COUNTRY REPORT INDONESIA Training for Youth Trade Union Leaders on Organizing and Collective Bargaining for Decent Work ( A3-56349 ) Marina Boulevard - Singapore, 13~16 - Aug - 2013 Reported by : MUJI RAHAYU Deputy President of Programme F-Lomenik SBSI [email protected] Hp. 0821 1001 8152

Outline of Indonesia and Its 3 Features 1. 4th largest in population: 244.775.796 (after China, India and USA) 2. Low electricity coverage (57.5%), households with 450W & less is 63% 3. Monthly households expenditure: US$ 150 (or Rp. 1.5 Million) & less occupies 68% Land Population (2012) Households

Races Monthly Household Expenditure (2012)

Rp. 2.0M ~ 3.0M (US$ 200 ~ 300) Rp. 1.5M ~ 2.0M (US$ 150 ~ 200) ~ Rp. 1.5M (~ US$ 150) Source: AC Nielsen 2011

• 244.775.796 (4th largest) • 59.9 million (4.0 persons/HH) • 300 races (Malay principal) • Chinese: 6 million

Religion

• Islam (85%) • Christian (12%) • Hindu, Buddhism ( 3 % )

Economic Indicators ( 2012)*

• GDP: US$ 867.56billion • GDP growth: 6.49% • GDP per capita: US$ 3.469 • Inflation: 4.5%

US$ 1 = Rp. 10,000 Rp. 3.0M ~ (US$ 300 ~)

• 18,110 islands • Rich in natural resources, agriculture & marine products

6% 11%

US$ 150 and less is 68%

15% 68%

Source: BPS 2012, PLN (Indonesia Power)

Indonesia in Context During the last fifteen years, the Republic of Indonesia has undergone a major economic and political transformation leading to a more democratic and strengthened rights-based system supported by labour market, labour law and social security reforms that have changed the landscape of Decent Work. Indonesia adopted several key Acts (the Act No.13 of 2003 concerning Manpower, Act No. 21 of 2000 concerning Trade Unions, Act No. 2 of 2004 concerning Industrial Disputes Settlements, as well as Act No. 40 of 2004 concerning National Social Security System) to advance the national legal framework. Indonesia also completed the ratification of all eight ILO core conventions during this period. Major Issues related to the human and trade union rights are Precarious Works ( Daily Contract & Outsourcing ) , Union Busting ( especially at EPZ ) ,Criminalization of Trade Union Activist .

Issue and Challenges • Monitoring

• • • • • •

Implementation of Health Insurance universal coverage staring from 1st January 2014 & Mandatory Pension for Formal Workers start from 1st July 2014 as mandate of Act no 24 years 2014 & Act no 40 years 2004. Struggle for Decent Wage by revise Kep Men no 17 years 2005 at July 2012 and Struggle for Sector Minimum Wage at Batam & East Java . Against Precarious works especially Outsourcing and Subcontract workers Industrial Dispute will full negotiate at bipartite but if employers return back will report to embassy and build International Solidarity . Escort cases at Industrial Tribute cause some broker and ad-hock judges broken the justice . Empowerment Goverment Labor Inspector cause un skill inspector and not enough power to do law enforcement . Monitoring working condition at some Special Economic Zone ( SEZ) such as Batam & Bintan Island ,Banten ,West Java ,East Java and make program organize un organize workers .

Indonesia DWCPs Priority and Outcomes The DWCP 2012-2015 reaffirms the following three priority areas: employment creation, industrial relations and social protection, with their corresponding outcomes, strategies, indicators and targets. It reflects the current socio- economic context, national priorities of Indonesia,11 and the ILO mandate and the priorities of the ILO Constituents. A. Employment creation for inclusive and sustainable growth ; 1. Mainstreaming of employment in macroeconomic, labour and social policies through sound labour market analysis and tools. 2. Improved policies and programmes to better equip young women and men entering the world of work. 3. Optimized employment outcomes of public and community investments. 11 RPJMN 2009-2014 set the target for growth by 7 per cent, un-employment 5-6 per cent, and poverty 8-10 per cent at the end of 2014. It also referred to Renstra (Strategic Planning) of MoMT 2009-2014.

Cont’d...

4. Improved policies and programme on entrepreneurship, business and cooperative development for job creation including financial inclusion. 5. Workers’ skills are upgraded through demand-based and competency-based training to better meet the labour market needs. B. Sound industrial relations in the context of effective employment governance ; 1. Labour administration provides effective services to improve working conditions and environment. 2. Tripartite constituents effectively engage in social dialogue to apply labour regulations and international labour standards. 3. Strengthened institutional capacity of employers and workers’ organizations to contribute to sound industrial relations according to their respective mandates and responsibilities.

Cont’d...

