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.

Spead Message to Workers, SMS and Social Media is more effective
Kompas.com, July 9, 2012 

JAKARTA, KOMPAS.com - Indonesia International Labour Organisation (ILO-International Labour Office), use short messages (SMS) and social media to inform the workers' rights. SMS Program is running since February 2012, and sent to the workers in garment factories.
 
Delivery of messages via SMS and social media considered by the ILO as more effective than the usual poster posted in walls of the factory or monthly newsletter. ILO Research conducted in several factories in Indonesia in 2011 shows almost all workers have a cell phone and 30% of them accessing Facebook.
 
ILO will send an SMS two times a week. ILO Better Work Programme Manager Indonesia Simon Field said the theme of SMS content will change every month. "On this July, ILO will send SMS about Occupational Health and Safety (K3) include, nutrient, nutrition, and so on. Because, in July, Muslims will fast," said Simon.
 
The scope of the SMS program is the workers in garment factories. Until now the ILO send SMS to 1000 workers of seven garment factories that have subscribed to this program. In August, there are 10 to 15 companies will participate to subscribe.
 
SMS program synergized with the Better Work program Indonesia that has been done by the ILO since 2007 which also focuses on garment industry. Simon explains, Better Work is a partnership program that calls on the government, employers, workers, and international buyers to work together to improve the compliance with labor standards and competitiveness in the global supply chain.
 
Another reason to choose garment industry is because there are many international garment brands that make its products in Indonesia. Facebook used to publish the latest news about the Better Work program. All information is available on the Facebook fan page Better Work Indonesia, which now has more than 20,000 fans

Read the full article here  (Article in Bahasa Indonesia) 

Decree revised to lift wage of low-income workers
The Jakarta Post, July 12, 2012  

In a move to boost the welfare of labor, the Manpower and Transmigration Ministry has revised a guideline normally used to determine the minimum wage for low-income workers.

The decision, however, met opposition from labor unions, which considered the revision to be not sufficient enough to strengthen their economic position. At the same time, employers also protested the revision, saying they had not yet given their approval.

The revised Ministerial Decree No. 17/2005 on wages was signed on July 9 by Manpower and Transmigration Minister Muhaimin Iskandar and laborers were expected to have enjoyed the wage increase by January 2013.

Through the revision, the ministry added 14 to the existing 46 components normally used to determine the level of laborers wages.

The 60 components will be a reference for local administrations in all 33 provinces to determine the index prices before setting the provincial minimum wages by the end of the year. Among the additional components are socks (four pairs in 12 months) and combs (two in 12 months). 
 
According to Muhaimin, the provincial minimum wage is effective only for single workers with less than a year’s employment. The real wage for married workers with many years of employment has to be set through bipartite bargaining and documented in labor agreements (PKB).

Read the full article here 

Workers Wage: Minister, Permenakertrans 13/2012 is the best way
Bisnis Indonesia, July 12, 2012

JAKARTA: the Minister of Manpowerand Transmigration Muhaimin Iskandar said Permenakertrans No.13/VII/2012 about Components and Implementation Phases of the Living Needs Achievement is the best, most fair way.
 
The new Permenakertrans was the result of revision of Permenakertrans No.17/VIII/2005 about the same issues.
 
"These revisions are objectively determined by careful consideration of various aspects, including assessment of the proposal that comes from all parties concerned," said Muhaimin on Thursday (7/12/2012).
 
In this new improved Permenakertrans, he added, the number of the original 46 types of components of living needs (KHL) is changed into 60 different components.
 
In addition, there are eight types of adjustments / additions in quality and quantity of the KHL, as well as a change in type of requirement.
 
"This addition is used as an ingredient in the implementation of the decision process of new KHL price survey in 2013 minimum wage setting framework," he said.

Read the full article here (Article in Bahasa Indonesia)
JAMSOSTEK Administering Bodies Law Assessed by Two Working Groups
Bisnis Indonesia,  July 9, 2012

JAKARTA: The government team up two working groups implementing regulations of Law Social Security Administering Agency for Employment.
 
The two working groups (task force) are financing, contributions and benefits working group that led by the Director General of Development of Labor Inspection from Ministry of Manpower and Transmigration Mr. Muji Handaya.
 
The second working group is the regulatory task force working group, and institutional transformation program led by Director General for Development of Industrial Relations and Social Security of Manpower and Transmigration Mr. R. Irianto Simbolon.
 
According to the Secretary General of Ministry of Manpower and Transmigtation Muchtar Lutfie who is also the Coordinator of the Development Regulations for Implementation of BPJS Employment Act, the government is targeting that the preparation for  all the regulations implementing that provision to be completed on 1 November 2013.
 
Until now, the team constructing 4 Government Regulation (PP) and 3 Presidential Decree (Perpres) which would be the implementing regulations of Law no. 24/2011 on BPJS.

Read the full article here
 (Article in Bahasa Indonesia)
RI needs to maintain its charm as destination for trade, investment
The Jakarta Post, July 7, 2012

The International Monetary Fund (IMF) is effectively reminding Indonesia of its own proverb that things are easier to achieve than to maintain, amid its recent domestic policy shifts.
 
Indonesia’s economic growth rate has been forecast to drop to 6.1 percent this year on weakening global conditions-lower than the government’s 6.5 percent target — but “free and open trade regime and investment climate will be important to propel growth further”, according to the international lender.
 
“It’s very important for Indonesia to continue to be seen as a very attractive destination for both trade as well as for investment [...] to the extent that the government can clarify and come up with a consistent, coherent framework — that will also assure investors,” Sanjaya Panth, division chief in the IMF’s Asia and Pacific Department, said on Friday.
 
Read the full article here
 
Sri Mulyani Says Developing Countries Can Lead
The Jakarta Globe, July 11, 2012

Nusa Dua, Bali. Developing countries could provide solutions to the economic problems now faced by the global community, World Bank managing director Sri Mulyani Indrawati said on Tuesday. 

Speaking at the High Level United Nations Conference on South-South Cooperation in Bali, the former Indonesian finance minister told representatives from 46 countries that many states in the developing world had already overcome significant obstacles themselves. 

“Many developing countries have been able to solve their developmental problems,” she said. 

While developed countries like those in Europe have been facing economic woes, countries in the South-South bloc, especially in Asia and Latin America, have withstood the global downturn and become the world’s prime source of growth. 

Read the full article here 

2013 Economy Growth 6.8% - 7.2%, Hatta: Need to work hard
Inilah.com, July 7, 2012

INILAH.COM, Jakarta - The government is optimistic that the assumption of economic growth in 2013 from 6.8% -7.2% range will be achieved, but it requires hard work in the global conditions that are still vulnerable.
 
Coordinating Minister for Economic Affairs Hatta Rajasa said Indonesia capable for the 2013 economic growth which is assumed to be 6-8% -7.2%. It is seen from the achievement of economic growth to date. "If we look at from 6.8 to 7.2 per cent was something that could be achieved by Indonesia, given the situation is worst in Europe, we can still grow in the first quarter (2012) of 6.3 percent," said Hatta in Jakarta, Friday (07/06/2012).
 
According to him, economic growth next year will still be supported by growth in investment and consumption. While for exports, which also support Indonesia's economic growth over the years, have to expand in the area of marketing.

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

www.betterwork.org/indonesia
Better Work Indonesia is funded by the Australian and USA Government through AusAID and USDOL

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