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.

Minister of Manpower and Transmigration ask governors to construct minimum wage roadmap
Antara News, Oct 18, 2013
 
In a press conference held at the Ministry of Manpower and Transmigration, Friday afternoon, the minister explained Permenakertrans No.7/2013 issued on Minimum Wage dated October 2, 2013.
 
"This Permenakertrans set so that the governors make a` roadmap `of labor-intensive industries wages in order to pursue KHL (decent living) and a 'roadmap' that is used to set the minimum wage for labor intensive industry and to differentiate with other industries. Roadmap will be the way to set wages every year, "said Muhaimin.
 
Permenakertrans is a follow up of the Presidential Instruction No.9/2013 on Minimum Wage Fixing Policy Framework for Improved Business Continuity and Workers Welfare 

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


Minimum Wage Protests Test Investor Sentiment
Jakarta Globe, Oct 17, 2013

About 7,000 members of the country’s largest labor unions marched through the center of Jakarta to the presidential palace to press their case for a 50 percent increase in the minimum wage and improved social welfare.

The demands add to pressure on President Susilo Bambang Yudhoyono to improve the lot of low-income workers ahead of next year’s parliamentary and presidential elections. His government has said it would announce an inflation-linked basket to set minimum wage but manufacturers worry that rising costs are already threatening to make Indonesian products less competitive.

“For sure, some investors are worried that the government will give in like they did last year,” Sofjan Wanandi, head of the Employers’ Association of Indonesia (Apindo), told Reuters. “Everyone understands that it’s totally unsustainable for business because we had to lay off thousands of workers, especially in the labor-intensive industries. This year, we have hope that the government is more serious about protecting the investors.”

 
Read the full article here 
Indonesia Seeks to Get Back Its Manufacturing Mojo
Reuters, Oct 13, 2013

Trisula's factories, 150 km (90 miles) south of the capital, illustrate the difficulties manufacturers face as workers rally for massive wage hikes and companies contend with barely functioning ports, endemic official corruption, a poorly educated workforce and fraying infrastructure.

Unions, for instance, are pressing for 50 percent wage hikes this year. The government has yet to respond. But many industry officials worry that with general and presidential elections due next year, it is unlikely to take a tough line.

Rising costs have already seen companies owned by one of Indonesia's biggest manufacturing investors, South Korea, lay off some 60,000 local workers this year, which could rise to 10 percent of its total one million workers in Indonesia by the end of the year. Many of its factories manufacture for export.

Read the full article here 

Minister Urges Businesses to Employ Disabled Persons
Tempo, Oct 16, 2013

Minister of Manpower and Transmigration Muhaimin Iskandar has urged businesses to give equal chance for people with disabilities to get a job. The Minister argued thatthe number of people with disability tends to be high and increase the number of unemployment in Indonesia.

"Work placement for people with disability needs to be addressed together and handled seriously," said Muhaimin in a press conference on Tuesday, October 15.

Based on data from the International Labor Organization (ILO), Muhaimin informed that 10 percent of Indonesian citizens or around 24 million people are people with disability. Meanwhile, data recorded by the Ministry of Manpower and Transmigration in 2010, only 11 million out of the 24 million people with disability are employed.

Muhaimin further explained that recruitment for people with disability is stipulated in Law No.4/1997 on Disabled Persons.

Read the full article here 

Starting January 1st, Govt provide Health Care Insurance for 140 Million BPJS Members
Setkab, 21 Jan 2013
 
President Susilo Bambang Yudhoyono (SBY) asserts, changes in PT Health Insurance (Askes) be Social Security Agency (BPJS) Healthcare system made to accelerate the implementation of a national social security for all Indonesian people.

"Through BPJS Health, the government wants to give a wider security for the fulfillment of health needs," said President Yudhoyono when launched BPJS in the Formation School Officers (SETUKPA) in Jalan Bhayangkara, Gunung Puyuh regent, Sukabumi,  West Java, on Monday (21/10).

The president said, in the presence of Health BPJS, starting January 1, 2014, the government will provide services to 140 million participants, including 86.4 million Jamkesmas members, 11 million members of Jamkesda, 16 million members of Askes, 7 million participants of Jamsostek, and 1.2 million participants elements of the military and police.
 
Read the full article here (Article is in Bahasa Indonesia)
Read the Google Translate English Version here

New economic package on horizon: Deputy Minister
Jakarta Post, Oct 16, 2013

Deputy Finance Minister Bambang Brodjonegoro said a new economic package would be issued at the end of October.

“We will try our hardest to make sure that by the end of October, there will be a new economic package,” he said in Jakarta on Wednesday, as quoted by Antara news agency.

Bambang said the package would include a revised regulation, such as tax holidays and tax allowances, to draw investment.

“The package will be a revised regulation on ‘intermediate goods’ and a revision on Government Regulation No.52/2011 on tax allowance,” he said.

Read the full article here 

Global Recovery to Aid Exports
Jakarta Globe, Oct 21, 2013

Exports of Indonesian goods such as furniture and textiles are expected to pick up next year on the back of recovering economies in the United States and Europe, expanding shipments to new markets and an increase in processed goods.

Furniture exports can reach $2.5 billion next year, up 25 percent from an estimated of $2 billion this year, Indonesian Furniture and Handicraft Association (Amkri) chairman Soenoto said.

His optimism is shared by Ade Sudrajat, chairman of the Indonesian Textile Association (API), who expects textile exports to increase by 8 percent next year to $14 billion.

Ade said the country’s textile industry still relied on the United States and Europe, which together account for 50 percent of the country’s textile exports.


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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