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.

Better Work Indonesia arrive in Bandung
Kompas, Feb 8, 2013

BANDUNG, KOMPAS.com - Better Work Program Indonesia (BWI) which is a partnership of the International Labour Organisation (ILO) and the Ministry of Manpower and Transmigration has now entered the second phase. This means the program mentoring for the garment sector companies can now be enjoyed by companies located in Bandung Raya and Central Java.

BWI is a mentoring program for companies, ranging from socialization basic rights for workers, new labor regulations for middle management, as well as auditing the companies. Service of the program is starting from 2,000 dollars to 3,500 dollars per year, depending on the scale of their business.

"For phase I, which is located in the Greater Jakarta area plus Karawang, Purwakarta, and Majalengka, there are 71 companies that have chosen to join," said Enterprise Advisor from BWI, Mohammad Anis Agung Nugroho, Friday (08/02/2013).

Read the full article here (Article in Bahasa Indonesia)
Read the Google Translate English Version here

Government to Exempt Hundreds of Companies from Minimum Wage Rise
Jakarta Globe, Feb 7, 2013

Hundreds of companies will be exempt from paying their employees the new minimum wage to prevent bankruptcy, the manpower and transmigration minister said on Thursday.

"There are 941 companies requesting the delay of the minimum wage increase, we will grant about 80 percent of them, but please note that the delay was needed as a logical alternative rather than closing down those companies," said Muhaimin Iskandar, the manpower and transmigration minister.

The announcement was made just a day after hundreds of workers demonstrated in Jakarta to demand the government enforce the minimum wage increase which was announced at the end of last year.

The monthly minimum wage of Rp 2.2 million ($227) is a hefty 44 percent increase from the 2012 standard. This prompted scores of businesses to apply to the city administration for an exemption from having to pay it.

Read the full article here
Companies have to compose Wage Scale
Kompas, Feb 7, 2013

JAKARTA, KOMPAS.com - Companies must optimized the decision of suspension of minimum wage by composing wage scale and structure. Management should no longer ignore this in order to ensure a fair remuneration for the workers according to their competence and length of service

Minister of Manpower and Transmigration Muhaimin Iskandar confirmed this in Jakarta, Thursday (02/07/2013).

The local government granted a suspension of provincial minimum wage (UMP) in 2013 to 489 companies from 949 companies that filed suspension request.

"Labor-intensive industries continued to receive attention in order to keep the production running and no layoffs. Employers should immediately organize the structure and wage scales, so that the wage gap is not too wide," said Iskandar.

Read the full article here (Article in Bahasa Indonesia)

Workers educated on minimum wage
The Jakarta Post, Feb 5, 2013

About 300 workers from the Alliance of Indonesian Labor Unions Congress (KASBI) distributed information on new minimum wage rules in Tangerang, Banten.

At a rally on Monday, the workers distributed copies of a gubernatorial regulation dictating sectoral wages for 2013 for industrial firms.

KASBI coordinator Sunarno said that 134 local companies have delayed implementing the wage hikes, claiming fears of bankruptcy and threatening to fire employees or to relocate their factories.

“Through this rally, we are trying to familiarize workers with the new wage rules and the obligation of their employers to meet our demands. This will be a peaceful rally, because we have written to the management of the industrial firms to let representatives of their workers meet with us,” he said.

Read the full article here

Unions’ Stand on Social Security Premiums Is Easing, Govt Says
Jakarta Globe, Feb 5, 2013

Opposition by labor unions to workers paying a monthly premium for the government’s new social security scheme appears to have eased, with officials saying the unions are starting to realize the need for the payments.

Ghazali Situmorang, the deputy chairman of a working team responsible for the implementation of the Social Security Organizing Body (BPJS), said on Monday that the government had managed to sway some unions during a series of meetings to discuss the issue.

He said that while union officials recognized that workers had an obligation to pay into the National Social Security System (SJSN) fund, they had raised the point that most workers were firmly opposed to paying the prescribed rate. Union officials have proposed that the workers’ contribution start out at 1 percent and gradually increase to 2 percent.

“Of course there hasn’t been a consensus on the issue yet because there are so many delegations representing the workers,” Ghazali said.

Read the full article here
Number of Labour Violation Still High
Galamedia, Feb 8, 2013

JLN.DAGO (GM) - The number of companies that are violating the Labour Law is still quite high. Particularly relevant on Occupational Health and Safety (K3).

"Over the last 2 years there are 144 companies in check and file for official case (BAP) for violating labor laws. Where most of the cases are about K3 - security and safety," said Secretary of the Directorate General of the Ministry of Manpower and Transmigration Directorate General of Labor Inspection, Ir T.Saut P Siahaan at the Better Work Program event Indonesia in Bandung Luxton Hotel on Friday (8/2).

He said that, out of the 144 companies who violate, the ministry just doing the filing of official case (BAP), which will be processed in court including through the industrial relations court.

"For the sanction it is depend on the court whether it will be criminal or civil case," he explained.
According to him, the high level of violations is influenced by several factors. These include inadequate inspection systems.

Read the full article here (Article in Bahasa Indonesia)
Read the Google Translate English Version here

Textile Industry: Investment targeted at IDR1.12 trillion, industry to restructure machinery
Bisnis.com, Feb 9, 2013

JAKARTA: The government expects the restructuring machinery or equipment of textile and textile products and footwear can increase competitiveness and boost investment to reach Rp1, 12 trillion this year.

Panggah Susanto, Director General of the Manufacturing Based Industry at the Ministry of Industry, said that the revitalization of the machinery and equipment over the age of 20 years is needed in order to have more modern technology.

"We expect the investment financing of the banks and the industry can reach Rp1, 124 trillion," he said, Thursday (7/2).

This year, the government allocated revitalization of the textile machinery and textile products (TPT) grant at approximately Rp110, 5 billion, down 24% compared with last year's ceiling of Rp145 billion.

This program which already held since 2007 is also believed to be able to create as many as 8300 jobs and improve the efficiency of energy use and production costs in the middle of various current problems.

 "We also hope this program can produce a higher quality and competitive products," he said.

Read the full article here (Article in Bahasa Indonesia)
Read the Google Translate English Version 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



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