 
promote decent work. The minimum wage fixing processes are an alternative to wage 
bargaining and can accommodate even sectors where trade unions are least active or non­
existent. The minimum wage processes at district/city level are already established and 
11 
they are in position to expand to a wider framework of providing welfare for workers. 
However, decent work objectives will not be achieved without the full cooperation of 
both central and local governments. Under the current decentralisation process, where 
central and local government views are stil l  not in agreement, it is difficult to see how 
decent work can be applied nationally. 
Thus, the minimum wage policy and trade union development are important in the overall 
development paradigm. Both ensure the existence of a rights based approach to 
development where workers are given rights to organize as well as earn a basic l iving. 
Nevertheless, the development of trade unions in developing countries is under threat 
from flexibilisation of the workplace in which jobs have become less and less secure. The 
minimum wage policy, however, is still viable because it covers all types of workers. At 
the very least, minimum wages provide a safety net wage that can prevent real wages 
from falling. 
The writer suggests that more studies should be conducted on the extent and effectiveness 
of trade union participation in minimum wage bargaining. In addition, further studies 
should be conducted on the effect of minimum wages and trade unions on non-standard 
or flexible workers. Flexible workers, whether they are fixed-term contract and 
outsourced workers, are becoming an important part of the global labour market and 
increasingly pose a challenge to the increasingly important role of trade unions in 
developing countries. 
III 
ACKNOWLEDGMENT 
This thesis would not have come to fruition without the support and assistance of 
many people and institutions. I am greatly indebted for the guidance these people 
have provided, and for the facilities and resources given to conduct the research. 
A very special appreciation is extended to my supervisors, Professor John Overton, 
Professor Hans-liirgen Engelbrecht, and Dr. Donovan Storey for their encouragement, 
insights and guidance in conducting this research. I thank Professor Overton's 
invaluable inputs for the thesis, especially on the subjects of globalisation and 
decentralisation. I extend my appreciation to Professor Engelbrecht for his 
suggestions and feedbacks, particularly on the quantitative methodology. 1 am 
indebted to Dr. Storey for his advice in the development of, and general direction of, 
the contents of the research. 
I would like to thank all the respondents, whether they are officials of trade unions, 
government offices and managers of manufacturing firms in West Java and Jakarta for 
thei r  participation in the study and for allowing me to conduct interviews and survey 
during the fieldwork. The interactions with the above respondents have been very 
fruitful and cordial. 
I would like to thank the School of People, Environment and Planning, Massey 
University, and the World Bank in Jakarta who provided me with additional funding 
for the fieldwork. I would like to thank Statistics Indonesia, the World Bank and the 
Asian Development Bank for allowing me to participate in their survey and use some 
of their data for analysis. 
I am deeply indebted to NZODA for providing me with a scholarship to pursue this 
doctoral degree in Development Studies and to the invaluable assistance given to my 
family and I by Ms. Sue Flynn and Ms. Sylvia Hooker of the International Student 
Office, Massey University. 
IV 
Special gratitude is extended to my friends and colleagues in Statistics Indonesia, 
particularly in the large and medium industry sub-directorate, for their assistance and 
support during my fieldwork, and to the statistical offices of West Java and Jakarta for 
their assistance in providing information valuable to the fieldwork. 
I would also l ike to extend my sincere thanks to my research assistant, Mr. Supardi 
Yasmuarto and Mr. Harya Bharata, for their abundant assistance during the fieldwork 
in Indonesia. Supardi and Harya helped in collecting data and information, setting-up 
interview appointments, providing transportation to and from the fieldwork area, and 
assisting in the interviews, survey and data entry. 
I thank Robert Thompson and Christine Beach for helping proofread my thesis and 
improving the quality of my writing. Their assistance gave me valuable lessons in the 
English language. 
