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.

Govt says all workers must pay their own premiums
The Jakarta Post, October 25, 2012

Defying a ruling by the Constitutional Court, the government has insisted that all employees joining the national social security programs must pay the premiums themselves, as it is an insurance scheme not a social aid.

The Constitutional Court ruling on Oct. 16 stated that employers had to register their workers on national healthcare and occupational social security programs, and had to pay their premiums.

The court issued the ruling in response to a judicial review filed by a labor union federation against Article 15 of Law No. 24/2011 on social security providers (BPJS), which says that employers must register their workers. The article did not outline details about who should pay the premium.

The government, however, has its own interpretation of the ruling.

Read the full article here

Basuki Promises Minimum Wage Increase
Jakarta Globe, October 25, 2012 

Jakarta’s minimum wage will be increased in line with the rising cost of living, Deputy Governor Basuki Tjahaja Purnama pledged on Wednesday.

The promise came after hundreds of laborers protested in front of City Hall on Wednesday morning, demanding the city administration increase next year’s minimum wage from Rp 1.5 million ($156) per month to nearly Rp 2.8 million a month.

Basuki, who said he was shocked by the discrepancy, swiftly asked 20 KPSI representatives to meet with him and summoned the Jakarta Manpower Office chief, Deded Sukendar.

But he added the Rp 2.8 million per month proposed by the KSPI was too high. “The new figure will not reach that high, that’s too much. From the employers’ standpoint, they still need to pay [income] tax,” he said.

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Government to ban outsourcing
The Jakarta Post, October 24, 2012

Denpasar: Manpower and Transmigration Minister Muhaimin Iskandar says that the government will issue a new regulation abolishing labor outsourcing by the end of October.

“The regulation will be issued as soon as possible ... No later than the end of October,” Muhaimin said here on Tuesday.

The announcement came after huge labor strikes halted production at several industrial parks in cities throughout the country.

According to Muhaimin, the regulation will proscribe business from outsourcing employees in their core business unit, Antara news agency reported.

Read the full article here
World Bank finds Indonesia keeps improving its business environment
Antara News, October 23, 2012
 
Jakarta (ANTARA News) - A new IFC and World Bank report finds that in the year from June 2011 to June 2012 Indonesia improved its regulatory environment through a reform making it easier for local entrepreneurs to obtain an electricity connection.

The newly-released IFC report, "Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises" finds that since 2005, Indonesia has implemented a total of 18 institutional or regulatory reforms in nine of 10 areas of business regulation as measured by the annual Doing business report, the World Bank said in a press statement here Tuesday.

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Download the full report here
Indonesia receives record high FDI
The Jakarta Post, October 23, 2012

Indonesia’s investment shows no sign of slowing down as the country has booked another record high of realized investments in the third quarter this year, thanks to its economic resilience that has provided incentives for both domestic and foreign investors to establish or expand their businesses.

Realized investments in Indonesia topped Rp 81.8 trillion (US$8.52 billion) in the third quarter, growing 25 percent compared to a year earlier, according to the Investment Coordinating Board (BKPM).

“The fact that India and China are slowing down pushes investments in Indonesia, the only country with stable growth. This is why we are called the least unattractive country in the middle of global slowdown,” BKPM chairman M. Chatib Basri told reporters on Monday in Jakarta.

Read the full article here 
RI's investment engine roars in third quarter
The Jakarta Post, October 22, 2012

Indonesia’s investment engine is showing no signs of slowing as the nation booked increasing realized investments in the third quarter this year.

Realized investments in Southeast Asia’s largest economy topped Rp 81.8 trillion in the third quarter, up 25 percent from the same period last year, the Investment Coordinating Board (BKPM) reported.

Foreign direct investment (FDI) continued to dominate, reaching Rp 56.6 trillion, or 69 percent of total realized investments in the third quarter, up 22 percent from last year.

“This whole thing has happened amid the global economic slowdown, so this really is an achievement for Indonesia,” BKPM chairman M. Chatib Basri told reporters on Monday.

Read the full article here
Prime Source Forum Focus on ASEAN to be Held in Jakarta in January 2013
Kohan Textile Journal, October 22, 2012

Prime  Source Forum (PSF)-Focus on ASEAN, the annual forum for the global  fashion industry which organized by APLF Ltd Focus will be held on  January 30, 2013 in Jakarta, Indonesia. The focus will be on ASEAN which  covers such issues as development forecasts on the fashion industry,  difficulties encountered by ASEAN manufacturers and the establishment of  an effective supply chain alliance between countries in the region.

"ASEAN  is home to a burgeoning population of 600 million people, which is  equivalent to 9% of the world's population. As a single economic bloc,  it's combined nominal GDP of US$2 trillion ranks 9th in the world. We  should definitely not underestimate this fast growing region," said  Michael Duck, Executive Vice President of UBM Asia Ltd and Director of  APLF Ltd.

The ASEAN textile and apparel industry is building on  its already robust exports of apparel to major markets, proactively  integrating upstream to downstream elements of the supply chain in order  to create a more vertical sourcing platform.

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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