The ILO in collaboration with the Indonesian Employers’ Association (Apindo) organized a National Seminar on Decent Work Responsible Business in Jakarta on 5 December. The seminar aimed to improve the understanding of the world of business and its partners, including workers and governments, about issues related to decent work and responsible business.
The seminar also examined the national strategy that is linked to the newly released Presidential Regulation No. 60/2023 on Business and Human Rights. The regulation highlights the commitment of Indonesian government and business to protect and respect human rights as stipulated by international instrument of United Nation’s Guiding Principles on Business and Human Rights as well as the ILO’s Tripartite Declaration of Principles concerning Multinational Enterprises (MNEs) and Social Policy,
The ILO congratulates Indonesia for its newly released regulation on business and human rights which is connected to the ILO core conventions that highlighted human rights due diligence."
Diego Rei, Acting Director of ILO in Indonesia
Funded by the Ministry of Health, Labour and Welfare (MHLW) of Japan, the RISSC Project aims to build 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 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.
“Labour issues are also human rights issues that are strongly connected to businesses and how we conduct our businesses. Thus, the ILO congratulates Indonesia for its newly released regulation on business and human rights which is connected to the ILO core conventions that highlighted human rights due diligence,” said Diego Rei, Acting Director of ILO in Indonesia.
These three strategies are connected to one another. Through the policies mapping, we can identify policies that can be implemented by businesses and are also useful for the communities. Meanwhile, the remediation process is important to address a number of human rights violations."
Sofi Alatas, Coordinator for International Relations of the Ministry of Law and Human Rights
Introducing the presidential regulation, Sofi Alatas, Coordinator for International Relations of the Ministry of Law and Human Rights, explained that the regulation consists of three key strategies. The first strategy is on raising the awareness of relevant government institutions and businesses, second on policies mapping on business and human rights and remediation of human rights violations.
“These three strategies are connected to one another. Through the policies mapping, we can identify policies that can be implemented by businesses and are also useful for the communities. Meanwhile, the remediation process is important to address a number of human rights violations,” she said.
During a panel discussion chaired by Myra Hanartani, Chair of Apindo’s Regulatory and Institutional Relations Committee, although many companies have not yet implemented human rights due to diligence, most of principal companies under the global supply chain frame have no issue with human rights.
As admitted by Henry JW, a representative from PT Toyota Motor Manufacturing Indonesia by saying that “at company level, we have adopted a behaviour guideline to respect human rights. It is not literally written. However, the main question is whether all workers are aware of it. That’s why continuous awareness raising and regular orientation programmes have become important.”
In addition, other identified challenges included the implementation of business and human rights principles at supplier companies which have dominated by small medium enterprises. The involvement of trade union in formulating policies and implementing responsible business practices were also discussed to ensure issues related to employment contracts, minimum wages and grievance handling mechanism.
Thus, the seminar concluded with an agreement on the importance of human rights due diligence and self-assessment tools for business and human rights. “The ILO through its RISSC and Skills Development Projects will continue working with relevant stakeholders to equip companies with responsible business practices and to find joint solutions in promoting and respecting human rights not only in companies’ operations but also their supply chains,” said Tauvik Muhamad, National Coordinator of the RISSC Project in Indonesia.
Commitment of businesses to human rights and business
Prior to the seminar, a roundtable discussion with the high-level representatives of Apindo was conducted to exchange information and identify opportunities as well as challenges in complying with Decent Work Agenda, including skills development and responsible business conduct.
Aloysius Budi Santoso, General Secretary of Apindo, emphasized the commitment of Apindo on the implementation of responsible business and human rights. “We need to continue circulating the terms of business and human rights to create a business incentive and to transform cost to investment for business sustainability,” he said.
We need to continue circulating the terms of business and human rights to create a business incentive and to transform cost to investment for business sustainability."
Aloysius Budi Santoso, General Secretary of Apindo
Meanwhile, Wisnu Wibowo, Chair of Vocational Training committee of the Indonesian Chamber of Commerce and Industry (Kadin), highlighted the crucial of skills development and revitalization of vocational education as part of the responsible business practices. Similarly, Darwoto, Apindo’s Vice Chair of Employment, underscored the need for capacity building for all sizes of companies and their suppliers on principles and practices of responsible business and human rights.
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 responsible business conduct. “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.
Meanwhile regarding the key steps that should be taken to promote responsible business conduct and practices, Archana Kotecha, CEO and Founder Remedy Project, who was invited as a guest speaker reminded Apindo and Kadin to adopt human rights policy to provide a basis for embedding respect for human rights throughout the company, involve internal and external stakeholders to help companies identifying policy gaps and areas of risks and implement human rights due diligence to address adverse human rights impact and establish a grievance mechanism.