Last but not the least, I would like to accord a special thank you to my wife, Maria 
Jacinta Arquisola and my son, Arrnand Faris, my parents and brothers for their love, 
inspiration, and support while I was completing this study. My wife was my unofficial 
advisor and critic. Her knowledge and insights on several aspects of the thesis have 
been very helpful to me. I thank her for putting-up with my antics during the 
development of this thesis. Finally, I would like to dedicate this thesis to my son, 
Arrnand Faris, who was born prematurely in New Zealand. His strength and will to 
l ive gave me the immense motivation to finish this thesis. My son has been my 
greatest inspiration. 
v 
Table of Contents 
Abstract 
Acknowledgement 
Table of Contents 
List of Tables 
List of Figures 
List of Text Boxes 
List of Abbreviations 
Chapter I 
Introduction 
The Impact of Globalisation on Indonesian Workers 
Indonesia's Economic Crisis and Political Transformation 
Background of the Problem 
The Role of the Minimum Wage Policy in Indonesia 
Objective of the Thesis 
Overview of Theoretical Framework and Literature 
The Economic dimension of Minimum Wages 
Minimum Wages and Development 
The Politics of Minimum Wages: Democratisation and 
Decentralisation 
Industrial Relations 
Decent Work 
Overview oJ Methodology 
Background of the Study Area 
Thesis Summary 
Chapter 11 
Globalisation, Decent Work and Decentralisation 
Introduction 
Economic Globalisation 
Impact of Globalisation on Labour 
Responses to Globalisation 
The Concept of Decent Work 
Decent Work Frontier 
Decent Work as a New Paradigm 
Social Dialogue in Decent Work 
Labour Standards 
Freedom of Association and Collective Bargaining 
Re-Regulation of Labour Policies 
Linking Minimum Wages with Decent Work 
Decentralisation: A New Hope? 
Decentralisation: A Panacea for Development? 
Decentralisation of Collective Bargaining 
Democratisation and Decentralisation in Indonesia 
VI 
Page 
ii 
iv 
vi 
xi 
xiii 
xv 
xvi 
2 
3 
4 
6 
8 
9 
9 
1 0  
1 1  
1 3  
1 5  
1 5  
1 6  
1 8  
22 
23 
24 
28 
30 
32 
33 
35 
36 
39  
42 
45 
47 
49 
50 
5 1  
Decentralisation of Government Functions 
Promoting Independent Trade Union s 
The Research Question 
Chapter III 
The International Minimum Wage Debate: Theoretical 
Framework and Literature Review 
5 1  
53 
55  
Introduction 59 
The Minimum Wage Policy 59 
Administration of the Minimum Wage Policy 6 1  
The Economic Dimension of Minimum Wages 62 
The neo-classica1 model 62 
Minimum wages in developing countries: a two-sector 
model 63 
Competing economic models 66 
The impact of trade unions 68 
The Social Dimension of Minimum Wages 69 
The Political Dimension of the Minimum Wages 7 1  
The Minimum Wage Debate 77 
Evidence from Developed Countries 79 
Evidence of Support for the Minimum Wage Policy in 
Developed Countries 80 
Minimum Wages in Developing Countries 83 
Application of Minimum Wages in Developing Countries 84 
Minimum Wage Studies in Developing Countries 85 
Summary 89 
Chapter IV 
Profile of Indonesian Economic Development and 
the Labour Market 
Introduction 
Overview of Indonesian Economic Development 
Indonesia IS Development Path 
Pre and Post Crisis Economic Development 
The Role of the Manufacturing Sector 
Large and Medium Manufacturing 
Manufacturing Sector in West Java 
The Indonesian labour market 
Labour Market Conditions 
Workers in Indonesia's Manufacturing Sector 
Informal Sector Employment 
The Employment Dilemma 
Firm Closures 
Unemployment and Under Employment 
