Legal-Politic Reconstruction of Worker Regulation in the Regional Corporation Bumd

This research is based on the basic assumption that a change of legal politics is necessary against the prevailing employees’ administration of the regional company (corporation) in Indonesia, it is based on the fact that the employees regulation in the regional company employees which has never changed for almost 52 years, so that it causes new problems which have negative effects on development of regional companies and development of economy and regional autonomy as well. The Indonesian Constitution of 1945, in the fourth paragraph of preamble clearly states that public welfare is the main objective of the state, and so does the article 33 point (2), (3) and (4), in which it states that production branches which are vital to the state and govern the life of many people are mostly ruled by the state. Other regulation which is still in accordance with the Constitution is the act No 5 of 1962 about regional company, all are focused and meant to bring about public welfare based on reflection of democratic spirit. It is based on the act No 32 0f 2004 about regional government, the regional company has an important role to play, that is to support the achievement of public welfare which is related to regional development in the economy area which in turn results in national economy development. But with this imperfect employee’s administration, regional companies cannot achieve their maximal productivities. So from the explanation, the problem of public welfare is democratization. From the analytical result can be concluded: that legal politics of employees administration of the regional company workingman in positive law is not consistent with democracy aspect, fundamental values (justice, usefulness, legal assurance); indicates that there is a weakness in the element of legal politics of employees administration which is central to legal characteristic relating to the achievement of state’s goal.