Indonesia Business Forum 2022 showcases a decade of progress and challenges in Indonesia’s garment industry

Better Work Indonesia, a joint programme of ILO and the International Finance Corporation (IFC), highlights a collective effort undertaken by Indonesian garment industry to gain a significant improvement in compliance of labour laws and standards.

News | Jakarta, Indonesia | 16 December 2022
JAKARTA, Indonesia (ILO News) - Better Work Indonesia (BWI), a joint programme of ILO and the International Finance Corporation (IFC), organized its annual Indonesian Business Forum (IBF) 2022 in Jakarta on 8 December, after being disrupted for three years due to the COVID-19 pandemic. Attended by over 150 BWI’s international buyers, agents, group manufacturers, licensees, vendors and relevant stakeholders online and offline, the IBF also marked the tenth anniversary of the programme in Indonesia.

The tripartite panel discussion examines issues related to the impact of COVID-19 and the Job Creation Law.
Through its a new report, “The Impact of BWI: A 10-Year Reflection”, BWI highlights a significant improvement shown by the Indonesian garment sector in compliance with labour regulations and standards and the existing challenges in maintaining this improvement. The report also demonstrates a collective effort undertaken by both workers and employers as well as international brands to gain such an achievement.

"Despite some significant challenges, I am pleased to see that many compliance issues have been improved through the strengthening of collective bargaining activities and agreements as well as improvement of working conditions," stated Michiko Miyamoto, ILO's Country Director for Indonesia and Timor-Leste, in her opening address.

Despite some significant challenges, I am pleased to see that many compliance issues have been improved through the strengthening of collective bargaining activities and agreements as well as improvement of working conditions."

Michiko Miyamoto, ILO's Country Director for Indonesia and Timor-Leste, in her opening address
In addition to the launch of the report, the IBF presented a tripartite panel discussion, discussing issues related to the impact of COVID-19 and the Job Creation Law, deliberated in March 2020, to the Indonesian garment sector. The panel discussion included Anne Patricia Sutanto, Vice Chairperson of the Indonesia’s Textile Association (API), Djoko Heriyono, Chairperson of National Trade Union under the Confederation of Indonesian Trade Union (SPN-KSPI), Surya Lukita Warman, Secretary of Manpower Ministry’s Directorate General for Industrial Relations and Faisal Basri, a leading economist from University of Indonesia.

The discussion reviewed and examined economic challenges and way forwards for the garment sector by highlighting possible future risks in anticipation of a potential wave of economic crisis. "We may already know that the industries with the highest growth Q1 to Q3 this year are textile and garment," explained Faisal. "Fashion and garment are the most impacted, but they recover the fastest."

A similar assessment was also shared by Anne as the representative of the garment industry, saying that Indonesia's garment industry has successfully proven to withstand the economic downturn caused by the pandemic because of automation, adaptation and collaboration with the labour force. "Our sector survives and thrives because we, together with our unions or partners, work hand-in-hand to continue producing top-quality products for this industry," she said.

Participants try to identify acts of sexual harassment from a poster depicted common risks from daily working situations.
The IBF also put the spotlight on sexual harassment and workplace violence in the garment sector. Participants joined an exercise where they had to identify acts of sexual harassment from a poster depicted common risks from daily working situations at various factories across the country, as reported by garment workers during sessions of BWI’s Respectful Workplace Programme (RWP) training programme. The exercise clearly showed that sexual harassment could occur in all departments of a garment factory as well as perpetrators and victims could be anyone working at the factory.

Fashion and garment are the most impacted, but they recover the fastest."

Faisal Basri, a leading economist from University of Indonesia
To demonstrate actions taken to make Indonesian garment sector free from harassment and violence, the IBF provided an exhibition to showcase efforts taken by some of BWI’s participating factories. The exhibition presented champions of RWP explaining efforts on policy development, training programme, socialisation and campaign as well as grievance mechanisms.

Moreover, the participants were taken to directly experience sexual harassment prevention and handling using a virtual reality (VR). As a new way to experience self-learning on sexual harassment, the VR aimed to work on behavioural changes at the individual level and to review company policies and mechanisms.

Self-learning initiative to prevent sexual harassment using a virtual reality.
The IBF concluded with the identification of persistent non-compliance such as overtime payment. Around 45 percent of the BWI’s participating factories repeatedly reported this issue. Therefore, the IBF was closed with a final session emphasizing the urgent need for a collaboration to achieve a more robust and equitable ecosystem for the entire industry.

Our sector survives and thrives because we, together with our unions or partners, work hand-in-hand to continue producing top-quality products for this industry."

Anne Patricia Sutanto, Vice Chairperson of the Indonesia’s Textile Association (API)
Andi Zuhri, a representative from Columbia Sportswear, appreciated the interactive sessions provided throughout this one-day IBF. “With in a day, we can learn about year-end reflections on achievements in 2022, with ten years of program existence and future industry challenges. It is really a fruitful event.”

Conducted since 2012, BWI aims to improve working conditions and productivity in targeted employment-intensive sectors (garment and footwear) by improving compliance with international core labour standards and Indonesian labour laws. It also aims to promote productivity and competitiveness of enterprises linked to global supply chains. BWI works with over 200 factories employing more than 400k workers in Jakarta, West and Central Java.