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.

Revision of Decent Wage regulation is in process
Antara News, July 2, 2012 

Jakarta (ANTARA News) - Minister of Manpower and Transmigration Muhaimin Iskandar stated revision on Living component in the calculation of the minimum wage is still in the process and negotiations between workers, employers, and government are still ongoing.
 
"Everything is still in the process. It's tripartite meeting is still going on. We'll see the results of Apindo and union agreements," minister said when met at the building Kemnakertrans here on Monday.
 
The Indonesia Trade Union Confederation (KSPI) states that they reject the addition of four components in the calculation of KHL for not being in accordance with their expectations and threatened to hold a massive rally on 12 July if their aspirations are not accommodated.
 
About the threat of demonstration, Muhaimin hope that the workers can wait for the revision process and not be provoked to do demonstrations that could harm the productivity of industry.
"Yes, we ask that there should be no provocation. Everything is still under process," said Muhaimin.

Read the full article here
  (Article in Bahasa Indonesia) 

ILO - South Korea courts APINDO to hold CSR Forum
Bisnis Indonesia, July 3, 2012  

JAKARTA: The practice of business and growing corporate social responsibility in various countries and Indonesia become a new business strategy to sustain long term business.
 
For that, the International Labour Organization (ILO) in collaboration with the Embassy of South Korea and the Indonesia Employers Association (Apindo) held a CSR forum (corporate social responsibility).
 
The forum is intended to encourage CSR for investors and the entire business community in Indonesia, as well as understanding in greater depth guidance based on global compliance standards and regulations.
 
Currently, in Indonesia there are more than 200 garment factories owned by South Korean investors, all of which produce well-known brands.
 
The company represents more than 60% of the total number of garment factories in the country that serve export markets.
 
Among the companies are Hansae Co., Ltd., Pan-Pacific Co., Ltd. and Shinsung TongSang Co. Ltd, with factories in the region's strategic location on the island of Java.

 Read the full article here (Article in Bahasa Indonesia) 
See Related Article in English here

RI traders ‘most optimistic’ in region: Survey
The Jakarta Post, July 5, 2012

Local exporters and importers remain optimistic on their cross-bordertrade prospects for the next six months, despite fallout from theeurozone crisis, a recent HSBC survey says.

HSBC Indonesia’s global trade and receivables finance head, NirmalaSalli, said on Wednesday that 61 percent of 308 Indonesian exporters and
importers surveyed said that they expected their trade volume toincrease in the next six months.

“Indonesian exporters and importers still have a positive outlook onthe country’s cross-border trade prospects, despite the economic
crisis,” she said at a press conference on the survey.

Indonesian traders, she added, were among the most optimistic of therespondents for the 20 countries surveyed in HSBC’s trade confidence
index.

Indonesia scored 130, 17 points higher than the global average tradeconfidence index of 113.

Read the full article here
Textile Production Decrease 6%
Bisnis Indonesia,  July 2, 2012

Ade Sudrajat, Chairman of the Indonesian Textile Association (API), said to boost textile production in Indonesia following the need of a revision on taxation system.

Current government policies related to taxes is not yet taking side to the textile industry. "As a result, the domestic textile production fell by 5-6% in the first half of 2012, compared with last year," he told Bisnis Monday (07/02/2012).

The tax system in the country is very burdensome for local industry. As a result, employers should raise the price of the product. The effect of rising prices, the textile Indonesia is very difficult to compete in the market.

Reformation in the tax system, he said, should be based on production. "In fact, the existing system was based on expenditure," he said.

Read the full article here

Govt upbeat exports will bounce back in second half
The Jakarta Post, July 4, 2012

Despite weak overseas demand for Indonesian commodities andmanufactured goods in the first five months of the year, the governmentis upbeat that this year’s export target can be achieved.

Deputy Trade Minister Bayu Krisnamurthi said in Jakarta on Tuesday thatthe ministry was predicting higher export growth in the second half due
to surging prices for several key export commodities and products, suchas palm oil, vehicles, automotive components, electronics and footwear
 
“Exports depend heavily on global economic growth, which has been highly affected by conditions in the eurozone. However, considering that our main export commodities are growing positively, this optimism makes sense,” Bayu said. 
 
Read the full article here
 
Movie about Child Worker is being Launched
Republika Online, July 4, 2012

The International Labor Organization (ILO) in collaboration with the Kampung Halaman Foundation (YKH) launched the film in video forms about child labor in Indonesia. "This was done for the first time, the video is the result of works made by the child workers themselves, "said Director of YKH Dian Herdiyanti in Makassar on Wednesday (4/7).
 
In a press conference in Makassar Tiam Coffee Shop, she said, there are three places for the 60-minute video production which includes child workers in Jakarta, child workers in Sukabumi garment factories and child workers in the Waste Disposal Tamangapa Makassar.
 
There are six short films in each city and it will be incorporated into a single video titled 'Indonesia, I am your future I'. YKH only works as a facilitator and the children themselves makes the film.
 
"There are five sectors involved in making the video such as street children, scavenger’s children, child domestic workers, child workers in factory and children who works as sex workers. They use words and pictures of their own choice and record their own struggle in daily lives, " she explained.

Read the full article here  (Article in Bahasa Indonesia)
View the video here
V
iew the video with English Subtitle here
Discourse: RI can serve as a production base for Taiwan
The Jakarta Post, July 2, 2012

A high level business delegation from Taiwan last week visited Indonesia to explore trade and investment opportunities in Southeast Asia’s largest economy. Apart from bilateral trade talks, the visit included the signing of a memorandum of understanding (MoU) between Taiwan’s Chinese National Federation of Industries and Indonesia’s Association of Indonesian Employers (Apindo) with a vow to further strengthen economic cooperation.

The event, reportedly creating US$29.3 million in business opportunities for Taiwan manufacturers, highlights numerous economic potentials that can be developed by both countries in the future despite an absence of formal diplomatic relations due to Indonesia’s one-China policy.

The Jakarta Post’s Linda Yulisman talked to Taiwan Bureau of Foreign Trade Director General Cho Shih-chao about trade and investment issues on the sidelines of the visit. Below are excerpts from the interview.

Question: How do you view the current economic relations between Taiwan and Indonesia and how do you project it in the future?

Answer: The economic structure of Taiwan and Indonesia is mutually complementary, which means we can produce what Indonesia needs, especially now as a very large portion of the population belongs to the middle class. Those middle class consumers require good and reliable products with fine design — but sold at a fair price — and Taiwan is very good on producing such products. 

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 government through AusAID


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