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.

Wage System: Government will Revise
Bisnis Indonesia, 29 Jan 2013

The government will revise the wage system to be more comprehensive following the approval of approximately 50% of the total 941 companies that filed suspension of minimum wages 2013 by the local governor.

"We will arrange a wage systems that provide room for labor-intensive industries so that they are not ruined because the wages are too high," said Muhaimin Iskandar, Minister of Manpower and Transmigration, on Tuesday (01/29/2013).

According to him, Kepmenakertrans No.231/Men/2003 Regarding the Implementation of the Suspension Procedures for Minimum Wage is not suspended, but there would be a comprehensive revision.

Read the full article here (Article in Bahasa Indonesia)
Read the Google Translate English Version here

Minimum Wage 2013 - Banten: Provincial Government Decline Minimum Wage Suspension for 33 Companies
Bisnis Indonesia, 30 Jan 2013

SERANG - The re-verification result of the 23 companies that seek suspension of Banten province UMK shows that eight of those companies are denied for suspension.

Thus, coupled with the companies that previously filed suspension request, there are total 33 companies that are declined to suspend the UMK 2013.

"The re-verification result of the 23 companies that seek suspension of UMK 2013 showing that as many as 15 companies are recommended to be accepted and eight are recommended to be turned down," said the Head of Manpower and Transmigration Banten Erik Syehabudin in Serang, Tuesday (29/1)

Read the full article here (Article in Bahasa Indonesia)
Read the Google Translate English Version here
Tangerang Workers' Pay Raise in Limbo over Exemption Appeals
Tempo Interactive, 31 Jan 2013

Approximately 150,000 low-ranking employees in Tangerang, Banten, may not get a pay raise as ordained by the 2013 Regency Minimum Wage of Rp 2.2 million that became effective at the beginning of January.

By the end of the deadline of Jan. 30, a total of 62 companies have filed a report stating their inability to pay the minimum and requested an exemption.

The Head of Tangerang Manpower Department, Heri Heryanto, told Tempo on Wednesday, Jan. 30, that most of the companies were those engaged in the garment, textile, and footwear industry.

"It does depend on the financial ability of each company," Heri said. The requests for exemptions have been submitted to Banten Governor Ratu Atut Chosiyah for decision.

Read the full article here

Climbing up the global value chain
The Jakarta Post, 28 Jan 2013

There has been a paradigm shift in international trade. Trade in intermediates (semi-finished products) has overtaken trade in final goods and services as global value chains proliferate. As goods carry multiple origins, gross trade data no longer accurately reflects actual trade between countries

Trade accounted for 56 percent of Indonesia’s gross domestic product (GDP) in 2011. The import content of Indonesia’s exports is 18 percent, lower than China (27), India (19), Thailand (38) and Vietnam (28). The declining share of final goods in Indonesia’s exports reflects the competitiveness of other low-cost economies, such as China and Vietnam, as a base for final assembly.

China’s experience taught us that low-cost manufacturing cannot sustain an economy. Keeping wages as low as possible is not the answer to competitiveness, and a holistic and coherent approach to global value chain participation is imperative.

Read the full article here

National scene: Jamsostek has new details on social security
The Jakarta Post, 28 Jan 2013

JAKARTA: State-owned insurance company PT Jamsostek says it has submitted to the government draft regulations on the single provider for its universal occupational social security programs.

Jamsostek president director Elvyn G. Masassya said on Friday that the draft regulations, prepared by Jamsostek and including the advice of economists, insurance experts, employers and labor unions, were expected to be used as input by the government as it prepares to issue 11 government regulations and 10 presidential regulations on the implementation of the mandatory national social security program.

Jamsostek also worked with the South Korea’s Workers Compensation and Welfare Service (COMWEL) to prepare a draft regulation on occupational accidents and benefits, Elvyn said.

Read the full article here
Indonesian Government Prepares New Areas to Relocate Factories
Tempo Interactive, 29 Jan 2013

The Industry Ministry plans to set up three industrial areas in Java that would serve as alternatives to investors wanting to relocate their factories to areas that likely to offer lower wages compared to Jakarta and Banten. The recent flood that hit Jakarta is also considered as a factor that may prompt factory relocations.

Director General of Industrial Development Zoning Dedi Mulyadi said on Monday that the Industry Ministry was preparing Majalengka and Subang in West Java and Boyolali in Central Java as the next industrial areas.

"The lands there are vast and have considerable resources," he said.

According to Dedi, Subang has a potential productive land of 12,000 hectares, with several companies--producers of electronics and machinery, already vying to set up factories.

Read the full article here

Textile makers to invest Rp 1.5t in machinery
The Jakarta Post, 31 Jan 2013

Local textile makers will spend Rp 1.5 trillion (US$154.84 million) to buy machinery in 2013, the Indonesian Textile Association (API) says.

“The investment will only be for machinery, excluding land and buildings,” API general chairman Ade Sudrajat said in Jakarta on Wednesday.

He said that most of the investment would come from domestic firms, as investment by foreign firms stands at 20 percent.

The figure is down 34.7 percent from the Rp 2.3 trillion textile makers spent on machinery in 2012, including Rp 500 billion in foreign investment.

Separately, Industry Ministry textiles chief Ramon Bangun said that the sector faces two major problems in 2013: a 15 percent increase in electricity rates and existing Finance Ministry customs regulations, which local textile makers said have hindered their growth.

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

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



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