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.

Indonesia Baseline Report: Worker Perspectives from the Factory and Beyond
Better Work Indonesia, July 19, 2012 

This report synthesizes worker survey results with country, regional and industry-specific trends. The purpose of this is to identify how Better Work Indonesia could affect workers’ lives inside and outside of the factory, and devise programme innovations accordingly.
Workers reported many concerns with health issues. Thirst emerged as a serious issue with 53.5 per cent of workers reporting severe thirst often or every day. This may be connected with the high level of concern regarding excessive heat in the factories, reported by 47.6 per cent of workers as a problem.

An alarmingly high percentage (85.2 per cent) of workers reported concerns over sexual harassment. In addition, 79.3 per cent were concerned about verbal abuse such as shouting or vulgar language, and 87.4 per cent with physical abuse such as striking or pushing. Typically, around 30 per cent of workers discussed their concerns with a supervisor or manager and another 30 per cent raised concerns with their trade union representative. Another 10 per cent of workers had considered resigning.

Read the full report here

Manpower minister agrees to impose moratorium on outsourcing system
Antara News, July 17, 2012  

Jakarta (ANTARA  News) - Manpower and Transmigration Minister Muhaimin Iskandar has agreed to implement a moratorium on the outsourcing system, relating to the recruitment of workers in Indonesia.

"I agree that the government must closely observe the outsourcing system implemented in the country and stop companies from outsourcing jobs," he said here on Tuesday.

Muhaimin added that officers from the local administration that issued outsourcing permits to companies must keep a close watch on the companies' recruitment systems in order to ensure that Regulation Number 13/2003, on human resources in Indonesia, was not flouted.

Read the full article here 
Ministry of Manpower and Transmigration and Ministry of Home Affairs published joint regulation on Labor Inspection System
Antara News, July 18, 2012

Jakarta (ANTARA News) - Ministry of Manpower and Transmigration, together with the Ministry of Home Affairs issued a joint regulation of the Optimization of Labour Inspection in provincial governments and district / city.

The joint regulation includes the labor inspection system, including supervision of the implementation of outsourcing in the region.

"With the presence of the joint regulation with Minister of Home Affairs, it will reinforce the functions and duties of employees to be more optimal in performing its supervisory duties. In addition, it is also to give attention to people who do the monitoring so they will not be asked to do other things outside of their supervisory duties," Minister of Manpower and Transmigration Muhaimin Iskandar said.

Read the full article here (Article in Bahasa Indonesia)
Not Paying Salary 3 months in a row, better be ready to pay the severance payment
SuaraPengusaha.com,  July 17, 2012

SPC, Jakarta - Companies that used to delay paying the salaries of employees, need to pay attention to this. The Constitutional Court (MK) has just made a new decision that a company that does not pay the salaries of employees for three consecutive months will bear more severe consequences

In its latest decision related to Article 169 paragraph 1 letter c of Law 13/2003 on employment, allowing employees who are not paid on time for three consecutive months to apply layoff status and are entitled to full severance payment.

"To grant the entire applicant's application," the decision of the Court which was read by the Chairman of the Constitutional Court, Mahfud MD, at the Court building, Jakarta, Monday (16/07/2012).

Still in the decision, as described Mahfud, layoff filings will still able to be performed even if the salary is then paid in full in the following month.

Read the full article here (Article in Bahasa Indonesia)
Indonesia's Pledge of $1 Billion to IMF Marks an Era Of Financial Independence: SBY
The Jakarta Globe, July 11, 2012

Indonesia, which received billions of dollars in rescue funds from the International Monetary Fund more than a decade ago, is now turning to become a lender to the fund, marking an era for the country as “independent financially.”
President Susilo Bambang Yudhoyono expressed his pride over the country’s pledge to the fund.
“Now Indonesia can take a bolder stance with the IMF, as its debt has been repaid in 2005,” Yudhoyono said at the State Palace on Tuesday after holding a meeting with the fund’s managing director, Christine Lagarde. He added that Southeast Asia’s largest economy was “now independent financially.”
Hatta Rajasa, the coordinating minister for the economy, said Indonesia would provide $1 billion to the fund, with the money coming from the central bank, via its foreign-exchange reserves.
Read the full article here
4 ASEAN nations ready for economic integration
The Jakarta Post, July 20, 2012

Representatives from four ASEAN nations - Cambodia, Myanmar, Laos and Indonesia - vowed that rules and regulations are being improved to embrace an investment flow in light of the activation of the ASEAN Economic Community (AEC) in 2015.
Ade Veronica Christie, Third Secretary of the Embassy of the Republic of Indonesia in Bangkok, noted that her country is not 100 per cent ready for the integration, but Indonesia has done its best to ensure that investors and Indonesian people would gain equal benefits from greater investment.  Indonesia has amended the tax code, lowering levy on some types of investment to zero per cent. An online one-stop service centre is prepared to facilitate applications and reduce complication and fees.
The government has also identified areas for particular investment, like the Sumatras for energy resources and Java for industrial manufacturing.
Read the full article here 

World Bank: Indonesia can hold up in world crisis
Republika Online, July 14, 2012

REPUBLIKA.CO.ID, JAKARTA - Managing Director of World Bank, Sri Mulyani Indrawati, assessed that Indonesian economy could hold up amid the global economic crisis. Indonesia economy could grow in six percent, she said.

"Generally the stability of banking and financial systems is maintained. The economic growth can at least maintain the sufficient growth rate," Sri Mulyani said after meeting the Minister of Finance, Agus Martowardojo, last Friday.

The sustainable consumption and investment sectors can become the main factor to boost the economic growth in 2012. Yet, she said Indonesia must be aware of the declining price and volume of international commodity as it contributed to the declining of export growth recently.

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

Better Work Indonesia is funded by the Australian and USA Government through AusAID and USDOL



The content of this email is for general information purposes only.
The responsibility for the information and opinions expressed in this email, and any links, news articles, reports and publications attached to it rests solely with their authors and does not imply the expression of any opinion or endorsement whatsoever on the part of Better Work.  The inclusion of any links and the presentation of material do not imply the expression of any opinion whatsoever on the part of Better Work. 
Better Work makes no representations or warranties of any kind, express or implied, of the information or related graphics contained in this email.
Better Work takes no responsibility over the nature, content and availability of the external sites linked to this email.