Industrial Conflicts 
Summary 
Vll 
92 
92 
93 
97 
99 
1 00 
1 03 
1 06 
1 09 
1 1 1  
1 1 3 
1 1 5  
1 1 5  
1 1 7 
1 1 8 
1 22 
Chapter V 
Wages and Minimum Wages in Indonesia 
Introduction 1 24 
Overview of Wage Differentials in Indonesia 1 24 
Wages in the Fieldwork Area 1 3 0  
Social Protection 1 3 1  
The Minimum Wage Policy 1 3 3  
Historical Overview 1 3 3  
Pre and Post Crisis Minimum Wage Levels 1 3 5  
Minimum Wages and Average Wages 1 3 8  
Determinants of Minimum Wages 142 
The Minimum Wage Setting Process 148 
Studies on the Impact of Minimum Wages in Indonesia 1 5 1  
The Importance of the Minimum Wage Policy and 
Independent Trade Unions in Indonesia 's  Development 1 57 
Summary 1 6 1  
Chapter VI 
Methodology 
Introduction 1 64 
Qualitative Analysis - The Fieldwork 1 65 
Method of Fieldwork 1 66 
Choosing the Sample for the Fieldwork 1 70 
Total Samples Obtained from the Fieldwork 1 72 
Characteristics of the Sample 1 72 
Support for the Fieldwork 1 74 
Additional Information 1 75 
Pilot Study of the Productivity and Investment Climate Survey 1 75 
Limitations to the Fieldwork 1 76 
Fieldwork Experiences 1 79 
Interview with human resource managers 1 79 
Interview with trade union officials 1 80 
Interview with government officials 1 85 
Quantitative Analysis 1 86 
Econometric Analysis 1 88 
OLS estimates of labour demand using the Productivity 
and Investment Survey (2003) data 1 89 
2SLS Estimates of inter district/city employment change 190 
Alternative Methods 1 9 1  
Other Quantitative Methods 1 94 
Data Sources 1 94 
Scope and Limitation of the Quantitative Data 1 98 
Summary of Methods 200 
Vlll 
Chapter VII 
The Impact of the Minimum Wage Policy 
Introduction 202 
Findings 203 
Levels of Minimum Wages 204 
Minimum Wages and Basic Living 206 
Misconceptions on the Meaning of Minimum Wages 209 
Respondents' Views on the Decentralised Minimum Wage Fixing 2 1 2  
Minimum Wages in 2001 and 2002 2 1 3  
The Impact of Minimum Wages 2 1 7  
Spill-over Effects of the Minimum Wage Increase 225 
Minimum Wages and Firm Closures 227 
Minimum Wages and Labour Productivity 228 
Sectoral or Industrial Minimum Wages 230 
Summary 232 
Chapter VIII 
Analysis of the Employment Impact of the Minimum Wage 
Policy Based on Secondary Data Sources 
Introduction 236 
Data Sources 238 
Characteristics of the Productivity and Investment Survey Data 240 
Minimum Wage Compliance and Trade Union Density 242 
Labour Demand 244 
OLS Estimates of Labour Demand using the Productivity and 
Investment Climate Survey Data 249 
Diagnostics 250 
Results of the Regression 25 1 
Two- Stage Least Squares (2SLS) Estimation of Relative 
Inter-district/city Employment Change 255 
Lagged Effect 260 
Firm closures 26 1 
Employment Change using Births and Deaths of firms 263 
Summary of Results 268 
Chapter IX 
The Minimum Wage Policy and Changing Industrial Relations 
in Indonesia 
Introduction 27 1 
Industrial Relations in Indonesia  272 
Trade Unions and Decent Work 275 
The New Employment Law Number 1 3 , 2003 276 
Potential Cost of the New Law 283 
Other Significant Changes in the Law 286 
Potential Impact of the New Employment Law on the Business 
Climate 287 
Law Number 2, 2004 on Industrial Relations Dispute Resolution 288 
IX  
Current Development of Trade Unions 290 
Trade Unions in Manufacturing 290 
Findings from the Fieldwork 292 
Composition of Firm-level Unions 294 
Impact of Unions 295 
Impact of Decentralised Minimum Wage Fixing on Union 
Participation 299 
