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.

900,000 workers to lose jobs
The Jakarta Post, Feb 14, 2013

Industry Minister MS Hidayat warned on Wednesday of massive layoffs in April if relevant authorities failed to postpone the recent rise in the minimum regional wage for labor-intensive industries.

Around 900,000 workers employed by at least 1,320 companies in the food and beverage, tobacco, textile, footwear and leather, toy and furniture sectors were set to lose their jobs, according to Hidayat.

“Businesses cannot bear the costs incurred by the new minimum wage, which has increased by an average of 43 percent,” said Hidayat.

He added that companies faced difficulties, however, in cutting the number of workers to compensate for the wage rise as severance costs for dismissed workers were extremely expensive.

Read the full article here

Wage Suspension have to be discussed by Tripartite
Tempo, Feb 13, 2013

Industry Ministry's proposal that the terms of suspension of wages requires companies to be audited by public accountant as a condition of the suspension to be eliminated  was not considered to be able to be followed up upon. Because, according to the Ministry of Manpower and Transmigration, change to that terms should be discussed with the wage councils and tripartite forums.

"So it must involve the labor groups as well. Could not just involved the government and employers," said Director General of Industrial Relations and Labor Social Security Ruslan Irianto Simbolon when contacted on Wednesday, February 13, 2013. According to Ruslan, for now employers must comply with the current specified requirements for suspension.

Based on the Ministry of Manpower and Transmigration (Decree) No. 231/MEN / 2003 on Procedures for Implementation of Minimum Wage Suspension, suspension of the minimum wage should be proposed after fulfilling several requirements. Conditions that are proposed to be changed is the company's obligation to attach the development of production and marketing for the past two years, production plans, financial statements which comprise of the company balance sheet, and the calculation of profit / loss along with an explanation for the last two years. The report must be audited by public accountant.
Employers prepare for relocation to Central Java, tens of thousands will be laid-off
Antara News, Feb 13, 2013

Jakarta (ANTARA News) - Chairman of the Indonesian Employers Association, Sofjan Wanandi, said there has been a lot of entrepreneurs in the country preparing to relocate their business to Central Java. The driver of the relocation to Central Java is the higher UMP in West Java

"For the country there already saying that they will be relocating to Central Java, and is currently undertaking preparations," said Wanandi, here on Tuesday.

Preparation includes finding land and construction of new plants, but no less important to prepare severance pay of workers who will be laid off in the Greater Jakarta area. "Severance is a problem, now they are collecting the funds," he said.

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

Minimum Wage Postponement 2013: Hampered by incomplete proposed requirements
Bisnis.com, Feb 14, 2013

JAKARTA - The process of filing of suspension of the implementation of the 2013 provincial minimum wage is still underway, but the process is hampered by incomplete proposed requirements.

According to the data, there were 949 companies Manpower seek postponement of implementation of UMP 2013, which is located in 7 provinces, namely, West Papua, East Java, Central Java, Jakarta, Yogyakarta, Banten and West Java.

Director General of Industrial relations and Labor Social Security from Ministry of Manpower R. Irianto Simbolon stated that up to now there are 489 companies received approval for suspension from different governors.

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

Stakeholders at odds over premiums for social security
The Jakarta Post, Feb 11. 2013

Stakeholders of the social security scheme are at odds over the amount of insurance premium contributions they should pay for the five mandatory national social security programs, expected to take effect by January 2014.

Details from the draft regulations prepared by the government and the National Social Security Board (DJSN) have included a proposal for premiums of 23.7 percent to be paid jointly by workers and their employers for the five mandatory programs while state-owned insurance company PT Jamsostek, which is mandated to carry out the four labor social security programs, proposed a 25 percent joint contribution from workers and their employers.

Employers and workers have voiced their differences over the amount of premiums proposed by the

Read the full article here
Workers Flat rented for Rp. 50 thousand per month
Tempo, Feb 10, 2013

TEMPO.CO, Jakarta - Ministry of Housing to soon working on the construction of 45 towers of flats (flat) to the working class of this year. "Immediately after block plan, we will immediately plant the stake, not need to wait for Presidential Decree," said Housing Minister Djan Faridz, Saturday, February 9, 2013.

Construction of the flats as facility to workers intended to reduce the burden of their life due to the high rental fee or rooming fee that workers suffered today. With the reduction of rent expense, expected transmitted money for worker's family in their hometown becomes larger.

In flats, workers will enjoy facilities like hotels. For a single room measuring 21 square meters can be filled with four workers with specification of 4 bedrooms plus a TV. "The allowed tenant will be just labors, their families will remain in the village," he said.

Read the full article here (Article in Bahasa Indonesia)
Read the Google Translate English Version here
Govt turns to industrial zoning to push growth
The Jakarta Post, Feb 13, 2013

The Industry Ministry says it will develop industrial areas according to its existing potential in the hope of enhancing competitiveness, boosting investment and fostering environmentally friendly industrial development.

The move will include revitalizing several industrial areas in Java and developing new ones outside the densely-populated island.

The ministry’s director general for industrial regions development Dedi Mulyadi said on Tuesday that the ministry would centralize machinery and high-technology industries in West Java, chemical and steel industries in Banten, labor-intensive textile and shoes in Central Java and petrochemical and oil and gas supporting industries in East Java.

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.