ILO promotes investment in skills development for Responsible Business Conduct in Indonesia

The ILO has established a three-year project initiative to support a human-centred recovery from recent disruptions in the global supply chains. The project is funded by the Ministry of Economy, Trade and Industry (METI) of Japan.

News | Jakarta, Indonesia | 16 October 2023
The world is experiencing a phase of substantial changes. All sectors of employment are going through structural transformations. As a result, some positions may be eliminated entirely but other new jobs are emerged,

An apprenticeship programme for students to be prepared working at the electronics industry. (c) ILO/Feri Latief
In responding to the industrial transitions as well as the digital transformation and green transition of economy, particularly in Indonesia, the ILO has a new regional project in Indonesia titled “Skills Development and Responsible Business Conduct”. Funded by Ministry of Economy, Trade and Industry (METI) of Japan, the project aims at supporting a human-centred recovery from recent disruptions in the global supply chains.

Running until the year of 2025, the project covers two countries: Indonesia with a focus on electrical and electronics industry and Thailand with a focus on automotive sector. In both countries, the project aims to provide skills development of workers, promote responsible business conduct (RBC) and promote an environment that contributes to a transition to resilient value chains in Indonesia.

By ensuring that workers at every level of the supply chain are adequately trained, businesses can establish a standard of operation that respects human rights. a skilled workforce can lead to reduced dependencies on precarious employment practices, thereby indirectly strengthening the respect for human rights throughout the supply chain."

Dede Sudono, National Project Officer for Skills Development and Responsible Business Conduct in Indonesia
According to Dede Sudono, National Project Officer for Skills Development and Responsible Business Conduct in Indonesia, skills development lies at the core of any progressive business strategy, especially in the context of RBC. “When companies invest in enhancing their workers' skills, they send a clear message stating that they are committed to their workforce's holistic growth and not merely to their immediate outputs. This respect for personal and professional development naturally aligns with the tenets of responsible business conduct and can be viewed as a step towards the broader umbrella of RBC,” she said.

Therefore, to promote the importance of companies’ investment in skills development, the project will develop a package of awareness-raising materials on RBC and skills development, demonstrating how skills development is intricately linked with human rights due diligence, promoting decent work, reducing vulnerabilities, and ensuring workplace safety. The project will also develop a collaboration among significant stakeholders at the different levels of supply chains.

“By ensuring that workers at every level of the supply chain are adequately trained, businesses can establish a standard of operation that respects human rights. a skilled workforce can lead to reduced dependencies on precarious employment practices, thereby indirectly strengthening the respect for human rights throughout the supply chain,” Dede added.

In addition, the project will improve the quality of inhouse training for upskilling and reskilling including the quality of work-based learning in the workplace (for example: apprenticeship, internship and on-the-job training programmes) through work-based learning guideline development, training, social dialogue and industrial relations, which in turn will contribute to improved working conditions and overall enterprise performance and productivity.

Dede Sudono, National Project Officer for Skills Development and Responsible Business Conduct, introduces the Indonesian electronic companies on how skills development is intricately linked with human rights due diligence. (c) ILO/Gita Lingga
At the end of the project, it is expected that constituents will be able to strengthen their tripartite and bipartite social dialogue towards better working environment, improved capabilities of technical and vocational education and training to provide re-skilling and up-skilling training programme and increased capacity of enterprises to meet productivity requirements alongside decent work and environmental sustainability through inhouse, activity-based improvement programmes.

One of the key elements of RBC is investing in the human capital. The collaboration with these various institutions will accelerate the development of a well-equipped, trained, and skilled workforce as the backbone of the enterprise that will not only simultaneously improve productivity and quality but also access to social protection and fairer wages."

“The project also expects increased capacity of enterprises to comply with national laws and respect human rights, including the fundamental principles and rights at work and other labour rights, as well human rights due diligence in line with the UN Guiding Principles on Business and Human Rights and the ILO Multinational Enterprises and Social Policy Declaration (MNE Declaration),” she continued.

The project will closely collaborate with various partners including the Coordinating Ministry of Economic Affairs, the National Committee for Vocational Reformation, industries and business organizations, trade unions as well as Japanese constituents and stakeholders.

“One of the key elements of RBC is investing in the human capital. The collaboration with these various institutions will accelerate the development of a well-equipped, trained, and skilled workforce as the backbone of the enterprise that will not only simultaneously improve productivity and quality but also access to social protection and fairer wages,” Dede concluded.