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 wage set, Jakarta workers disappointed
Antara News, 1 Nov 2013
 
The Jakarta Labor Forum expressed disappointment with Jakarta Governor Joko Widodo for approving a minimum wage of Rp2.441 million per month for Jakarta workers.

Joko Widodo, better known as Jokowi gave his approval to a recommendation from the Wage Council setting a new minimum wage at Rp2.441 million per month or an increase from the old level of Rp2.2 million.

"I have approved and signed the new minimum wage for Jakarta based on recommendation from the Wage Council," Jokowi said. 
 
Read the full article here 

16 Provinces already set Minimum Wage
Setgab, 2 Nov 2013
 
The Ministry of Manpower (Manpower) informs, to the limit determination, Friday (1/11), from 34 provinces across the country as many as 16 provinces have established provincial minimum wage scale (UMP) in 2014.

16 provinces that have established minimum wage and reported on time per 1 November 2013 was Central Kalimantan, West Kalimantan, Jambi, South Sulawesi, West Sumatra, Bangka-Belitung, Papua, Bengkulu, NTB, Banten, South Kalimantan, and DKI Jakarta, Riau Islands, Riau, East Kalimantan and North Sumatra.

"Based on the interim report, wages in 2014 were delayed in some provinces due to still under discussion and wait for the decision of the governor's letter of each provinces," said Muhaimin Iskandar. Of the 18 provinces that have not set the minimum wage, based on the experience of previous years, there are 4 province that may not set UMP namely West Java, Central Java, East Java and Yogyakarta.

Read the full article here 
Read the Google Translate English Version here
Factory Owners Threaten to Move Away From Jakarta
Jakarta Globe, 2 Nov 2013

Factory owners at Kawasan Berikat Nasional, an industrial zone community based in Cakung-Cilincing, North Jakarta, have threatened to relocate their businesses away from Jakarta on the grounds that it is no longer conducive to do business in the capital.

“Twenty companies have been shuttered,” Bambang Heriyanto, the head of the KBN Human Resources Development Club, said as quoted by the city’s official news site BeritaJakarta.com.

“Besides high operational costs, the other reason [we want to move] is security; yesterday, almost all companies stopped production, and up until now have not resumed operations. If KBN cannot guarantee security, we will leave from here.”

Read the full article here 

Indonesia Counts the Cost of Industrial Action (Video)
ABC News, Nov 1, 2013
 
 
Interview with ILO Director on Massive Strike in Jakarta (Video)
Channel News Asia, Oct 31, 2013
View the video here

 

Companies in KBN Cakung object to Rp. 2.4 million wage
Kompas, 2 Nov 2013
 
Head of Human Resources Department PT Bangun Busana Maju Bernard Aritonang said the labor strike in Jakarta has hurt the company in the Nusantara Bonded Zone Cakung , Cilincing , North Jakarta . A number of garment companies in the industrial park also objected to the provincial minimum wage increase to Rp 2,441 million . "If this continues , we will likely move, we already prepared in the area of ​​Cianjur , " said Bernard to Kompas.com , Saturday (02/11/2013) afternoon.
 
Bernard said , the UMP of Rp 2.2 million, as now , some companies in KBN Cakung had chosen to closed . As of October 2013 , at least there are 12 companies that closed in KBN Cakung .
 
He added , now there are dozens of garment companies that will move from KBN Cakung . The companies are PT Eins Trend Global , PT Golden Continental , PT Hansnesia Dyeing, Hansoll Indo 1 , Hansoll Indo 2 , Inatai Golden Furniture , PT. JLM Apparel, PT Kyung Seung Trading Indonesia, TA Trading Indonesia, Trend Studio, and Winner International 3
 
Read the full article here (Article is in Bahasa Indonesia)

Workers will never enjoy wage increment
Kompas, 4 Nov 2013
 
Labour will never enjoy the wage increases due to high inflation. Prices of goods are expensive making real income shrinking. Government should curb inflation as low as possible by providing transportation, affordable housing, and social protection.
 
The government does not have a remuneration strategy and a comprehensive labor. This resulted in the workers always demand a wage increase towards the end of the year.
 
This similar opinion was shared by the President of Confederation of All Indonesian Workers Andi Gani Nena Wea and Secretary General of the Indonesian Labor Organization in Jakarta Timboel Siregar, Chairman of the Indonesian Employers Association (Apindo) Sofjan Wanandi in Kendari, Southeast Sulawesi, as well as the Executive Secretary in Bandung West Java Apindo Rudi Martono, Sunday (11/03/2013).

"The increase in wages and the prices of are playing chasing game. Workers, employers, and government should sit together to control the situation so that the tripartite forum is not merely formality, "said Andi.

Read the full article here (Article is in Bahasa Indonesia)

Labor Tensions Will Eventually Cease, According to Industry Officials
Jakarta Globe, 1 Nov 2013


Despite the recent uproar over labor rights throughout the country, which culminated in a mass strike on Thursday, many workers’ unions and companies believe the protests will be a thing of the past.

Mahendra Siregar, the chief of the Investment Coordinating Board, said that the government has a vested interest to better understand industrial relations as there are new dynamics in the country’s business climate.

“I’m in the process of restructuring our investment committee to include a representative from labor unions and an environmental activist,” he added.

Mahendra said the aim for the restructuring is to broaden the horizon and deepen the understanding on issues that may affect the country’s investment climate.

Still, the government aims to leave behind the situation where the cheap availability of workers is the norm, Mahendra assured.


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, USA, Switzerland and Netherlands Government  through AusAID, USDOL, SECO and Kingdom of the Netherlands

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