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.

Minimum regional wage to be decided in mid-November: Minister
The Jakarta Post, Nov 1, 2012

Jakarta (ANTARA News) - Manpower and Transmigration Minister Muhaimin Iskandar has said the increase in Indonesian labourers` minimum regional wage, or UMR, will be decided in the middle of this month.

Muhaimin made the statement at a seminar here on Thursday, adding that all the provincial governors in Indonesia were waiting for the outcome of the wage council meeting, which they would use as a reference while considering the UMR raise.

"After the wage council meeting, the governors will assess the UMR amount," Muhaimin said.

Read the full article here

Remuneration board raises living cost standard by 32%
The Jakarta Post, November 03,2012

The Jakarta Remuneration Board on Friday increased the standard cost of living (KHL) by 32 percent to Rp 1.97 million (US$206) from Rp 1.49 million per month, and would use it as main reference to decide the provincial minimum wage remuneration for 2013.

Deputy Governor Basuki “Ahok” Tjahaja Purnama said that the city administration was satisfied with the amount set by the KHL.

“I believe we all have agreed on the KHL’s number. The governor [Joko ‘Jokowi’ Widodo] instructed for it to be a fair amount,” Ahok told reporters after attending the meeting with the Board at the City Hall.Labor representatives wanted a total of 122 components to influence the KHL; however, Ahok said the decision to do so falls under the ministry’s authority.

The Remuneration Board is chaired by officials from the city administration, labor union representatives and employers’ associations.

Read the full article here
Indonesian Tripartite Delegation Learns Korean Labor System
Koilaf News, 22 Oct 2012

Korea Labor Foundation (KLF) invites six participants from Indonesian tripartite organizations, providing an opportunity to visit their counterpart organizations in Korea from October 22-26.

The Indonesian delegation visits Korea’s major tripartite organizations such as the Ministry of Employment and Labor, Korea Employers Federation, Federation of Korean Trade Unions, and Economic and Social Development Commission as well as other major labor-related organizations such as the Minimum Wage Council and the National Labor Relations Commission to discuss and share opinions on labor relations and labor issues of both countries.

In his welcoming remarks on October 22, Mr. Park In-Sang, Representative Chairman of KLF, said that "Unions, employers, and government of both countries need to work together to prevent labor conflicts and promote labor-management cooperation in Korean companies in Indonesia and enhance the rights and interest of Indonesian workers working in Korea."

Read the full article here
New labor policies lose-lose
The Jakarta Post, Oct 30, 2012

The Manpower and Transmigration Ministry is preparing a new decree that will make it difficult for companies to conduct outsourcing practices — a move that will affect 14 million workers and faces challenges from the private sector.

Manpower and Transmigration Minister Muhaimin Iskandar said that the government would only allow outsourcing for a small number of jobs, a move that employers said would be a violation of the labor law.

Chairman of the Confederation of Indonesian Workers Union (KSPI) Said Iqbal and chairman of the Confederation of Indonesian Prosperous Labor Union (KSBSI) Mudhofir confirmed that a joint agreement had been made over the three crucial issues, including the planned issuance of the ministerial decree on outsourcing.

Neither considered the decree a victory for workers.

Chairman of the Indonesian Employers’ Association (Apindo) Sofjan Wanandi said that by issuing the decree, the minister would violate the 2003 Labor Law that does not cap outsourcing.

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Govt Shouldn’t Be Complacent
Bisnis Indonesia - November 01, 2012 15:15

Amid global economic crisis, Indonesia’s economy appears to be on its top performance. The recent indicator that best describe the condition includes the investment grade rating given by a Japanese international rating agency, Rating and Investment Information Inc (R&I). It strengthens the previous investment grade status from Japan Credit Rating Agency Ltd, Fitch Ratings, and Moody’s.

As in term of investment, up to September 2012, it reached IDR229.9 trillion with average value over IDR70 trillion throughout the 9 months and even reached IDR81.8 trillion in the third quarter of 2012. Investment Coordinating Board is very optimistic that foreign and domestic investments could reach IDR300 trillion this year, exceeding the target of IDR283.5 trillion.

Although the country has an encouraging improvement in term of investment and prosperity level, however, there are still many domestic problems to be solved by the government, particularly creating new jobs in the labor-intensive sectors and maintaining investment and business climate primarily from negative things, including workers’ anarchism that makes investors worries

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Indonesian Growth Seen Exceeding 6%, Reduces Need for Rate Cut
Jakarta Globe, November 02, 2012

Indonesia’s economic growth probably held above 6 percent last quarter, as domestic spending and rising investment countered falling exports, giving the central bank room to refrain from cutting interest rates.

Gross domestic product probably grew 6.2 percent in the three months through September from a year earlier, according to the median estimate of 12 economists surveyed by Bloomberg News ahead of a government report due Nov. 5.

The economy expanded 6.37 percent in the previous quarter. Bank Indonesia will probably keep its benchmark rate at 5.75 percent on Nov. 8, according to all 11 economists in a separate survey.

“There’s less need to ease because the domestic economy is running quite hot,” said Eugene Low, a Singapore-based economist at DBS Group Holdings Ltd.
 
Read the full article here
Foreign investors may ‘relocate'
The Jakarta Post, Oct 31, 2012 

At least 10 companies are considering closing their businesses in Indonesia and relocating to other countries unless the government settles several labor issues that they claim hamper the investment climate, according to an influential business association.

Chairman of the Indonesian Employers’ Association (Apindo) Sofjan Wanandi said the foreign investors’ plan was apparently driven by legal uncertainties from labor issues.

He said Apindo had asked those businessmen to delay their moves pending the outcome of Apindo’s lobbying of relevant authorities to solve the problems within two months.

“Many other foreign investors will certainly follow suit if the 10 companies relocate to other countries. This will certainly have serious negative impacts on the foreign investment climate in the country and on unemployment,” Sofjan said at a seminar on job security in the outsourcing system on Tuesday.

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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