Establishing partnerships on skills development as a foundation for more RBC in Indonesia

More Background

26 February 2025

The ILO project uses a sector-specific supply chain approach to support ILO tripartite constituents and key stakeholders in the electronics sector to promote more resilient, inclusive and sustainable supply chains through skills upgrading so that more responsible business conducts and practices are promoted and ultimately mainstreamed in the sector because of this.

The ILO project aims to achieve three main objectives:

  1. To advance skills development so that improves workers’ adaptability and productivity, facilitating structural transformation towards an economy that is sustainable, respects human rights, and aligns with national development priorities.
  2. To promote public-private partnerships so that facilitate skills development interventions that adhere to responsible business conduct principles within the supply chain.
  3. To cultivate a policy and practice landscape that enhances supply chain resilience through improved trade and investment strategies.

Following international labour standards and frameworks, including the United Nations’ Guiding Principles on Business and Human Rights (UNGPs), the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises on Responsible Business Conduct, and the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO MNE Declaration), skills development becomes a central in increasing enterprises productivity and competitiveness, improving workers’ employability and career development prospects and ultimately promoting greater compliance with responsible business conducts. For this, the ILO MNE Declaration highlights that business activities of multinational enterprises (MNEs) should be aligned with national laws and integrated with the economic and social development plans of the host countries. These priorities and objectives are encapsulated in the in the Decent Work Country Programme (DWCP) signed between the ILO and the government of Indonesia, which outline strategic actions such as skilling, reskilling and upskilling tailored to foster employment quality, rights at work, social protection, and social dialogue. This approach ensures that MNEs and their suppliers not only comply with legal frameworks but also contribute to socio-economic development while contributing to preserve the environment, enhancing their role in achieving inclusive and sustainable development through responsible business practices.