'Best Practice ' Industrial Relations 302 
A Tale of Two Firms: Closures of Two Firms in the labotabek Region 303 
Other Issues Affecting Employment and Business Climate 308 
New Local Tax Provisions and other Regulations in the 
Decentralisation Process 308 
Rent Seeking 309 
Relocation 3 1 0  
Globalisation 3 1 1  
Concluding Remarks 3 1 1 
Chapter X 
Conclusions 
Summary of Major Findings 
Implications of Findings in the Research Location 
Implications outside the Research Area 
Implications for Indonesian Development 
Industrial Relations 
Decent Work 
Globalisation and Decentralisation 
Recommendations and Concluding Remarks 
Appendices 
References 
x 
3 1 6 
320 
320 
32 1 
322 
323 
323 
324 
327 
365 
LIST OF TABLES 
Page 
Table 3 . 1 Selected Emp irical Studies on the Emp loyment Imp act of the Minimum 
Wage Policy in Develop ing Countries 88 
Table 4. 1 Real GDP ( 1993 prices) of Indonesia 1 990-2000 by Industrial 
Sectors (Billion Rup iahs) 96 
Table 4 .2  Number of Workers in Indonesia by typ e of main I ndustry, 1 996-200 1 1 07 
Table 4.3 Labour Market Conditions in Indonesia, 1 997-200 1 1 1 1  
Table 4.4 Number of Workers in Large and Medium Manufacturing in Indonesia, 
1 998-2002 1 1 2 
Table 4.5 Percentage of Formal and Informal Sector Workers in Indonesia 
by Year and UrbanlRural, 1995- 1 999 1 14 
Table 4.6 Open Unemp loyment and Under Employment, 2000-2003 (000 p ersons) 1 1 8 
Table 4.7 Number of Strikes in Indonesia, 1 980-2003 1 1 9 
Table 4.8 Number of Strikes by Selected Regions, 200 1 -2004 1 20 
Table 4.9 Percent of Strikes by Economic Sector, 200 1 -2004 1 2 1  
Table 5 . 1 Real Wage Growth in Selected Economic Activities during 
The New Order Period (% per Annum) 1 25 
Table 5 .2 Ratio of Average Wage of Informal Workers to Formal Workers by 
Urban and Rural, 1 995- 1 999 1 29 
Table 5.3 Real Provincial Minimum Wage Increases (% per annum) Pre and 
Post Crisis 1 37 
Table 5 .4 Significant Emp irical Studies on the Effect of the Minimum Wage Policy in 
Indonesia 1 53 
Table 6. 1 Characteristics ofthe Samp le for Establishments 1 72 
Xl 
Table 6.2 List of Trade Unions Interviewed during the Fieldwork 1 82 
Table 7. 1 Monthly Real Minimum Wages in Selected Provinces and Districts in 
Jakarta, West Java and Banten, 1 999-2003 (000 rupiahs) 204 
Table 7.2 Effect of the Increase in Minimum Wages on Employment Lay-offs 2 1 8  
Table 7.3 Effect of Minimum Wage Increases on Future Ability of Firms to 
Hire more Workers 2 1 9  
Table 7.4 Effect of Minimum Wage Increase on Labour Productivity 229 
Table 8. 1 Distribution of Respondents by Province, I SI C  and Firm Size 24 1 
Table 8.2 Percentage of Minimum Wage Compliance, Union Density in West Java 
And Jakarta, by 2 Digit I SIC in 2002 243 
Table 8.3 Number of Vacancies by type of Permanent Workers and 2-digit ISIC 245 
Table 8.4 Number of Temporary Workers by 2-digit I SIC, 2000-2002 247 
Table 8.5 Percent of Permanent Employment Change in 2001 and 2002 by Level 
of Occupation and Area (in percent) 248 
Table 8.6 OLS Estimates of Change in Permanent and Temporary Employment: 
dependent variable /). log Eit 253 
Table 8.7 Regression Results of Relative Employment Change in West Java Using 
OLS and altern ative 2SLS Estimates - dependent variable employment /). log ei 259 
Table 8.8 Number of Establishments (New, Old, Downscaled and Closed) in the Large 
and Medium Manufacturing Sectors in Indonesia, 2000-2004 262 
Table 8.9 Percent of Employment Change in Indonesia, West Java and Jakarta 
