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.

Labor Intensive Industry is Burdened by Wages Problem
Jakarta Post, June 4, 2013

Jakarta - Labor-intensive industry had not seems to be able to adjust to the rules determining provincial minimum wage (UMP). Many labor intensive industry feel burdened with the UMP increase as high as 40%.

The same thing was said by the Director General of Manufacturing from the Ministry of Industry  Panggah Susanto. He said the high increase in the minimum wage this year have greatly affects the growth of manufacturing industry, particularly the labor-intensive industries. According to him, businesses are not concerned about the increase in UMP, as long as it had used a rational pattern.

"This had affected the performance of labor-intensive industries, such as textiles and textile products (TPT), the sales to overseas market is decreasing. There has to be a rational arrangement, not just suddenly increase by 40%, "he said.

Based on the record of the Indonesian Footwear Association (Aprisindo), UMP increase earlier this year making footwear businesses in Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek) layoff 44,000 employees. Currently, workers in the footwear sector reached 1.2 million people.

Read the full article here (Article is in Bahasa Indonesia)

Legislators want govt to increase minimum wage
Jakarta Post, June 18, 2013

House of Representatives legislators urged the government to revise the minimum labor wage after the plan on raising subsidized-fuel price had been approved.

Golkar Party's Poemida Hidayatullah said as quoted by tribunnews.com that the government had to start formulating incentive schemes for businesses so that they would not bear higher production costs if the minimum wage were to be increased.

Separately, Rieke Dyah Pitaloka from the Indonesian Democratic Party of Struggle (PDI-P) said that the minimum labor wage should be increased by at least 30 percent.

Read the full article here
ILO Calls on Government to Stop Child Labor
Tempo.co, June 14, 2013

The International Labor Organization (ILO) predicted that approximately 26 percent of the total 2.6 million domestic workers in Indonesia are children under the age of 18 years old. Out of the 26 percent, as many as 90 percent out are females from poor families in villages.

South Sulawesi ILO Coordinator Imelda Amelia Sibala said that making children work automatically blocks their access for growth.

"If they do not go to school, then they will automatically have no skills," she said during the 'Night Dialogue and Screening of Films about Children' held by ILO in cooperation with the South Sulawesi Child Protection Agency during the World Against Child Labor Day last June 12.

Imelda believed that if the government allows children to work, that means it must accept the fact that in 15 years there will be more citizens out of work

Read the full article here
Work sharing can save jobs in times of crisis
ILO, June 18, 2013

GENEVA (ILO News) – Work sharing has been widely used to preserve jobs during the Great Recession of 2008-2009 and its aftermath, and may even have the potential to generate new employment, according to a new ILO book.

Work sharing during the Great Recession, New developments and beyond – edited by ILO researchers Jon C. Messenger and Naj Ghosheh – shows that there has been a dramatic re-emergence of work sharing as an effective labour market policy tool to preserve existing jobs in times of economic downturn.

“If crisis work-sharing policies are properly designed and implemented, the result can be a ’win-win-win solution’,” explains Messenger. “Workers can keep their jobs; companies can survive the crisis and be well-positioned when growth returns, while governments as well as society as a whole can save on the costs of unemployment and social exclusion.”

Read the full article here
Download the executive summary here
Sritex in Talks With H&M as it Stands to Benefit From Bangladesh Disaster
Jakarta Globe, June 17, 2013

Sri Rejeki Isman, an Indonesian textile and garment company that recently went public, is in talks to produce garments for Swedish clothing company Hennes & Mauritz as it pulls some of its production from Bangladesh.

The Stockholm-based company, which will open its doors in Jakarta later this year, is among Bangladesh’s top buyers. After the collapse of the Rana Plaza factory killed more than 1,100 people in April, the company has reportedly been looking for different suppliers.

According to H&M’s annual report, clothing is sourced from 800 independent suppliers, mainly situated in Asia and Europe.

“We are still discussing the product line,” Iwan Lukminto, president director of Sri Rejeki (Sritex) said, but added that it was unlikely that H&M would move its entire capacity to Indonesia.

.Read the full article here
Activists urge more focus on social welfare
Jakarta Post, June 17, 2013

Activists have urged the city to focus on programs that give the urban poor as much access as possible to social welfare and job security.

Hamong Santono of the International NGO Forum on Indonesian Development (INFID), said key characteristics of the urban poor were vulnerability to losing income caused by job uncertainty and helplessness in the face of floods and disease caused by poor basic infrastructure.

Worse, they were unaware of their rights as residents, while their roles as illegal squatters and informal workers were not fully recognized in the city’s programs.

 “The city should expand its social security programs such as the KJS [Jakarta Health Card]. The urban poor find this KJS program very helpful because they get free access to medication,” he told The Jakarta Post recently.

Read the full article here
ASEAN single market behind schedule: Report
Jakarta Post, June 21, 2013

The idea for an ASEAN single market, initiated in 2007, is unlikely to come into effect on schedule due to unsettled problems among member states.

The high-profile ASEAN Economic Community (AEC), also called the ASEAN single market, may not be fully implemented in 2015 as it appears there is a mismatch between political ambition and political will among several member states, a report says.

The implementation of the AEC, under which 10 member states of ASEAN are set to see economic integration, is behind schedule on its stated objectives and timelines, according to a report published by the CIMB ASEAN Research Institute.

The report, titled The ASEAN Economic Community: The Status of Implementation, Challenges and Bottlenecks, also says that progress toward the AEC does not fully correspond with the reality and is influenced by political motives.

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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