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.

Companies Who Don't Pay the Minimum Wage Should Leave the Capital: Basuki
Jakarta Globe, March 19, 2013

The Jakarta administration said on Tuesday that companies who were not willing to pay the new minimum wage to their employees should just leave the capital.

“Businessmen are allowed to leave, we did not raise the minimum wage without thorough consideration, that is why I told Apindo [Indonesian Employers Association] that I'm keeping my stance,” Jakarta Deputy Governor Basuki Thahaja Purnama told city news portal Berita Jakarta on Tuesday.

Basuki denied that the government's decision to increase the province's minimum wage by 44 percent to Rp 2.2 million ($227) a month was too steep and would affect businesses.

“The decent living costs [KHL] measure that the businessmen were using was wrong and we did not suddenly raise the minimum wage, but the previous minimum wage was too low and now it has to be adjusted with the inflation,” he said.

“If you [businessmen] want to leave, we can't force you to stay but we also will not let people in Jakarta to be paid lower than the KHL measures, because it is slavery,” Basuki added.

Read the full article here

Finance Ministry Refuses to Budge on Social Security Premium
Jakarta Globe, March 21, 2013

Despite mounting criticisms, Indonesia’s Finance Ministry has refused to budge on the premium pay assistance amount the government would pay under the new social security scheme, and labor unions have responded by planning another massive protest. 

The Ministry of Health and the National Social Security Council (DJSN) have been pushing for Rp 22,200 a month each for 96.4 million poor and near-poor people to benefit from the Premium Payment Assistance (PBI) program. 

But the Finance Ministry has maintained that Rp 15,500 per month for 86.4 million poor and near-poor people was all the 2014 State Budget could afford.  

“We have decided on this amount for the initial stage, and then we’ll see first how the health workers and health facilities provide the services [based on this amount]. Later, we might raise the premium,” he said.

90 Companies Relocate to remote areas, this is what Minister of Industry said
Kompas.com, March 23, 2013

JAKARTA, KOMPAS.com - Minister of Industry MS Hidayat invited for the 90 companies in Jakarta and surrounding areas to relocate his business to the remote areas. This follows the company inability to meet the provincial minimum wage (UMP), which required by the Governor of DKI Jakarta Joko Widodo.

"That may happen naturally and should not be a problem if they are to relocate their business to the remote areas. It is up to the companies and the governments of the remote areas which can meet the demands of the company," Hidayat said when met at the office of the Ministry of Industry, Jakarta, Thursday (03/21/2013) .

He said that if this is true, then there will be a labor industry grouping.

Read the full article here (Article is in Bahasa Indonesia)
Read the Google Translate English Version here
Semarang is Confident to receive relocation of Jabodetabek Industry
Republika, March 20, 2013

If the relocation of some industries from the Greater Jakarta area to the area of ​​Central Java is realized, Semarang regency became one of the areas which have declared that they are ready to accommodate.

The area is confident eventhough it is known that it has lacking of infrastructure capability. Government of Semarang  Regency stated commitment to open the opportunity of investment

Head of Integrated Licensing Service Office (KPPT) Semarang regency, Valeanto Soekendro stated that the Regent also promised to complete the connecting infrastructure (roads) until 2014. "To support the Semarang-Solo toll road (section Semarang-Bawen), Semarang regency government will also complete the construction of connectivity access among regions that had currently had not been able to support [the business needs]," he said, Wednesday (20/3).

Read the full article here (Article is in Bahasa Indonesia)
Slowing Domestic Investment Prompts World Bank to Cut Indonesia's Growth Forecast
Jakarta Globe, March 19, 2013

The World Bank has cut its growth forecast for Indonesia this year as the pace of domestic investment recedes and pressures on the country’s external balance intensify due to massive fuel imports.

The Washington-based lender forecast Indonesia’s economy would expand by 6.2 percent this year, a notch below the previous forecast of 6.3 percent. Next year’s growth projection remains unchanged at 6.5 percent, the World Bank said in its quarterly report on Monday.

Indonesia’s economy grew by 6.2 percent last year, down from the 6.5 percent expansion recorded in 2011. Indonesia’s economy has grown by more than 6 percent annually for the past three years.

“The biggest risk to near-term growth may come from domestic investment,” the World Bank said in the statement.

Read the full article here
Find the summary of the report here
Download the full report here
OUTSOURCING: Overcoming Confusion, Ministry of Manpower and Transmigration preparing Guidelines
Bisnis.com, March 22, 2013

BISNIS.COM, JAKARTA - The Ministry of Manpower and Transmigration prepare guidelines to determine which types of jobs that can be outsourced.

Director of Welfare Work Requirements and Analysis of Discrimination Kemenakertrans Sri Nurhainingsih said before the Permen No.19/2012 Regarding the requirement to send out partial production of the work to other companies, it is not clear what type of work that can be outsourced.

"As long as this is still a lot of core work outsourced, we will collect the grievances of the workers and we will solve this problem," she said, Thursday (21/3).

Read the full article here (Article is in Bahasa Indonesia)
Read the Google Translate English Version here
Industrial Estates are still concentrated in Java
Kompas.com, March 22, 2013

BANDUNG, KOMPAS.com - The spread of industrial estates in Indonesia are still concentrated in Java, especially in West Java.

Based on data from the Association of Industrial Zone in 2012, from total of ​​28,526.86 hectares of industrial areas, as many as 44.07 percent of them are in West Java, which is an area of ​​12 573 hectares. After that Banten followed  with ​​4140.66 hectares of industrial area or 14.51 percent of the total industrial area in Indonesia.

"Regions that has the next largest industry area in Riau and the islands around it which covers 3191 hectares, or 11.19 percent of the total industrial area in Indonesia," said Director General of the Ministry of Industry Development Industrial zoning, Dedi Mulyadi, in Bandung, Friday (22/3/2013).

Read the full article here (Article in Bahasa Indonesia)

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

Better Work Indonesia is funded by the Australian and USA Government through AusAID and USDOL



The content of this email is for general information purposes only.
The responsibility for the information and opinions expressed in this email, and any links, news articles, reports and publications attached to it rests solely with their authors and does not imply the expression of any opinion or endorsement whatsoever on the part of Better Work.  The inclusion of any links and the presentation of material do not imply the expression of any opinion whatsoever on the part of Better Work. 
Better Work makes no representations or warranties of any kind, express or implied, of the information or related graphics contained in this email.
Better Work takes no responsibility over the nature, content and availability of the external sites linked to this email.