It had its origins in the Indonesian Prosperous Laborers organization (SBSI), which in 1993 threw its support behind the Indonesian Democratic Party (PDI) as a vehicle for its political aspirations.

When the PDI split in 1996, it allied itself with the breakaway faction led by Megawati Sukarnoputri, which led to it coming under pressure from the New Order government of President Suharto.

On 30 July 1996, SBSI chairman Muchtar Pakpahan was detained on subversion charges.

After the failure in 1999 election, the party changed its name to Social Democrat Labour Party (Indonesian: Partai Buruh Sosial Demokrat).

[1][2] After initially failing to qualify, following a lawsuit the party won the right to contest the 2009 elections.