BackgroundOn the tripartite conference and high level dialogue organized in February and August 2016, respectively, the tripartite constituents in Indonesia agreed that social protection is one of priorities on Indonesia’s agenda for Sustainable Development Goals (SDGs) toward Decent Work for All. The tripartite constituents invited the ILO to provide technical assistance and facilitate dialogue on several key areas of actions, including extending social security coverage to informal economy and unemployment insurance.
As a follow up, the ILO will organize a workshop on both issues on the 27 and 28 September 2016 in Bogor, West Java. The first day of the workshop will focus on social protection coverage for informal economy and setting priorities, and the second day of the workshop will facilitate knowledge exchange on unemployment insurance.
Extending Social Protection Coverage for Informal WorkersThe high incidence of informality continues challenging the labour market in Indonesia, including a lower social security level. The National Mid-Term Development Plan 2015-2019 reaffirms the country’s commitment that recognized the right to social security for all. The country has invited the ILO to also support on extending social security for informal workers. Through the ILO/Japan Project on Extending social security coverage in ASEAN (2016-2018), the ILO will work closely with national stakeholder to generate better knowledge, understanding and expertise on extension of social security, and stimulate South-South cooperation across ASEAN Member States.
Unemployment InsuranceThe introduction of unemployment insurance system could be an important measure in providing income compensation and support to return to work to the unemployed. The ILO Conventions on unemployment benefits, i.e. Social Security (Minimum Standards) Convention 1952 (No.102), Employment Promotion and Protection against Unemployment Convention, 1988 (No.168) and Employment Promotion and Protection against Unemployment Recommendation, 1988 (No.176) offer guidelines to development unemployment protection systems linked to employment promotion. Moving from severance pay to unemployment insurance may have high relevance to adapt to evolving labour markets in the ASEAN countries. In fact, several ASEAN countries have started social dialogue to implement an unemployment or employment system.
ObjectiveThe Dialogue has three main objectives:
- To introduce the ILO’s work for the extension of social protection to workers of the informal economy, micro- small and medium enterprises and self-employed in ASEAN, and in Indonesia in particular.
- To strengthen knowledge for a more informed dialogue on social protection among key stakeholders.
- To exchange knowledge on unemployment insurance.