In settling employment dispute, mediation is conducted in dispute arising between employer and employee. The purpose of this is for Indonesian government to be able to implement the employment system as written in Article 28 of UUD NKRI 1945. In Balikpapan, an employee of PT. Angkasa Pura I Bandara Sepinggan Balikpapan led a strike (“mogok kerja”). After the strike, Arif Islam the leader of the strike as well as the leader of Labour Union was fired without a clear reason. Thus, the author feels the necessity to examine the case and will discuss two issues, namely: 1) how the mediation of industrial relation based on the prevailing law is conducted, and 2) how the mediation of industrial relation is conducted in Case No. 167/ PHI.G./2012/ PN.JKT.PST is conducted? The author will use normative judicial method and descriptive in writing the thesis. Further, the author will use juridical approach and obtain references from primary, secondary, and tertiary legal materials. This thesis will give a general understanding on how mediation of industrial relation is conducted in Indonesia. Based on the research result, it can be concluded: 1) Settlement of dispute through mediation is done when bipartite stage is not reached agreement. 2) The implementation of the Industrial Relations Dispute Mediation Efforts in the Case Study of Decision Case 167 / PHI.G./2012 / PN.JKT.PST conducted by the Social Service, Manpower and Transmigration Office of Balikpapan in this case the disputing parties have entered into the Bipartite at the corporate level by deliberation but failed so the case continued until the Jakarta industrial relations court (“Pengadilan Hubungan Industrial”).