Indonesian police mediate labor dispute, securing $615,000 compensation for 131 workers

Indonesia's National Police Labor Desk has successfully mediated a labor dispute, leading to PT Kerta Gaya Pusaka paying 10 billion Indonesian rupiah (approximately $615,000 USD) in compensation to 131 workers who were laid off.

The workers had been dismissed since 2021, and their compensation payments were delayed. The mediation, held on June 3, 2026, brought together the police's Labor Desk, the National Police Commissioner for Labor Affairs Andi Gani Nena Wea, worker representatives, and PT Kerta Gaya Pusaka management.

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The resolution of the PT Kerta Gaya Pusaka case shows that collaborative and restorative justice approaches can provide legal certainty while fulfilling workers' rights that have been pending.

Brigadier General Mohammad Irhamni, head of the Police Labor Desk, stated that the resolution demonstrates how collaborative and restorative justice approaches can provide legal certainty while fulfilling workers' delayed rights. He emphasized the desk's role in overseeing legal protections for workers, primarily through mediation and monitoring the implementation of industrial relations.

In 2025, the Police Labor Desk handled 144 labor cases, including severance pay disputes and union conflicts. National Police Chief General Listyo Sigit Prabowo previously highlighted the desk's ability to facilitate communication for stalled severance payments and assist in protecting female workers, noting persistent issues in industrial areas affecting women.

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Severance pay issues that have been stalled due to obstacles, we can help communicate them.