Future of Work Initiative

ILO hosted an initial discussion on future of work initiatives in Indonesia

The world of work is undergoing a major process of change. There are several forces transforming it, from the onward march of technology , the impact of, and responses to climate change, to the changing character of production and employment, to name a few.

News | Jakarta, Indonesia | 07 November 2016
Future of work discussion involving tripartite constituents in Indonesia
The world of work is undergoing a major process of change. There are several forces transforming it, from the onward march of technology , the impact of, and responses to climate change, to the changing character of production and employment, to name a few. In order to understand and to respond effectively to these new challenges, the ILO has launched a “Future of Work initiative” in June 2015.

In support of the initiative, the ILO hosted an initial discussion among key partners and constituents on the future of work in Indonesia titled “The Future of Work Initiative: Transformation Affecting the Labour Market in Indonesia, on 3 November, in Jakarta. This discussion is part of a series of forums on the future of work to be conducted in order to further explore and understand what the perspectives and future vision would be like for Indonesia.

Attended by around 50 representatives from governments, workers’ and employers’ organizations, academia and civil society organizations, this first series of discussion focused on the green economy, as well as climate change measures and impacts on the labour market as one of the key three main drivers affecting the future world of work. The other two main drivers were technology and globalization.

We should prepare our world of work to be ready to adapt the new changes in the future. We should be able to follow the fast development of technology. Thus, we need to focus on new skills development and improvement as there should be changing knowledge and skills related to environment in this case."

Kunjung Masehat, Secretary of Director General for Empowerment, Training and Productivity, Ministry of Manpower
Lurraine Villacorta, Advisor of ILO Green Jobs Programme and Dr Xin Zhou, a senior researcher from the Institute for Global Environment Strategies (IGES)
Relevant inputs and key findings on the subject were presented. Lurraine Villacorta, Advisor of ILO Green Jobs Programme emphasized that relevant response measures such as those included in the Indonesia’s climate change policies (currently now called the NDC) are among the key drivers for the changing nature of work in Indonesia.

“This transition to socially and environmentally sustainable economies, if managed well, can drive job creation, job upgrading, social justice and poverty eradication. And, key to this transition is understanding the linkage between the labour market and green economy policies,” she said.

Key findings on a recent study to assess the labour market impacts of Indonesia’s climate policies, including the national targets for emission reduction until 2030, embodied in the NDC were presented by Dr Xin Zhou, a senior researcher from the Institute for Global Environment Strategies (IGES). The study was conducted together with the ILO Green Jobs Program and ILO Indonesia.

The study shows that with Indonesia's commitment for lowering its emission targets by 2020 and 2030, key sectors will likely see employment impacts in the energy, chemical and non-metallic manufacturing sectors. The findings point to gains in employment in all labour factors for the renewable energy sector, specifically the electricity generation from geothermal and hydro energy sources.

The renewable energy is still expensive and this will affect the productivity and competitiveness of Indonesian companies. To anticipate this, we need to work together and to change our behaviour towards technology, work management as well as work attitude to support the implementation of green economy."

Agung Pambudhi, Executive Director of the Indonesian Employers’ Association (Apindo)
The study also notes that the positive employment impacts can be maximized through proactive labour market policies and responses, particularly if skills requirements are met, allowing displaced workers to be absorbed in the expanding sectors.

Kunjung Masehat, Secretary of Director General for Empowerment, Training and Productivity, Ministry of Manpower
Responding to the findings, Kunjung Masehat, Secretary of Director General for Empowerment, Training and Productivity, Ministry of Manpower, emphasized the importance of skills development and trainings for all key labour actors—government, workers and employers—as an effort to smooth the transition and adaption to new changes of the future.

“We should prepare our world of work to be ready to adapt the new changes in the future. We should be able to follow the fast development of technology. Thus, we need to focus on new skills development and improvement as there should be changing knowledge and skills related to environment in this case,” he said, adding that Indonesia is now in the process of developing models on, among others, waste management and shifting to renewable energy sources.

It is true that that we need to anticipate skills development. However, we need to maximize job creation and minimize job losses."

Agus R. Toniman, National Council of the Indonesian Trade Union Confederation (KSPI)
Agung Pambudhi, Executive Director of the Indonesian Employers’ Association (Apindo)
From the perspective of the employers, Agung Pambudhi, Executive Director of the Indonesian Employers’ Association (Apindo), highlighted the challenges faced by enterprises in utilizing renewable energy. “The renewable energy is still expensive and this will affect the productivity and competitiveness of Indonesian companies. To anticipate this, we need to work together and to change our behaviour towards technology, work management as well as work attitude to support the implementation of green economy,” he said.

Agus R. Toniman, National Council of the Indonesian Trade Union Confederation (KSPI)
Meanwhile, Agus R. Toniman, National Council of the Indonesian Trade Union Confederation (KSPI), reminded that all the changes that would happen in the future should, at the same time, guarantee the welfare of workers. “It is true that that we need to anticipate skills development. However, we need to maximize job creation and minimize job losses,” he stated.

In addition to Indonesia, more than 60 countries around the world are currently planning consultations with their relevant actors about this. It is planned that in 2017 and 2016, a High-Level Global Commission on the Future of Work would be established and conduct its work.

The goal of the Future of Work is to generate a shared understanding of the forces transforming the world of work and to equip governments, employers and workers with the knowledge, ideas and policy alternatives to advance the cause of social justice as the ILO enters its second century of work.