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.

Employers to pay for workers’ welfare
The Jakarta Post, October 17, 2012

The Constitutional Court ruled on Tuesday that employers had to register their workers on national health-care and occupational social security programs, and had to pay for their premiums. A nine-member Constitutional Court panel, chaired by Mahfud MD, made the ruling to respond to a judicial review filed by a labor union federation against Article 15 of Law No. 24/2011 on social security providers (BPJS).

The article only requires employers to register their workers without giving details as to who pays for the premium, a provision that the labor unions considered as contradicting the 1945 Constitution, which guarantees workers’ rights for social security protection.

“The article contradicts the Constitution as it gives the impression that registering the workers on the program is not mandatory,” Mahfud said, reading the court’s verdict.

The ruling said that the article should read: “Employers are obliged to have their workers registered gradually as participants with the BPJS, that workers have the right to register themselves as participants in the programs and that employers must pay for them.”

Read the full article here

Occupational Safety Costs IDR280 Trillion From GDP Per Annum
Bisnis Indonesia, October 16, 2012 

JAKARTA: Every year Indonesia's gross domestic product turns up to loss as much as IDR280 trillion from occupational safety.

According to the Minister of Work Force and Transmigration Muhaimin Iskandar, citing data from the International Labour Organization, said every year there are 99,000 accidents in Indonesia.

Of the number, he added, there are 2,144 people died and 42 people were defected.

"Therefore, we continue to socialize the application of occupational safety and health [K3] to reach K3 Cultured Indonesia in 2015," he said, Tuesday (16/10/2012).

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Govt to provide universal health coverage for all
The Jakarta Post, October 13, 2012

The central government is preparing for the implementation of universal health coverage for all as mandated in the Social Security Providers (BPJS) Law and expects to have the law’s executing body established and operational by January 2014.

Deputy Health Minister Ali Ghufron Mukti said preparations for the health security system were expected to be completed this year to allow for the January 2014 launch. Once the policy was implemented, he said, every Indonesian citizen would have health insurance.

“We have prepared the road map,” Ali said in Yogyakarta on Thursday, after officially opening a regional symposium on universal health coverage and equity, which was also attended by delegates from Australia, Cameroon, India and Thailand.

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Indonesia targets 6.7% industry growth
Antara News, October 12, 2012
Jakarta (ANTARA News) - The Indonesian government has expressed optimism that the country`s industrial growth will reach 6.7 percent, driven by the machinery and heavy equipment industry, at the end of this year.

"The growth of heavy equipment and non-metal mining industry has been predicted to reach 8.98 percent at the end of this year, while the food, drink and tobacco industry is expected to touch 7. 03 percent, and the cement and non-metal mining industry is projected to grow 6.92 percent," Industry Minister MS Hidayat said here on Friday.

"The textile industry might underperform," he stated.

"Its performance will be negatively affected by the economic crises in the United States and Europe," Hidayat added.

However, he expressed hope that the textile industry would "soon bounce back".

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RI`s economic growth second highest in the world
Antara News, October 13, 2012

Jakarta (ANTARA News) - Indonesia`s economic growth rate, projected to reach 6.3 percent at the end of this year, will be the second highest in the world after China`s 7.8 percent, according to Bank Indonesia (BI).

"Compared with other countries in the world, our economic growth rate will be much higher. We will be second only to China," said Perry Warjiyo, the central bank`s director for economic research and monetary policy, here on Friday.

He stated that the Indonesian economy would grow at a relatively high level of 6.3 percent this year, although it would be less than the 6.4 percent growth seen in 2011.

Earlier, the central bank had predicted that the national economy would expand in a range of 6.1 percent to 6.5 percent in 2012, before rising to 6.3-6.7 percent next year

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World Bank warns RI of potential China slowdown
The Jakarta Post, October 16, 2012

The World Bank says Indonesia’s economy will remain resilient against threats posed by stalling economic recovery in the US and Europe, but warned policymakers in the country to monitor economic developments in China, the potential economic slowdown of which could have more “negative spillover” effects for the archipelago.

A 1 percent economic slowdown in China may decelerate Indonesia’s economic expansion by up to a half a percent, the Washington-based institution noted in its October report released on Monday, titled “Indonesia Economic Quarterly: Maintaining Resilience”.

The report forecasts that Indonesia’s economy will expand to 6.1 percent this year and 6.3 percent next year, but warned the country over “downside external risks”, especially those stemming from China’s economy, which could push down Indonesia’s growth to just below 5 percent in 2013.

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Indonesia promising land for Taiwan
The Jakarta Post, October 15, 2012

The continuing turbulence in the world economy does not seem to worry Ko Chao Chih, a Taiwanese investor. An owner of a textile and garment factory in Cimahi, West Java, Ko has long shifted his business focus from exports to the United States and European countries to domestic sales as demand here continues to rise significantly.

Being upbeat about Indonesia’s robust economic growth, the 68-year-old businessman said that the firm would maintain its presence in the country despite a key problem — surging labor costs.

According to Andrew Hsia, the representative of the Taipei Economic and Trade Office for Indonesia, a sizeable amount of investment from Taiwanese firms will soon enter Indonesia, not only in the sectors where investment is already ubiquitous, such as textiles, garments and footwear, but also in the high-technology industry.

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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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