The Legal Aspects of Foreign Labor in Private Companies in the City of Medan

Oct 13, 2025 by wbrum.org 11 views

The Legal Aspects of Foreign Labor in Private Companies in the City of Medan

Introduction

In an effort to increase economic development and growth, the Indonesian government opens opportunities for foreign investment. This opportunity does not only apply to domestic investment but also for foreign investment. As a consequence of this policy, private companies in Medan are allowed to employ foreign workers. However, it is essential for the government to regulate legal aspects related to the use of foreign workers in these companies. This study aims to explore the challenges that exist in the application of foreign labor law and find solutions to these problems.

Background of the Study

The Indonesian government's policy to open opportunities for foreign investment has led to an increase in the number of foreign workers employed in private companies in Medan. This has created a new challenge for the government to regulate the legal aspects of foreign labor. The government needs to ensure that foreign workers are treated fairly and have the same rights as local workers. However, there are several obstacles that hinder the implementation of foreign labor law, including the content of the law, legal structure, and legal culture.

Methodology

This research is descriptive analytic with a sociological normative approach and is carried out in 63 private companies in Medan which employs 132 foreign workers. In this study, three sectors of activities that became focused were agriculture, industry, and services. From this population, eight companies were taken as purposive samples. Data is collected through questionnaire methods, interviews, and documentation studies.

Results

The results showed that there was still discrimination in the granting of positions, facility rights, and other treatment between foreign workers and Indonesian workers. In addition, there are three main obstacles in the implementation of foreign labor law, namely the content of law, legal structure, and legal culture. This creates injustice and affects the work climate in these companies.

Obstacles in the Implementation of Foreign Labor Law

1. Content of Law

Existing regulations are considered inadequate and do not cover all aspects needed for the protection of foreign and local workers. Many provisions are ambiguous and difficult to interpret, thus affecting company compliance with the law. The lack of clear regulations has led to confusion among companies and workers, resulting in unfair treatment of foreign workers.

2. Legal Structure

At the institutional level, there are deficiencies in supervision and law enforcement. The lack of coordination between government agencies is also the cause of this problem, where institutions that should supervise cannot carry out their functions properly. This has led to a lack of accountability and transparency in the implementation of foreign labor law.

3. Legal Culture

Legal culture in the community tends not to support the protection of labor rights. The perception of foreign workers as "high-class workers" and Indonesian workers as "lower-class workers" creates adverse stigma. This has led to a lack of trust and understanding between foreign workers and local workers, resulting in a negative work climate.

Solution to Overcome Obstacles

To overcome these various obstacles, it is necessary to make new laws and regulations that specifically regulate aspects of the law of foreign labor. The regulation is expected to function as a guide in the completion and placement of foreign workers, as well as encouraging them to participate in associations in Indonesia.

In addition, the government needs to improve the quality of human resources in Indonesia. Better training and education programs will improve the competence of local workers so that they can compete with foreign workers. Thus, the involvement of foreign workers can be done fairly and beneficial to all parties.

Conclusion

By understanding and overcoming problems in the legal aspects of foreign labor, it is hoped that private companies in Medan can operate more effectively and fairly, creating an inclusive and profitable work environment for all workers, both local and foreign. The government needs to take a proactive role in regulating the legal aspects of foreign labor and improving the quality of human resources in Indonesia.

Recommendation

Based on the findings of this study, the following recommendations are made:

The government needs to make new laws and regulations that specifically regulate aspects of the law of foreign labor.
The government needs to improve the quality of human resources in Indonesia through better training and education programs.
The government needs to increase supervision and law enforcement to ensure accountability and transparency in the implementation of foreign labor law.
The government needs to promote a positive legal culture that supports the protection of labor rights.

Limitation of the Study

This study has several limitations, including:

The study only focuses on private companies in Medan and does not include other sectors or regions.
The study only collects data from 63 private companies and 132 foreign workers, which may not be representative of the entire population.
The study only explores the challenges and obstacles in the implementation of foreign labor law and does not provide a comprehensive solution to these problems.

Future Research

Future research should focus on exploring the challenges and obstacles in the implementation of foreign labor law in other sectors and regions. Additionally, future research should provide a comprehensive solution to these problems, including the development of new laws and regulations, improvement of human resources, and promotion of a positive legal culture.

References

[List of references]

Note: The references should be listed in a separate section at the end of the article.
Frequently Asked Questions (FAQs) about the Legal Aspects of Foreign Labor in Private Companies in Medan

Q: What is the purpose of this study?

A: The purpose of this study is to explore the challenges that exist in the application of foreign labor law and find solutions to these problems.

Q: What are the main obstacles in the implementation of foreign labor law?

A: The three main obstacles in the implementation of foreign labor law are the content of law, legal structure, and legal culture.

Q: What is the content of law obstacle?

A: The content of law obstacle refers to the existing regulations that are considered inadequate and do not cover all aspects needed for the protection of foreign and local workers.

Q: What is the legal structure obstacle?

A: The legal structure obstacle refers to the deficiencies in supervision and law enforcement, as well as the lack of coordination between government agencies.

Q: What is the legal culture obstacle?

A: The legal culture obstacle refers to the perception of foreign workers as "high-class workers" and Indonesian workers as "lower-class workers" that creates adverse stigma.

Q: What are the solutions to overcome the obstacles in the implementation of foreign labor law?

A: The solutions to overcome the obstacles in the implementation of foreign labor law include making new laws and regulations that specifically regulate aspects of the law of foreign labor, improving the quality of human resources in Indonesia, and promoting a positive legal culture that supports the protection of labor rights.

Q: Why is it important to regulate the legal aspects of foreign labor?

A: It is essential to regulate the legal aspects of foreign labor to ensure that foreign workers are treated fairly and have the same rights as local workers.

Q: What are the benefits of regulating the legal aspects of foreign labor?

A: The benefits of regulating the legal aspects of foreign labor include creating an inclusive and profitable work environment for all workers, both local and foreign, and promoting economic growth and development.

Q: Who is responsible for regulating the legal aspects of foreign labor?

A: The government is responsible for regulating the legal aspects of foreign labor, including making new laws and regulations, improving the quality of human resources, and promoting a positive legal culture.

Q: What are the challenges of regulating the legal aspects of foreign labor?

A: The challenges of regulating the legal aspects of foreign labor include the lack of clear regulations, deficiencies in supervision and law enforcement, and the perception of foreign workers as "high-class workers" and Indonesian workers as "lower-class workers".

Q: What are the recommendations for regulating the legal aspects of foreign labor?

A: The recommendations for regulating the legal aspects of foreign labor include making new laws and regulations that specifically regulate aspects of the law of foreign labor, improving the quality of human resources in Indonesia, increasing supervision and law enforcement, and promoting a positive legal culture that supports the protection of labor rights.

Q: What are the future research directions for regulating the legal aspects of foreign labor?

A: The future research directions for regulating the legal aspects of foreign labor include exploring the challenges and obstacles in the implementation of foreign labor law in other sectors and regions, and providing a comprehensive solution to these problems.

Q: What are the implications of this study for policymakers and practitioners?

A: The implications of this study for policymakers and practitioners are that they need to take a proactive role in regulating the legal aspects of foreign labor, improving the quality of human resources in Indonesia, and promoting a positive legal culture that supports the protection of labor rights.

Q: What are the limitations of this study?

A: The limitations of this study include the focus on private companies in Medan, the limited sample size, and the lack of comprehensive solution to the problems.

Q: What are the future directions for this study?

A: The future directions for this study include exploring the challenges and obstacles in the implementation of foreign labor law in other sectors and regions, and providing a comprehensive solution to these problems.