: Islamic Law Perspective of the Dynamic of Industrial Relation in Indonesia. The dynamic of industrial relation in Indonesia has undergone very long history since Colonial period to the Reformation era. This essay tries to elucidate relation pattern of labor ideology which seem to be influenced by Liberalism and Communism followed by two extreme economic ideologies vis-à-vis Islamic system. The author asserts that although regulations pertaining to labor have been made available, disputes and disharmony between workers and company or employer still occur repeatedly. Substantially, the regulations encompass delicate problems which are evident form the fact that the government is incapable of handling labor problem efficiently. The author concludes that Islamic concept should become an alternative in dealing with industrial relation which emphasizing equality and just principles and thus it is free from authoritarianism and expoloistation of Capitalistic models as well as from dictatorship of Communism ideology.