BackgroundBeing more vulnerable to external shocks, most small and medium enterprises (SMEs) in Indonesia have been finding it difficult to sustain operations due to the global financial crisis, new ASEAN China free trade area agreement and the quality of their jobs is being compromised in the process. The large majority of employment for both women and men is found in SMEs and the key to sustainable economic development that leads to effective poverty reduction lies in competitive and growing SMEs.
Current research is showing that innovations in work organization, continuous workplace learning, good labour-management relations, and respect for workers’ rights are important ways of raising productivity while also promoting decent work. The broad problem that this project will address is how to minimize the impact of the financial crisis and tight market competition by fostering responsible and thus sustainable workplace practices – economic, social and environmental – in SMEs in order to improve their productivity and competitiveness in a manner that contributes to sustainable economic development.
SCORE aims to help Small and Medium Enterprises (SMEs) through an intensive and hands-on methodology, effective and easily implemented, so that SMEs are more productive, more competitive and cleaner, and can provide more jobs and decent work for their employees.
The development objective of SCORE is that Indonesia’s SMEs are more sustainable through being cleaner, more productive and competitive and provide more sustainable and decent employment. To achieve this, the project is expected to have achieved the following concrete outcomes by the end of the three year project:
- Industry associations can market and coordinate enterprise upgrading services to their local members.
- Service providers can effectively deliver training and advisory services for workplace upgrading on a commercially sustainable basis.
- Labour inspectorate services work with mass media to disseminate progressive workplace practices.
Upon the successful implementation of the SCORE Phase I, SCORE Indonesia is doing the expansion of program activities from the Auto Parts sub-sector to other industries and to other area in year two of programme implementation. The area are: Central Java (Semarang), East Java (Surabaya), South Sulawesi (Makassar), East Kalimantan (Samarinda), Lampung (Lampung) and South East Sulawesi (Kendari).
SCORE Phase II project approval.
In collaboration with the OECD, ILO SCORE has conducted two successful workshop in Bangkok and Turin with policies maker from several countries on how to improve the productivity and working condition in SMEs.
SCORE Indonesia, together with the constituents will replicate the event in May 2016. And for the workshop, several preparation meeting is needed.