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.

Govt to Issue Presidential Instruction on Labor Wage
Tempo, 24 Aug 2013

Coordinating Minister for the Economy, Hatta Radjasa, said that the government is set to issue a Presidential Instruction regulating labor wage. Hatta said that the instruction would serve as a guideline to decide the amount of wage for labors.

"The government will issue an instruction for labor wage," Hatta said during a press conference at Mulia Hotel, Friday, August 23, 2013, adding that it serves as a guideline for regents, mayors, or governors in determining the labors' minimum wage.

Hatta explained that the minimum wage must be determined based on the standard cost of living (KHL) as well as other factors such as inflation and economic growth.

Read the full article here


Workers says no to Cheap Wage plan
Inilah.com, 24 Aug 2013

Labour rejected the government's plan to issue the instruction of the President (Presidential Instruction) on wage labor as one stimulus to overcome the declining value of the rupiah.

Said Iqbal, Chairman of the Indonesian Trade Union Confederation (KSPI) said it hoped that the President does not get stuck in low wage policy that can reduce the purchasing power of the people.

"We are worry that this President Instruction leads to low-wage
oriented policies that result in domestic consumption becomes lowered thereby slowing economic growth," said Said Iqbal to INILAH.COM, Saturday (24/08/2013).

"We will conduct national strike in October / November involving 4 million workers who are members of KAJS and KSPI. Action is also to hold onto the 50 percent increase in the minimum wage," said Said.


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Read the Google Translate English Version here
City workers seek 68 percent increase in minimum wage
Jakarta Post, August 21, 2013

The Jakarta Labor Forum demanded on Tuesday that the city administration increase the provincial minimum wage (UMP) by a staggering 68 percent to Rp 3.7 million (US$350), from the current Rp 2.2 million. The demand comes amid the recent layoffs by companies that could not meet the current wage rate.

In January 2012, the city government raised the minimum wage to its current level from Rp 1.5 million.

Forum secretary general Muhammad Toha said that the demand was quite plausible and in line with the statement made by Deputy Governor Basuki “Ahok” Tjahaja Purnama who said that the standard living cost in Jakarta was
Rp 4 million.

“This figure makes sense,” Toha said. “We are entitled to uphold our rights. We have been humiliated for a long time.”

Read the full article here
Indonesia still at top for investment
Asean Investor, Aug 23, 2013

Indonesia remains the top destination in the Southeast Asian region for corporate expansion, according to a survey released on Thursday, despite the many challenges companies cited in conducting business here.

The survey, carried out by the American Chamber of Commerce in Singapore (AmCham Singapore) and the US Chamber of Commerce, said corruption was “overwhelmingly” identified as the greatest drawback in Indonesia.

In a poll of 475 senior executives from US companies operating across Southeast Asia, 79 percent of respondents reported that their companies’ level of trade and investment in the region has increased over the past two years, and an overwhelming 91 percent expect it to increase over the next five years.

- See more at: http://www.asean-investor.com/indonesia-still-at-top-for-investment/#sthash.wqBXtyrU.dpuf

Indonesia remains the top destination in the Southeast Asian region for corporate expansion, according to a survey released on Thursday, despite the many challenges companies cited in conducting business here.

The survey, carried out by the American Chamber of Commerce in Singapore (AmCham Singapore) and the US Chamber of Commerce, said corruption was “overwhelmingly” identified as the greatest drawback in Indonesia.

In a poll of 475 senior executives from US companies operating across Southeast Asia, 79 percent of respondents reported that their companies’ level of trade and investment in the region has increased over the past two years, and an overwhelming 91 percent expect it to increase over the next five years.

- See more at: http://www.asean-investor.com/indonesia-still-at-top-for-investment/#sthash.wqBXtyrU.dpuf

Indonesia remains the top destination in the Southeast Asian region for corporate expansion, according to a survey released on Thursday, despite the many challenges companies cited in conducting business here.

The survey, carried out by the American Chamber of Commerce in Singapore (AmCham Singapore) and the US Chamber of Commerce, said corruption was “overwhelmingly” identified as the greatest drawback in Indonesia.

In a poll of 475 senior executives from US companies operating across Southeast Asia, 79 percent of respondents reported that their companies’ level of trade and investment in the region has increased over the past two years, and an overwhelming 91 percent expect it to increase over the next five years.