using Births and Deaths of Manufacturing Establishments 265 
Table 8. 1 0  Percent of Employment Change in Sector 32 in Indonesia, West Java 
and Jakarta using Births and Deaths of Manufacturing Establishments 267 
Table 9. 1 Selected Comparison of old and new Employment law 278 
XlI 
LIST OF FIGURES 
Page 
Figure 2 . 1  Decent Work Frontier Model of Increasing Earnings and Employment 32 
Figure 2.2 Theoretical Basis :  Developing a Research Q uestion 57 
Figure 3 . 1  Neo-c1assical Economic Model of Employment Effect of Minimum 
Wage Legislation 63 
Figure 3 .2 Neo-Classical Economic Model of Employment Effects of Minimum 
Wages in the Formal and Informal Sector 65 
Figure 4. 1 Number of Large and Medium Manufacturing Establishments in 
Indonesia and Selected Provinces, 1 975-2000 102 
Figure 4.2 Map of West Java, Java Island, Indonesia 104 
Figure 4.3 Number of Large and Medium Manufacturing Establishments by 
two-digit ISIC in Indonesia, 1 99 1 -2000 1 06 
Fi gure 4.4 Number of Large and Medi um Manufacturing Workers in Four Major 
Provinces, 1 99 1 -2000 1 1 3 
Figure 4.5 New, Downscaled and Closed Large and Medium Manufacturing 
(Total and TGF industries) Establishments in Indonesia, 2000-2004 1 1 6 
Figure 4.6 Main Factors for Strike Incidences in Indonesia (2002) 1 22 
Figure 5 . 1  Summary of Real Wages in Indonesia, 1 996-2002 1 26 
Figure 5.2 Real Wage Index of Workers below Supervisor Level by 3 Main Sectors, 
Indonesia 1 997-2002 1 27 
Figure 5 .3  Average Monthly Wages of Manufacturing Workers below 
Supervisors Level, 1 994-2002 (US $) 129 
Figure 5 .4 Real Weekly Manufacturing Wages, Indonesia & Selected Regions, 
1 996 - 200 1 (000 rupiahs) 1 3 1  
Figure 5 .5  Nominal Monthly Wages of Large, Medium and Small Manufacturing 
Establishments and Minimum Wages, 1 993-2000 1 38 
Figure 5 .6 Average Nominal Monthly Wage of Local and Foreign investment 
Establishments and Minimum Wage in Jakarta, 1 99 1 -2000 1 39 
Xlll 
Figure 5 .7  Average Nominal Wages of Local and Foreign Investment Establishments 
and Minimum Wage in West Java, 1 99 1 -2000 140 
Figure 5 .8  Ratio of Minimum Wage to Average Wages in Large, Medium and Small 
Manufacturing Establishments, 1 993-2000 1 4 1  
Figure 5 .9 Real and Dollar Values o f  Minimum Wages i n  Indonesia and Jakarta 1 42 
Figure 5 . 1 0  Minimum Wage Setting Process according to the New Employment Law 
Number 1 3 , 2003 149 
Figure 7 . 1  Proportion of Minimum Wages to Minimum Daily Needs in Selected 
Provinces 208 
XIV 
LIST OF TEXT BOXES 
Box 5 . 1 The Minimum Subsistence Need (KHM) 
Box 7 . 1  Minimum Wage Calculation 
xv 
Page 
146 
2 1 6  
LIST OF ABBREVIATIONS 
2SLS - Two-stage least squares estimation method, also known as TSLS. 
AFT A - Asian Free Trade Area 
APINDO -Asosiasi Pengusaha Indonesia (Indonesian Employers Association) 
APEC - Asia Pacific Economic Cooperation 
ASEAN - Association of South-east Asian Nations 
Bappenas - Badan Perencanaan Pembangunan National (Indonesia's Development 
Planning Board) 
BGDC Method - Birth, growth, death and contraction of firms method to calculate 
net employment change 
BPS - Badan Pusat Statistik, I ndonesia's statistical agency. Also referred to as 
Statistics I ndonesia 
CAFTA - China and ASEAN Free Trade Area 
EJIP - East Jakarta Industrial Park 
EOI - Export Oriented I ndustrialisation 
FNPBI - Front Nasional PeIjuangan Buruh Indonesia 
FDI - Foreign Direct Investment 
FKTU - Federation of Korean Trade Unions 
FSP-LEM -Federasi Sekerikat Pekerja - Logam, Elektronik dan Mobil. 