C. Social protection for all ; 1. Government and social partners have greater capacity in designing and implementing social protection policies and programmes. 2. Barriers to employment and decent work are addressed, particularly gender gaps and for persons with disabilities. 3. Effective implementation of the National Action Plan for the Elimination of the Worst Forms of Child Labour. 4. Enhanced policy, institutional framework and programme implementation for empowerment and protection for Indonesian migrant and domestic workers. 5. Integrated HIV policies and programmes for women and men workers.

Indonesia GDP GROWTH

Indonesia’s economy is heavily export oriented ,ralying extensively on manufacture( 26 % of GDP );mining and quarrying (7.8 %of GDP );agriculture ( 13 % of GDP ) as growth engines.

Social Security

1.Presiden

publish Health Insurance regulation for all people & Regulation of covered fee for poor people (PBI ) 2. PBI Rp 22.000,-/year ( for poor poeple ) start at 1 Jan 2014

Minimum Wage

1.2012 vs 2013

Minumum wage increasing 43 %~ 58 % ( Calculate by 125% from decent living cost/KHL ) 2. Minimum Wage 2014 Survey use 84 ~ 120 Item KHL ( Revision Kepmen no 13 year 2012 ,60 item become 84 item KHL )  Precarious Work ( Illegal Outsourcing)

1.Ministry publish new rule ( Per Men no 19 year 2012 about Outsorcing is

allowed only for five Sector ) 2. Change status outsourcing become permanent or direct contract more than 40 .000 workers because Hostum Action during June ~ October 2012 .

No

Provice/City/Region

UMP/K 2012 ( Before )

( After ) Target

UMP/K 2013 Result

Increasing %

1 DKI Jakarta

Rp1.529.150

Rp2.350.000

Rp2,200,000

43.87

2 Kab/Kota Bogor

Rp1.269.320

Rp2.000.000

Rp2,002,000

57.72

3 Kota Depok

Rp1.424.797

Rp2.200.000

Rp2,042,000

43.32

4 Kab/Kota Sukabumi

Rp885.000

Rp1.900.000

Rp1,021,020

35.71

5 Kab/Kota Tangerang

Rp1.529.150

Rp2.300.000

Rp2,203,000

44.06

6 Kab/Kota Bekasi

Rp1.491.000

Rp2.300.000

Rp2,100,000

42.86

7 Kab Karawang

Rp1.269.227

Rp2.200.000

Rp2,000,000

57.58

8 Kab Purwakarta

Rp1.047.500

Rp2.000.000

Rp1,693.167

61.64

9 Kab Subang

Rp882.500

Rp1.800.000

Rp1,005,000

13.88

10 Kota Serang

Rp1.410.000

Rp1.900.000

Rp2.080.000

47.51

11 Kota Cilegon

Rp1.481.000

Rp2.000.000

Rp2.200.000

48.54

12 Kota Cimahi/Bandung

Rp1.271.625

Rp1.900.000

Rp1,538,703

21

13 Kab/Kota Semarang

Rp991.500

Rp1.500.000

Rp1.209.100

21.95

14 Kab Sidoarjo

Rp1.428.648

Rp2.200.000

Rp1.720.000

37.38

15 Kota Surabaya

Rp1.425.000

Rp2.200.000

Rp1.740.000

37.78

16 Kota Gresik

Rp1.567.845

Rp2.200.000

Rp1.740.000

38.42

17 Kab Mojokerto

Rp1.405.000

Rp2.000.000

Rp170.000

37.76

18 Kab/Kota Pasuruan

Rp1.492.706

Rp2.000.000

Rp1.740.000

37.78

19 Kota Batam

Rp1.402.000

Rp2.200.000

Rp2.040.000

45.50

20 Kota Medan

Rp1.197.000

Rp1.900.000

Rp1.650.000

37.85

21 Kota Deliserdang

Rp1.197.000

Rp1.900.000

Rp1.500.000

25.3

MPBI

( Majelis Pekerja Buruh Indonesia/National All Workers Assembly )  Declaration in Jakarta ( Gelora Bung Karno ) 1ST Mei 2012  Declarator : KSPI,KSPSI,KSBSI

and FSBI,FS-TSK,OPSI,GSPMII ,FSP-LEM,FKK-DI ( Total member 3,5 Million Workers )

 Manifesto :

* FOOD = Equitable of Income & Decent Livehood. *FREEDOM= Strengtening Democracy ,Politic ,Social Economy ,Culture . *PROTECTION = Social Justice and Social Protection.

KSBSI / IPTUC PROFILE With 40% Womens Representation

Pattern & Strategy of KSBSI Concept 1.Make Network with : Workers,Student,Farmer,NGO 2.Make legal draft or proposal 3.Make Planning

Lobby 1.Discuse with stake holder such as : parliament,political party, government, businessmen,public figure. 2.Discuse use social media such as Facebook & email . 3.Make Press Conference & approach to Newspaper ,Radio and Television .

Action 1.LongMarch&Campaign to get support from public 2.Rally and demonstration at Government Office ,President Palace,Parliament House .

NEVER GIVE UP STRUGGLE SOLIDARITY FOREVER