Decent work and responsible business practices in Indonesia's electronics manufacturing sector

Produced by the ILO-Japan Resilient, Inclusive and Sustainable Supply Chains project (RISSC), this report provides a comprehensive analysis of Indonesia’s electronics industry, focusing on decent work and responsible business conduct in the key manufacturing segments of the supply chain (i.e. component manufacturing and final product assembly). It comes amid growing domestic and international attention on human rights impacts arising in business operations and supply chains.

Based on both authoritative secondary data and original interviews and focus groups with leading industry stakeholders, the study explores major forces and trends shaping the sector today, both domestic and international, while identifying key challenges and gaps in achieving decent work through responsible business conduct. Findings underscore the need for enhanced social dialogue -at various levels in the sector- to tackle longstanding decent work deficits, together with improved labour compliance and inspection, and a stronger industry-wide commitment to responsible business, especially -but not only- in upstream segments where enterprise capacity and incentives are often lacking.

To help spur action in the sector, the report also proposes a number of practical, stakeholder-specific recommendations to strengthen competitiveness and sustainability in the Indonesian electronics industry, with responsible business and Decent Work at its core. These recommendations—validated by tripartite constituents and industry stakeholders at an ILO-led workshop in Dec 2023—are now being followed up through various workstreams of the RISSC project and ILO office in Indonesia.