Who we are

Better Work Indonesia is part of the Better Work global program, which is a unique partnership between the International Labour Organization (ILO) and the International Finance Corporation (IFC).  It unites the expertise of the ILO in labour standards with that of the IFC in private sector development. Better Work Indonesia, which became operational in July 2011, is initially designed as a five-year program. The goal is to develop a sustainable approach that will allow the programme to continue independent operations after this five-year period. 
 
What we do

Better Work Indonesia (BWI) aims to improve compliance with labour standards and promote competitiveness in Indonesia’s apparel industry by assessing current workplace conditions and offering customized advisory and training services to factories to address their individual needs. The Better Work programme helps governments, unions and companies achieve compliance with the International Labour Organization’s (ILO) core labour standards and national labour laws through market incentives. It builds the capacity of employers, governments and unions to work together toward solutions that benefit all.

Manpower minister backs down on wage cap regulation
Jakarta Post, 19 Sep 2013

A minister has retracted his claim that President Susilo Bambang Yudhoyono had signed a presidential instruction that will cap the increase on minimum wages for labor intensive industries, saying that the process was halted due to “some resistance”.

Manpower and Transmigration Minister, Muhaimin Iskandar, admitted on Wednesday the instruction had not been signed yet, saying the government needed time “to raise mutual understanding” that labor-intensive corporations needed “special treatment” when it comes to the minimum wage structure.

“The new minimum wage regulation is needed to support the government’s effort to avert further layoffs amid the current economic slowdown. However, all concerned parties, be it the businesspeople and labor unions, must first accept the government’s reason [behind the new regulation],” Muhaimin, who is also the chairman of the National Awakening Party, said.

Read the full article here


Healthcare preparation in chaos
Jakarta Post, Sep 23, 2013

The government’s universal healthcare coverage program is only three months away from its effective implementation scheduled for Jan. 1, 2014, the same year the country will hold its general election.

However, the government has yet to finalize key parts of the far-reaching program, which will also impact companies and their businesses.

Okky Asokawati, a member of the House of Representatives’ Commission IX overseeing health, said the government had to pass at least eight decrees on the implementation of the 2011 Social Security Providers (BPJS) Law, which mandates two forms of social coverage.

The first, universal health coverage, aims to provide basic healthcare to all citizens, and the second, labor coverage, seeks to provide insurance for work-related accidents, old-age, pensions and death.

Read the full article here
Asia Pacific needs to prioritize structural reforms: World Bank
The Jakarta Post, Sep 20, 2013

The World Bank has said countries in the Asia Pacific region need to prioritize structural reforms to expand their economic potentials amid the declining economic climate among developing countries.

“It will surprise no one at this table to hear that I am convinced that countries in the Asia Pacific region need to make structural reform a priority in order to extend their growth potential, which remains one to two percentage points below pre-crisis levels,” World Bank managing director Sri Mulyani Indrawati said as quoted by Antara news agency during the Asia Pacific Economic Cooperation (APEC) meeting in Nusa Dua, Bali, on Friday.

Mulyani said that to maintain rapid economic growth, developing countries need to increase their efforts to reduce potential slowdowns by improving investment climate, infrastructure, increasing manpower and pushing for more productivity.

Read the full article here
Winning a case in Constitutional Court, this Ex-Security Guard smiles happily
Detik.com, Sep 19, 2013

Who would have thought, the labor law made ​​by the parliament and the government that spent billions of rupiah could be broken by members of the security guards of PT Sandhy Putra Makmur. Marten Boiliu, a security guard said he was happy because the Constitutional Court (MK) granted his petition.

Marten requested that the Court annul Article 96 of Law 13 Year 2003 regarding Manpower. This article set expiry date for the dispute on workers' wages to maximum of 2 years. With the Court's decision, there is no expiration date.

"First, give thanks to the Lord, the Constitutional Court judges and experts who helped me as well as the mass media," said Marteen in the Court House, Jl Medan Merdeka Barat, Jakarta, Thursday (09/19/2013). Marten admitted that with this decision he has now a legal standing to file a lawsuit on his severance entitlements to the Industrial Relations Court (IRC).

Read the full article here (Article is in Bahasa Indonesia)
Read the Google Translate English Version here
Fixing the minimum wage hike: Does it matter?
Jakarta Post, 16 Sep 2013

If labor unions and employers’ organizations find it difficult to agree on the minimum wage, which will improve welfare and business sustainability, the recently signed presidential instruction that sets a new structure for labor-intensive minimum wages should have settled the dispute.

The workers had initially demanded a 50 percent pay hike, while employers expressed concern about their ability to pay the new wages without affecting investment sustainability. The instruction requires local authorities to set minimum wages at the regional level and pegs the hike at 5-10 percent, on top of inflation.

The instruction has received a warm welcome from a number of employers, but was rejected by major trade unions who threatened to take to the streets or hold a mass strike if the 50 percent hike demand went unheeded.

Read the full article here
Labor Productivity and Employment Policy in Indonesia: Recent Development
Eurocham, 18 Sept 2013

Eurocham had hosted an Indonesia Quarterly Briefing event on Tue, 18 Sep 2013.