- See more at: http://www.asean-investor.com/indonesia-still-at-top-for-investment/#sthash.wqBXtyrU.dpuf
Indonesia remains the top destination in the Southeast Asian region for corporate expansion, according to a survey released on Thursday, despite the many challenges companies cited in conducting business here.

The survey, carried out by the American Chamber of Commerce in Singapore (AmCham Singapore) and the US Chamber of Commerce, said corruption was “overwhelmingly” identified as the greatest drawback in Indonesia.

In a poll of 475 senior executives from US companies operating across Southeast Asia, 79 percent of respondents reported that their companies’ level of trade and investment in the region has increased over the past two years, and an overwhelming 91 percent expect it to increase over the next five years.

Indonesia remains the top destination in the Southeast Asian region for corporate expansion, according to a survey released on Thursday, despite the many challenges companies cited in conducting business here.

The survey, carried out by the American Chamber of Commerce in Singapore (AmCham Singapore) and the US Chamber of Commerce, said corruption was “overwhelmingly” identified as the greatest drawback in Indonesia.

In a poll of 475 senior executives from US companies operating across Southeast Asia, 79 percent of respondents reported that their companies’ level of trade and investment in the region has increased over the past two years, and an overwhelming 91 percent expect it to increase over the next five years.

- See more at: http://www.asean-investor.com/indonesia-still-at-top-for-investment/#sthash.wqBXtyrU.dpuf

Indonesia remains the top destination in the Southeast Asian region for corporate expansion, according to a survey released on Thursday, despite the many challenges companies cited in conducting business here.

The survey, carried out by the American Chamber of Commerce in Singapore (AmCham Singapore) and the US Chamber of Commerce, said corruption was “overwhelmingly” identified as the greatest drawback in Indonesia.

In a poll of 475 senior executives from US companies operating across Southeast Asia, 79 percent of respondents reported that their companies’ level of trade and investment in the region has increased over the past two years, and an overwhelming 91 percent expect it to increase over the next five years.

- See more at: http://www.asean-investor.com/indonesia-still-at-top-for-investment/#sthash.wqBXtyrU.dpuf

Read the full article here
Firms lay off thousands, blame new minimum wage
Jakarta Post, August 20, 2013

Up to 60 companies on Pulogadung Industrial Estate (KBN) in East Jakarta dismissed at least 1,200 workers after failing to cope with Jakarta’s minimum wage.

The minimum monthly wage was raised this year to Rp 2.2 million (US$209) from Rp 1.5 million by Governor Joko “Jokowi” Widodo.

“The new minimum wage was too high for labor-intensive industries, which only have small margins. Sales also decreased and as a result many companies couldn’t pay their workers,” Bambang Adam, head of industrial relations at the Indonesian Employers Association (Apindo) East Jakarta chapter, said in a telephone interview on Monday.

Read the full article here
Businesses to recommend ‘proper’ incentives to stay alive
Jakarta Post, 22 Aug 2013

Indonesian business groups are drafting a proposal containing a set of incentives that they believe the government should provide to enhance the business climate and help sustain economic growth amid the current global slowdown.

The Indonesian Employers’ Association (APINDO) would team up with the Indonesian Chamber of Commerce and Industry (Kadin) to list the necessary incentives, including other facilities outside tax, such as arrangements to ease the flow of goods in seaports, Apindo deputy chairman Anton Supit said on Wednesday.

“Investors are currently losing confidence in the government, thereby it should send positive signals through steps that can help real problems faced by business players,” Anton said after meeting officials at the fiscal policy office.

Read the full article here
 
BI introduces new measures to boost declining rupiah
Jakarta Post, 24 Aug 2013

Bank Indonesia (BI) announced on Friday a number of changes in the central bank’s monetary instruments to help stabilize the rupiah, which has fallen sharply in recent days amid a massive outflow of foreign funds from the local equity and debt markets.

Speaking at a press conference at his office, BI Governor Agus Martowardojo said that the changes were made to support the new economic policy package introduced by the government. “This is our way of optimizing the existing monetary instruments,” he said.

The changes include the extension of the period of commercial banks’ foreign-denominated time deposits held at BI; extending banks’ counterparty coverage for derivative transactions; extending exporters’ underlying assets to obtain foreign currencies; and extending the exclusion scope of banks’ non-foreign loans. BI hopes the new policy will encourage businesses to keep their dollars at the central bank.
 
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

www.betterwork.org/indonesia
Better Work Indonesia is funded by the Australian and USA Government through AusAID and USDOL

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