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.

May Day Marks a Year of Advancement for Indonesia’s Workers
Jakarta Globe, May 2, 2012

Several pro-labor reforms have taken effect in Indonesia in the past 12 months. 

In November, the House of Representatives enacted the National Social Security Law requiring all workers’ insurance and pension schemes to be managed by a single entity, the BPJS. 

The body, set to begin operations on Jan. 1, 2014, will provide health insurance to all Indonesians and expatriates who have worked here for at least six months. 

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Higher Pay the Issue on May Day in Indonesia
Jakarta Globe, May 1, 2012
 
With tens of thousands of workers across the country set use May Day protests today to demand better wages, business leaders and economists say any rise in pay must be matched by an improvement in productivity. 

Citing increasing living costs, labor unions are rallying for higher pay and a halt to some outsourcing practices.

Data from the International Labor Organization shows that Indonesian workers are among the region’s lowest paid. 

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New tax plan, a May Day gift for labor: Minister
Jakarta Post, May 1, 2012

Despite the potential for a substantial loss of tax income, the government says it will implement a policy to exempt workers with a monthly salary of no more than Rp 2 million (US$218) from income tax.

In the policy, which Manpower and Transmigration Minister Muhaimin Iskandar called, as ‘a gift’ to the country’s workers this International Labor Day, the government will raise the threshold on non-taxable income (PTKP) to Rp 24 million, from the current Rp 15.8 million per year.  

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Workers unite under new labor council
The Jakarta Post, May 1, 2012

Labor union leaders have established a new workers’ council that they say will unite workers at a rally meeting at Bung Karno Stadium on Tuesday.

"Workers' struggles have thus far been fragmented, which is why we are creating this council. It’s the largest workers organization in Indonesia, maybe even the world," chairman of the Confederation of Prosperous Indonesian Labor Unions (KSBSI) Mudhofir said.

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Editorial: A balance on labor rights
The Jakarta Post, May 1, 2012

It is a universally accepted economic principle that business owners always want to reap as much profit as possible by means of, among other things, pressuring the costs — particularly labor costs — to the very minimum. It is, of course, completely within their rights to pursue maximum yield from their businesses, so long as they are in line with existing laws and regulations. 

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Editorial: Productivity Must Match Pay Increases
Jakarta Globe, May 2, 2012

Indonesian workers, as has become traditional in the Reformation era, will join their co-workers around the world in marching today for higher wages and better working conditions. In marking May Day, they will remind us all of their contribution to both society and the economy. 

Ever since the industrial revolution, workers have strived to improve their lives and working conditions.  

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May Day rally as part of labor union’s strategic action
The Jakarta Post, May 1, 2012

Since the fall of the authoritarian Soeharto regime in 1998, thousands of workers from numerous labor unions across the country have taken to the streets every May 1 to mark International Labor Day or “May Day”. 
 
The rallies, which voice workers’ aspirations and reinforce long-held “street level political activities”, underline workers’ demands for a more labor-friendly public policy that will impact on their living standards. 

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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 government through AusAID


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