Abstract
According to the Law Number 30 Years 1999, article 6 section (3) if there is a dispute, based on the written agreement, either parties can resolve the dispute through a mediator. While the Law No. 2 of 2004 article 4 section (4) if the parties do not specify the solution option whether through conciliation or arbitration within seven working days, the district institution related to employment will delegate the solution to the mediator. The mediation is conducted by a mediator in the institution related to labor affairs in district level “. Mediation is not offered in conjunction with the conciliation or arbitration because the government wants to provide public services through competent mediators to resolve four types of disputes. Only Civil Servants (PNS) working at department of labor may be appointed as the mediator to solve dispute related to the industrial relationship, because government provides public services as State responsibility and intervention to resolve disputes between citizens. The absence of either parties in the mediators may cause injustice to the applicant or the defendant because the same deed may raise a different legal consequence, so the absence of the applicant or the defendant should cause the same legal consequences. Keywords: Industrial Relations, Disputes Settlement, Mediator, Mediation.