This event provides European business in Indonesia with updates from the economic and financial sectors, business environment, as well as providing special discussion on a selected topic. This time, special attention will be given to Indonesia’s labor policy. 

Ms Rahma Iryanti (Director for Manpower and Employment Opportunities Development, Ministry of National Development Planning) will share her view on the recent labor policy and its impact on productivity.

Download the presentation here

Cambodian Garment Factories Come Under Scrutiny
Wall Street Journal via OpenDevelopment Cambodia, Sept 23, 2013

A monitoring group backed by the United Nations said it would begin to publicize garment factories’ compliance with worker rights and safety standards in Cambodia, a controversial program that its organizers say will be the world’s most extensive initiative to improve working conditions at plants.

The program, which Better Factories Cambodia began rolling out on Friday, comes as the global garment industry faces increasing pressure to improve conditions after the collapse of a garment factory in Bangladesh killed more than 1,100 people in April.

- See more at: http://www.opendevelopmentcambodia.net/news/cambodian-garment-factories-come-under-scrutiny/#sthash.EbHZ16vg.dpuf

A monitoring group backed by the United Nations said it would begin to publicize garment factories’ compliance with worker rights and safety standards in Cambodia, a controversial program that its organizers say will be the world’s most extensive initiative to improve working conditions at plants.

The program, which Better Factories Cambodia began rolling out on Friday, comes as the global garment industry faces increasing pressure to improve conditions after the collapse of a garment factory in Bangladesh killed more than 1,100 people in April.

Accidents also have occurred in Cambodia recently, including two at factories in May, one of which left two people dead.

But Cambodia’s government and the country’s factory association have opposed the new program, saying it could wind up shaming only some factory owners and driving business to other countries where oversight is less rigorous.

- See more at: http://www.opendevelopmentcambodia.net/news/cambodian-garment-factories-come-under-scrutiny/#sthash.EbHZ16vg.dpuf

A monitoring group backed by the United Nations said it would begin to publicize garment factories’ compliance with worker rights and safety standards in Cambodia, a controversial program that its organizers say will be the world’s most extensive initiative to improve working conditions at plants.

The program, which Better Factories Cambodia began rolling out on Friday, comes as the global garment industry faces increasing pressure to improve conditions after the collapse of a garment factory in Bangladesh killed more than 1,100 people in April.

Accidents also have occurred in Cambodia recently, including two at factories in May, one of which left two people dead.

But Cambodia’s government and the country’s factory association have opposed the new program, saying it could wind up shaming only some factory owners and driving business to other countries where oversight is less rigorous.

- See more at: http://www.opendevelopmentcambodia.net/news/cambodian-garment-factories-come-under-scrutiny/#sthash.EbHZ16vg.dpuf

A monitoring group backed by the United Nations said it would begin to publicize garment factories’ compliance with worker rights and safety standards in Cambodia, a controversial program that its organizers say will be the world’s most extensive initiative to improve working conditions at plants.

The program, which Better Factories Cambodia began rolling out on Friday, comes as the global garment industry faces increasing pressure to improve conditions after the collapse of a garment factory in Bangladesh killed more than 1,100 people in April.

Accidents also have occurred in Cambodia recently, including two at factories in May, one of which left two people dead.

But Cambodia’s government and the country’s factory association have opposed the new program, saying it could wind up shaming only some factory owners and driving business to other countries where oversight is less rigorous.

- See more at: http://www.opendevelopmentcambodia.net/news/cambodian-garment-factories-come-under-scrutiny/#sthash.EbHZ16vg.dpuf

A monitoring group backed by the United Nations said it would begin to publicize garment factories’ compliance with worker rights and safety standards in Cambodia, a controversial program that its organizers say will be the world’s most extensive initiative to improve working conditions at plants.

The program, which Better Factories Cambodia began rolling out on Friday, comes as the global garment industry faces increasing pressure to improve conditions after the collapse of a garment factory in Bangladesh killed more than 1,100 people in April.

- See more at: http://www.opendevelopmentcambodia.net/news/cambodian-garment-factories-come-under-scrutiny/#sthash.EbHZ16vg.dpuf
A monitoring group backed by the United Nations said it would begin to publicize garment factories’ compliance with worker rights and safety standards in Cambodia, a controversial program that its organizers say will be the world’s most extensive initiative to improve working conditions at plants.

The program, which Better Factories Cambodia began rolling out on Friday, comes as the global garment industry faces increasing pressure to improve conditions after the collapse of a garment factory in Bangladesh killed more than 1,100 people in April.

Accidents also have occurred in Cambodia recently, including two at factories in May, one of which left two people dead.

But Cambodia’s government and the country’s factory association have opposed the new program, saying it could wind up shaming only some factory owners and driving business to other countries where oversight is less rigorous.

Read the full article here
Better Work Indonesia

ILO Jakarta Office
Menara Thamrin Level 22
Jl. M.H. Thamrin Kav. 3 | Jakarta 10250
Tel. +62 21 391 3112
Fax. +62 21 310 0766

E-mail: indonesia@betterwork.org

www.betterwork.org/indonesia
Better Work Indonesia is funded by the Australian, USA, Switzerland and Netherlands Government  through AusAID, USDOL, SECO and Kingdom of the Netherlands

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