Gasbiindo - Gabungan Serikat Buruh Industri Indonesia - Federation of I ndustrial 
Trade Unions of Indonesia 
GDP - Gross Domestic Product 
GDRP - Gross Domestic Regional Product 
GSBI - Gabungan Serikat Buruh I ndonesia 
GSP - Generalised system of Preferences 
HDI - Human Development I ndex 
ICFTU - International Confederation of Free Trade Unions 
IMF - I nternational Monetary Fund 
ILO - I nternational Labour Organisation 
IOE - International Organisation of Employers 
ISIC - International Standard Industrial Classification 
XVI 
IV - Instrumental Variables 
JABOTABEK - Jakarta, Bogor, Tangerang and Bekasi Regions 
JAMSOSTEK - Jaminan Sosial Tenaga Kerja - Workers' social security benefit 
KBN -Kawasan Berikat Nusantara (Bonded Industrial Zones) 
KEPMEN -Keputusan menteri Tenaga Kerja - Manpower Ministerial Decree 
KFM -Kebutuhan Fisik Minimum (Minimum Physical Need) 
KHM -Kebutuhan Hidup Minimum (Minimum Subsistence need) 
KSPI - Konfederasi Serikat Pekerja Indonesia (Confederation of Independent 
Workers Union of Indonesia) 
KSPSI -Konfederasi Serikat Pekerja Seluruh Indonesia 
MERCOSUR - Mercado Comun Del Sur (South American Free Trade Agreement) 
MM2000 - Bekasi Industrial Park 
MNC - Multi-national Corporations (also see TNC) 
NAFTA -North American Free Trade Area 
Nakertrans - Tenaga Kerja dan Transmigrasi (Manpower and transmigration) 
NGO - Non-governmental Organisation 
NIC -Newly Industrialised Countries 
OECD - Organisation of Economic Cooperation and Development 
OLS - Ordinary Least Squares estimation method 
PERMENAKER - Peraturan Menteri Tenaga Kerja - Manpower Minister ' s  
Regulation 
PIR - Pancasila Industrial Relations 
PJP - Pembangunan Jangka Panjang (Long Term Development) 
PPHI - Penyeleseian Perselisihan Hubungan Industrial (Industrial relations dispute 
resolution) 
REPELITA - Rencana Pembangunan Lima Tahun (Five Y ear Development Plan) 
Sakernas - Survei Tenaga Kerja Nasional- The National Labour Force Survey 
SBM - Serikat Buruh Merdeka (Freedom Workers Union of Indonesia) 
SBSI - Serikat Buruh Sejahtera Indonesia (All Indonesia Workers ' Welfare Union). 
SMERU - Smeru Research Institute 
SOBSl - Sentral Organisasi Buruh Seluruh Indonesia (All Indonesia Central 
Organization of Trade unions 
SPMI - Serikat Pekerja Metal Indonesia (Indonesian Metal Workers Union) 
XVll 
SPSI - Serikat Pekerja Seluruh Indonesian (All Indonesia Workers union). Currently 
known as KSPSI or Konfederasi Serikat Pekerja Seluruh Indonesia 
(Confederation of All Indonesia Workers Union) 
SPSI-Reformasi - Serikat Pekerja Seluruh Indonesia Reformasi (Refonned All 
Indonesia Workers Union) 
SPTSK - Serikat Pekerja Tekstil, Sandang dan Kulit (Textile, footwear and leather 
industrial workers' union) 
TGF - Textile, Garment and Footwear 
TNC - Trans-national Corporations, also known as Multi-national Finns (see MNC) 
UNDP -United Nations Development Programme 
US -United States of America 
VU - Undang-undang (law or legislation) 
WB - The World Bank 
WTO - World Trade Organisation. 
xv III