Industrial Relations Policy Forum

Sustainable and Responsible Business Practices within Enterprises: Pathways to Enhancing Industrial Relations in Indonesia

Among the different business mandates, industrial relations is emerging from the side-lines of business concerns, as a key strategy for enterprise transformation, particularly when the intent is to capitalize on the ‘human’ component, collaboration and the social aspects of its operations.

Background and Rationale

Among the different business mandates, industrial relations is emerging from the side-lines of business concerns, as a key strategy for enterprise transformation, particularly when the intent is to capitalize on the ‘human’ component, collaboration and the social aspects of its operations. This opens new opportunities for enterprises to respond to challenges, deliver value while maximizing technology and financial resources which, at some time, could be a constraint.

Nowadays, industries also realize that these challenges cannot be addressed in isolation, economic issues impinge on the social, including environmental dimensions, and if left unchecked, can lead to counter productivity and conflicts. There are also interconnected effects, such as how an improvement in environment and safety aspects of operations can bring about improved workplace conditions resulting to employee motivation, better productivity, which in turn raise economic performance.

The same can be observed when companies faced with difficult decisions had to address its losses by compromising on its social responsibilities and ending up with a knockdown effect on its overall performance. With added layers of complexity brought about by chain operations, global markets, and virtual connectivity, one can just imagine the wide-ranging impacts. These complex challenges currently affect the world of work, calls for innovative response measures and alternative approaches to be explored.

Against the background of slowing global and national economies, a degraded resource base due to unsustainable business practices, and further threats brought about by an inevitable change in climate and conditions (which is also a repercussion of previous irresponsible practices,) the only way for industries to survive and thrive, is to change from ‘Business As Usual’ and improve its delivery of economic, social and ecological values to the whole society. This anticipates transformations and transitions in production (and consumption) patterns, industry relations, supply chain interactions, markets, governance systems and performance indicators.

These realities are eventually affecting most Asian countries and Indonesia is no exception. Despite a stellar track record in the past 10 years of demonstrated resilience, delivering a steady above 5% average GDP growth, Indonesia is likewise being affected by the current financial volatility and economic slowdown in the region. Industries in Indonesia must continue to strategize and harness all its potentials, allowing it to better brave through the current challenges, recover its growth momentum and plan for resilience and calibrated expansions.

Industry is the country’s engine of growth, and when these operate according to sustainable and responsible practices, the gains achieved translate to improve the lives of people, improved productive capacities and more economic opportunities for the rest of Indonesians, across the more than 17,000 islands within the country's mandate.

Objectives

The seminar is the ‘national level’ version of the recently concluded 7th Regional Tripartite Industrial Relations (IR) Seminar, held in Chiba, Japan. Carrying forward the theme, “Promoting Social Dialogue within Enterprises”, the full day program will share the highlights of the current IR situation in the ASEAN region, and deliver localized the knowledge sharing and panel discussions on current trends and good IR practices in Indonesia.

Specific objectives for the seminar include:

  • Sharing of the highlights and key content from the 7th Regional Tripartite Seminar on IR
  • Showcase and raise awareness on possible sustainable and responsible business practices that enterprises in Indonesia can implement which also enhances workplace conditions and industrial relations.
  • Explore alternative approaches to supporting harmonious IR within enterprises through learning from experience in the Asian region.
  • Discuss and re-affirm the positive role of Industrial Relations in delivering inclusive economic growth at the national, industry and workplace levels in Indonesia
  • Convene key partners and stakeholders and engage them to promote these practices & approaches to industry.