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.

New rule mulled for wage rise reference
The Jakarta Post, July 20, 2013

The government is planning to issue a new rule that will serve as a reference for tripartite negotiations to set a nationwide minimum wage increase every year.
The reference will be issued for this year’s tripartite negotiations to determine next year’s wage increases.

Industry Minister MS Hidayat said on Friday that based on the proposed reference slated to be in a government regulation, the minimum wage rise would be set at around 3 percent and 4 percent above the national inflation rate.

“The increase is still open to debate at the National Wage Council. By doing this [having a reference], we hope all business players can afford a wage increase. Otherwise, industrial growth will be burdened,” Hidayat told reporters after a meeting at Office of the Coordinating Economic Minister.

Read the full article here

Wage Formula are crashed by local politicians
Kompas, July 24, 2013

The current minimum wage formula today is already very adequate as a basis for establishing a safety net for workers. The exisiting minimum wage fixing system is damaged by populist campaign or policies by the local politicians.

Employment observer, Payaman Simanjuntak, express this in Jakarta, Tuesday (07/23/2013). Governments and employers initiated a new formulation for the minimum wage and the company's ability to compensate for workers' welfare.

"Actually existing wage formula has considered all aspects so that as long as the appropriate wage fixing principles are conducted without politicization, there will be no problem. The problem is if there is a local election promising a minimum wage increase, it is misleading, "said Payaman.

Read the full article here (Article is in Bahasa Indonesia)
National scene: Labor to be given voice in APEC summit
Jakarta Post, July 30, 2013

President Susilo Bambang Yudhoyono said he would accommodate the demand from international labor unions to speak during the upcoming Asia-Pacific Economic Cooperation (APEC) Summit in Bali, slated for October this year.

“I just met leaders of the ITUC [International Trade Union Confederation] at my office. During the last APEC Summit in Russia, they conveyed their hopes to me that the upcoming APEC Summit in Bali next October would give space to the world’s labor unions. But we will need a consensus to respond to the idea,” Yudhoyono told a Cabinet meeting at his office on Monday.

On Monday, Yudhoyono met with ITUC secretary-general Sharan Burrow and ITUC Asia Pacific secretary-general Noriyuki Suzuki. Also joining the meeting were Confederation of Indonesian Prosperous Labor Unions (KSBSI) chairman Mudhofir and Confederation of Indonesian Workers Unions (KSPI) chairman Said Iqbal, who represented Indonesian unions

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President Yudhoyono announces May 1st as national holiday.
Antara News, 30 July 2013

President Susilo Bambang Yudhoyono here on Tuesday announced May 1st or widely known as Labor Day as national holiday.

"Today I have officially approved that every May 1st will be national holiday," said the president on his official twitter account @SBYudhoyono.

The president last April said he would announce May 1st as national holiday. President Yudhoyono made the statement during a meeting with representatives of labor unions in Indonesia last April 30.

"The president will give us a long-waited gift namely to determine May 1 as the national holiday," President of the Indonesian Workers Union (KSPI) Said Iqbal said after meeting with the president.

The meeting was also attended by Coordinating Minister for the Economic Affairs Hatta Rajasa, People`s Welfare Coordinating Minister Agung Laksono and Manpower and Transmigration Minister Muhaimin Iskandar.

Read the full article here
Majalengka will be a Textile Industry Area
Tempo Interactive, 23 July 2013

Chairman of the Indonesian Textile Association, Ade Sudrajat revealed Majalengka region is projected to become a model region for the textile and garment industry.

"The goal is to maintain the productivity and competitiveness," said Ade in London, Tuesday, July 23, 2013.

According to Ade, there are already 22 textile and garment industry which move their plant to Majalengka . He hopes the move can pioneer the establishment of textile and garment industrial park there. "The most important single group of its own, namely textiles and apparel," he said.

Ade explained, textile and garment entrepreneurs do not want a situation repeated in other industrial areas in Majalengka, where the garment factory mixed with metal industry.

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

44.000 footwear workers gets laid off
Kompas.com, July 29, 2013

Pressure of rising costs and minimum wage makes shoe industry entrepreneurs gradually rationalize the number of workers in order to maintain business. Wave of rationalization or termination of employment that occurred from January to June 2013 had happened to at least 44,000 workers in the shoe industry.

Chairman of the Indonesian Employers Association (Apindo) Anton Supit express this in Jakarta, Sunday (07/28/2013). Apindo is an employer organization consisting of large and small scale companies .

Anton said that they are currently gathering data on layoffs. For footwear sector alone, he said, the layoff nuber has reached 44,000 people from at least 29 companies. "Current conditions had forced us to rationalize the number of workers in order to keep factories running due to the rise in the minimum wage which does not make sense," said Anton.

Read the full article here (Article is in Bahasa Indonesia)
Government Gets Optimistic On 6.5% Growth Of Manufacture Industry
Bisnis.com, 25 July 2013

JAKARTA: The growth of manufacture industry can reach 6.5% though target of economic growth is corrected to be no less than 6%, after the previous correction of 6.2%.
Minister of Industry, M.S. Hidayat feels optimistic that growth of manufacture industry can still reach 6.5% as he has targeted.
As for economic growth, the government intends to keep it at 6-6.3%. This is agreed by five ministers and Bank Indonesia after discussing about things related to current economic condition.
“We reviewed inflation rate. The current target of slow growth is no less than 6%. At present, based on exchange rate perspective, it is already at 6%,” said Hidayat in the office of Ministry of Industry on Thursday (7/25).
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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