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.

Indonesian Companies Given One Week Before Idul Fitri to Pay Bonuses
The Jakarta Globe, July 24, 2012

Manpower and Transmigration Minister Muhaimin Iskandar is giving companies up to one week before Idul Fitri to pay their Muslim workers one month’s worth of salary as part of a government mandated bonus during the holy month.

“We will set up monitoring posts; one week before Lebaran, the [money] should be distributed. The amount is one month of pay for the worker,” Muhaimin said, using “Lebaran” the popular term for the Idul Fitri holiday, which marks the end of the Muslim fasting month.

He added that the monitoring posts would be set up at each manpower and transmigration office in the region and at the ministry in Jakarta.

The payment of the annual bonus is contained in a 1994 manpower ministry ruling; it stipulates the payment of annual bonuses should be distributed to workers one week before the Idul Fitri holiday.

Read the full article here

Outsourced workers are eligible to receive Holiday Allowance.
Kompas, July 25, 2012  

Jakarta, Kompas - All workers are entitled to receive holiday allowances as long as they have been working continuously for more than three months. Outsourced workers supplier companies also have to pay the holiday allowance.
 
Chairman of the Confederation of Indonesia Unions Alliance Congress (KASBI) Nining Elitos said this on Tuesday (24/7). Labor unions ask outsourcing companies not to escape from the responsibility of paying THR by arguing that it is the employer liability.
 
"All workers are entitled to THR, but the implementation is often a problem for either workers with permanent employment status, contracts, and outsourcing. However, many contract workers or outsourcing workers lost their job in the fasting month so they do not receive THR, "said Nining.

Read the full article here  (Article is in Bahasa Indonesia)
RI makes inroads in trade row
Jakarta Post, July 24, 2012

Confronted with a string of trade disputes, Indonesia has thus far triumphed in its attempts to clear its image as a transshipping nation after several countries halted their investigation into the case.

Brazil, the United States (US) and the European Union (EU) will no longer pursue Indonesia for allegedly functioning as an intermediary for Chinese-made footwear, shrimp and bicycles into their countries.

The three countries accused Indonesia of accepting the goods for re-export in order for China to circumvent quota restrictions and evade anti-dumping penalties they sought to impose.

The Indonesian Trade Ministry announced on Monday that the Brazilian government had stopped a “circumvention” investigation filed by Abicalcados, a Brazil-based footwear manufacturer that accused Indonesia of exporting Chinese footwear while claiming it was Indonesian-made.

Read the full article here
‘20m people’ to gain from proposed rule
The Jakarta Post,  July 25, 2012

The taxation director general says that the proposal to raise the annual non-taxable income benchmark to Rp 24 million (US$2,544) will in the long run benefit about 20 million low-income earners.

“The cost of living has gradually risen, so we need to adjust the benchmark,” taxation director general Fuad Rahmany told reporters on Tuesday.

As of January 2012, the directorate general recorded 8.5 million individual taxpayers. Since April, the office has conducted a survey to net new taxpayers, a move often feared by tax evaders, although the office rarely chases after low-income earners.

Fuad said if the limit was raised, the 20 million low-income population could breathe a sigh of relief as they would not be hunted by tax officers.
Oursoucing Companies: DKI Claims that monitoring running well
Bisnis Indonesia, July 27, 2012

JAKARTA: Manpower and Transmigration, Jakarta claims to have implemented door to door surveillance systems to outsourcing companies. 

Jakarta Kadis Disnakertrans Deded Sukandar said that each supervisor at the regional level are responsible to supervise at least 50 outsourcing companies
 
Of the total 750 companies that employs thousands of workers, said Deded, no one had its license revoked because it goes according to the provisions. 

"We watched how is the relationship between unions and companies. In addition to considering the level of minimum wages, social security is also considered, and its occupational risks," said Deded, in Jakarta, Friday (20/7). 

Read the full article here (Article in Bahasa Indonesia)
 
Foreign Direct Investment in Indonesia Up 30% in 2nd Quarter
The Jakarta Globe, July 25, 2012

Indonesia's foreign direct investment rose 30.2 percent on an annual basis to Rp 56.1 trillion ($5.92 billion) in the second quarter, the government said on Wednesday, showing the G-20 member remains a magnet for investors in a troubled global economy.

The year-on-year increase in FDI was stable with the 30.3 percent reported for the first quarter of 2012, mostly supported by investment in mining and base chemicals.

Indonesia, bolstered by upgrades to investment grade status by two rating agencies, has drawn strong portfolio and foreign direct investment in recent years
 
Read the full article here 

Indonesia Sets 2-Year Target For Economic Growth
The Jakarta Globe, July 21, 2012

Indonesia is targeting a 42 percent increase in fund inflows next year as economic growth accelerates, according to estimates by Bank Indonesia deputy governor Halim Alamsyah.

Southeast Asia’s largest economy plans to attract capital and foreign direct investment inflows of $12.2 billion this year and $17.3 billion in 2013, Halim said on Friday.

Halim, one of the six deputy governors at Indonesia’s central bank, is charged of supervising the country’s banking system. The central bank forecasts gross domestic product will expand in the range of 6.3 percent to 6.7 percent next year, from a range of 6.1 percent to 6.5 percent in 2012, he said.

Indonesia’s growth has held above 6 percent even as Europe’s sovereign-debt crisis, a faltering US recovery and a slowdown in China hurt its currency and damped expansion in more export-dependent Asian nations from Taiwan to Singapore.

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

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

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