ILO: Better Work Indonesia Programme Launch Phase 2

The Indonesian garment industry has enjoyed rapid growth, significantly contributing to the national economic growth by providing more than one million jobs and accounting for one of the primary state revenues.

8 February 2013

Content also available in: Bahasa Indonesia
BANDUNG (ILO News): The Indonesian garment industry has enjoyed rapid growth, significantly contributing to the national economic growth by providing more than one million jobs and accounting for one of the primary state revenues.

The garment industry in Indonesia has demonstrated a growth rate of more than 8 per cent annually. This is primarily due to a significant number of factory relocations from China to Indonesia and other countries in Asia. During 2011, the garment industry in Indonesia managed to achieve garment exports worth more than USD 6 billion to other regions in Europe and the United States.

Better Work Indonesia is part of the Better Work Global Programme and one of the country projects under the ILO, which aims to improve both labour standards compliance and competitiveness in the apparel industry through advisory and training services tailored to the requirements of each factory. 
Despite the rapid economic growth in this sector, the industrial relations in Indonesia often encounters a number of issues both at the employer and worker levels. Employers in the garment industries often face various challenges in integrating labour standards into the production process as part of their accountability, in order to achieve a feasible business. Meanwhile, workers deal with issues ranging from job insecurity, short-term employment contracts, social security, to name a few.

Therefore, in conjunction with the improvement of garment industry developments in Indonesia, while assisting businesses, the Ministry of Manpower and Transmigration in collaboration with the ILO-Better Work Indonesia programme organised an interactive discussion in line with the dissemination of the Minister of Manpower and Transmigration Regulation No. 19/2012 regarding the terms of contracting job performance to other companies (outsourcing) and Minister of Manpower and Transmigration Regulation No. 20/2012 regarding the Employee’s Social Securities.

The interactive discussion was organised on Friday, 8 February 2013 at the Riviera Meeting Room I, the Luxton Hotel in Bandung, West Java. This discussion is part of the Better Work Indonesia Phase 2 Programme Launch in West Java.

Better Work is a unique collaboration programme between the ILO and International Finance Corporation (IFC). Better Work Indonesia (BWI) is funded by the Government of Australia through the Australian Agency for International Development (AusAID), the United States Department of Labor and the Netherlands Ministry of Foreign Affairs.

Better Work Indonesia is part of the Better Work Global Programme and one of the country projects under the ILO, which aims to improve both labour standards compliance and competitiveness in the apparel industry through advisory and training services tailored to the requirements of each factory. The BWI Programme started in 2011 with the focus on the JABODETABEK area: Purwakarta, Subang and Karawang. Currently, there are 71 garment enterprises enrolled in the BWI Programme and more than 100 factories which are aware of the existence of the programme in Indonesia.

Presently, BWI is embarking on its second phase of programme implementation and expanding its operational coverage both in West Java and Central Java.
Simon Field, the BWI Programme Manager states: “West Java and Central Java Provinces are the primary producers of the garment industry in Indonesia. Therefore, BWI presence in such regions is expected to play key contributions in conjunction with assisting to improve the compliances toward labour standards and enhance the competitiveness as well as productivity in the garment industry.”

Mr Field further expresses that through the Better Work Indonesia programme, the actual collaboration among the government, employers, workers as well as international buyers may be achieved in conjunction with the enhancement of compliances toward labour standards and sustainable improvement for the garment industry in Indonesia.

To learn more about Better Work Indonesia, please visit:
Website: www.betterwork.org/indonesia
Facebook: Better Work Indonesia
Twitter: @betterworkindo

For further information, please contact:
Ms Josephine Imelda
Communication and Knowledge Management Officer, ILO Better Work Indonesia
Tel.: +6221 391 3112
Email