Development cooperation

ILO and Fast Retailing group join forces to promote employment and social protection in Indonesia

The International Labour Organization (ILO) and the Japanese apparel retail holding company Fast Retailing have signed a US$1.8 million partnership agreement supporting an ILO led programme to promote employment and social protection in Indonesia.

News | Jakarta, Indonesia | 04 September 2019
Jakarta, Indonesia (ILO News) - The International Labour Organization (ILO) and Fast Retailing, parent of the Japanese global apparel retailer UNIQLO, signed a new partnership to promote social protection and active labour market policies that cover employment insurance, vocational training, and employment services.

It is the largest private sector funded project among ILO's social protection interventions as of today.

The partnership will support a two-year project promoting social protection, skills development and employment support. The project aims to:
  • Ensure a minimum income and prevent unemployed workers and their families from falling into poverty;
  • Facilitate the return to employment as soon as possible through employment services;
  • Upgrade skills and capabilities for better employability in a changing labour market;
The ILO will also conduct a comparative study of workers’ protection against unemployment in Bangladesh, Cambodia, China, India, Indonesia, Myanmar and Viet Nam. The results will inform policymakers and stakeholders across Asia.

“This programme will combine social protection with industry-led training and jobs services to mitigate the impact of economic restructuring and labour reforms on workers,” said Michiko Miyamoto, ILO Country Director for Indonesia, emphasizing the importance of integrated approach to address unemployment and working poverty.

Indonesian workers, especially garment-manufacturing workers, are at high risk of job displacement due to the rapidly shifting employment needs of the country’s evolving economy. Female workers, who are over-represented in garment factories, are particularly at risk of falling into poverty. “This project could also help women shift sectors, acquire new skills, develop their own business, which would be judicious, considering women spend more on their family’s welfare and education for children.” Michiko Miyamoto said.

The ILO will engage with all key stakeholders including social partners - trade union confederations and Indonesian employers’ organization (APINDO) - as well as relevant government Ministries and agencies - Ministry of Manpower, the Ministry of National Development Planning, the Coordinating Ministry of Economic Affairs, social security agency (BPJS Ketenagakerjaan), and public vocational training centers (Balai Latihan Kerja).

“Strengthening social protection of workers is a priority of the government.” Said Haiyani Rumondang, Director General for Industrial Relations and Social Security of the Ministry of Manpower: “This project is timely because the national tripartite council (LKS tripnas) requested ILO’s technical assistance on social protection reform. Technical inputs from the project will assist the evidence-based discussion and decision-making by the Council.”

Tomoko Nishimoto, ILO's Assistant Director-General and Regional Director for Asia and the Pacific, welcomed the new partnership: “Building on ILO’s 100 years of experience and knowledge on the world of work, the impact of social protection on human capital and social development as well as enterprises sustainability and economic growth is now widely recognized. While we witness a positive momentum in Asia towards more inclusive social protection, this partnership can help accelerate and scale up the coverage of social protection in the region, lifting millions of lives out of poverty.”

Contact details for further information

Gita Lingga
ILO’s Communication Officer
Tel.: +6221 3913112 ext. 115

About the ILO

The International Labour Organization (ILO) is the United Nations agency for the world of work. Devoted to advancing social justice, it promotes a Decent Work Agenda based on four strategic pillars: rights at work, decent employment opportunities, social protection and social dialogue.