National stakeholders welcome the implementation of ILO projects on responsible business and decent work

The ILO new projects on responsible business and decent work are in line with Indonesia’s target to become a developed country in 2045.

News | Jakarta, Indonesia | 06 October 2023
Dr. Rudy Salahuddin, Deputy Minister for Coordination of Digital Economy, Employment and Micro-, Small-and Medium-sized Enterprises of the Coordinating Minister for Economic Affairs (third from the left) is chairing the stakeholder meeting to introduce the implementation of ILO projects on responsible business and decent work. (c) ILO
Dr. Rudy Salahuddin, Deputy Minister for Coordination of Digital Economy, Employment and Micro-, Small-and Medium-sized Enterprises of the Coordinating Minister for Economic Affairs, welcomed the implementation of the Resilient, Inclusive and Sustainable Supply Chains Asia (RISSC) Project and the Skills Development and Responsible Business Conduct Project in Indonesia. These two projects will be running respectively until the year of 2026 and 2025.

The Government of Indonesia welcomes the implementation of these projects as they are in line with our target for the year of 2045 to become a developed country. These projects will contribute to improve nation’s prosperity and productivity through responsible business practices and human capacity-building as well as development in science and technology which is the driver of work in the future."

Dr. Rudy Salahuddin, Deputy Minister for Coordination of Digital Economy, Employment and Micro-, Small-and Medium-sized Enterprises of the Coordinating Minister for Economic Affairs
Funded by the Government of Japan-Ministry of Health, Labour and Welfare (MHLW), the RISSC Project aims to build to more resilient, inclusive, and sustainable global supply chains for advancing decent work and addressing decent work deficit, including human and labour right risks; while the Skill Development and Responsible Business Project, funded by the Ministry of Economy, Trade and Industry (METI) of Japan, aims at supporting a human-centred recovery from recent disruptions in the global supply chains. They both also focus on the electronics manufacturing sector.

“The Government of Indonesia welcomes the implementation of these projects as they are in line with our target for the year of 2045 to become a developed country. These projects will contribute to improve nation’s prosperity and productivity through responsible business practices and human capacity-building as well as development in science and technology which is the driver of work in the future,” said Deputy Minister Rudy during a stakeholder meeting to introduce and share the information about the implementation of these projects on responsible business and decent work.

The meeting concluded with the establishment of the Joint Project Advisory Committee (JPAC) aimed to provide a strategic policy and technical advice as well as practical guidance to ensure effective implementation of these two projects in Indonesia. In addition to the ILO’s tripartite constituents, the JPAC consists of relevant national stakeholders and will chaired and will be chaired the Deputy Coordinating Ministry of Economic Affairs as well as co-chaired by the Deputy Coordinating Ministry of People Empowerment.

“The close involvement of relevant stakeholders at the country level aims to ensure that these projects remain aligned with and supportive of national and industry priorities and, where relevant, help them to navigate and adapt to changes within the national policy environment, particularly related to the electronics sector and their supply chains,“ Rudy added.

Michiko Miyamoto, Country Director of the ILO in Indonesia, pointed out that: “Targeting the electronics sector, the main aims of these two projects are to increase employment opportunities and encourage responsible business practices in accordance with international standards. To realize these goals, a tripartite coordination mechanism needs to be established that will ensure national stakeholders can contribute to and benefit from these projects.”

Participants of the meeting agree to establish the Joint Project Advisory Committee (JPAC). (c) ILO

To realize these goals, a tripartite coordination mechanism needs to be established that will ensure national stakeholders can contribute to and benefit from these projects."

Michiko Miyamoto, Country Director of the ILO in Indonesia
The meeting concluded with the additional support from the Ministry of Law and Human Rights which acts as a national focal point for business and human rights. The Ministry has developed local tasks forces in 33 provinces and the synergy will be built with the projects to support existing government programmes, including the application of the national due diligence platform called PRISMA which aims to asses companies’ operational risks related to human rights abuses, from land affairs to deforestation and forced eviction to labour rights.

The stakeholder meeting was attended by, among others, representatives of the Coordinating Ministry for Economic Affairs, Ministry of Human Development, Ministry of Manpower, Chamber of Commerce and Industry (Kadin), the Indonesian Employers’ Organization (Apindo) and the Confederation of All Indonesian Trade Unions (KSPSI) and the Confederation of Muslim Trade Unions (K-Sarbumusi) as well as the Electronics Sector Employers’ Association.

The electronics sector has important potential for Indonesia in the future, to create jobs for absorbing and utilizing the demographic bonus. The electronics manufacturing industry today contributes to USD 7.8 billion in total export values and employs an estimated 260,000 workers in segments that include home appliances, computer electronics, optical products, and electrical equipment. Despite its potential, the electronics industry faces some significant decent work challenges, including excessive working hours and gaps in social security coverage, insecurity of employment tenure, and ongoing occupational safety and health (OSH) risks in the workplace.