INDONESIA COUNTRY REPORT

INDONESIA COUNTRY REPORT

TRADE UNION TRAINING ON INTERNATIONAL TRADE AGREEMENTS, DEVELOPMENT AND TRADE UNION AGENDA

INTERNATIONAL TRAINING CENTER OF THE ILO, TURIN (ITALY)

22 Nov – 2 Oct 2007

A. General Condition

-          Population                               : 260 million

-          Working age                            : 160 million (Age > 15 years)

-          Education of Labour force     : - 55% graduate from elementary school (non skill)

  - 45% upper education

Indonesia is one of developing country in the world, with much of natural resource and culture. Beside of that Indonesia also have much of manufacture industry.

B. Labour Act

1. Act No. 21 Year 2000 (UU No.21 Thn. 2000) about Trade Union
2. Act No. 13 Year 2003 (UU No. 13 Thn. 2003) about Manpower
3. Act No. 2 Year 2004 (UU No.2 Thn 2004) about Labour Dispute Settlement
4. Act No. 3 Year 1992 (UU No. 3 Thn 1992) about Social Protection for Workers
5. Act No. 40 Year 2004(UU No. 40 Thn 2004) about National Social Security

Now the government still negotiation about regulation for Pension Fund for the Labour that working at formal sector.

C. Ratified ILO Convention

No	Convention	Year
1	C19 Equality of Treatment (Accident Compensation) Convention, 1925	1950
2	C27 Marking of Weight (Packages Transported by Vessels) Convention, 1929	1950
3	C29 Forced Labour Convention, 1930	1950
4	C45 Underground Work (Women) Convention, 1935	1950
5	C69 Certification of Ships' Cooks Convention 1946	1992
6	C81 Labour Inspection Convention, 1947	2004
7	C87 Freedom of Association and Protection of the Right to Organise Convention, 1948	1998
8	C88 Employment Service Convention, 1948	2002
9	C98 Right to Organise and Collective Bargaining Convention, 1949	1957
10	C100 Equal Remuneration Convention, 1951	1958
11	C105 Abolition of Forced Labour Convention, 1957	1999
12	C106 Weekly Rest (Commerce and Offices) Convention, 1957	1972
13	C111 Discrimination (Employment and Occupation) Convention, 1958	1999
14	C120 Hygiene (Commerce and Offices) Convention, 1964	1969
15	C138 Minimum Age Convention, 1973	1999
16	C144 Tripartite Consultation (International Labour Standards) Convention, 1976	1990
17	C182 Worst Forms of Child Labour Convention, 1999	2000

D. Trade Union

Before Reformation Era Indonesia (1998) just have 1 (one) trade union, but after that Indonesia have 3 (three) trade union confederation in Indonesia. 86 (eighty six) National Federation and more than 1000 (one thousand) local trade unions (plant level).

E. Bounded Zone and Other Industry

Indonesia have 8 Bounded Zone at 5 different area with more than 50.000 factory operated at that area. Beside that there are many industry location that not inside the bounded area.

   

F. Globalization in Indonesia

In fact Indonesia has been fund by IMF and World Bank More than 20 years until now. We have privatized more than 25% of national asset including Bank, Clean Water Supply, Electricity, Telecommunication and Public Transportation.   

G. Effect of Globalization for Workers and Trade Union

In mine while Globalization have big effect to the workers and trade union, especially for the workers and trade union in Indonesia.

Major Effect for workers:

1. Decrease of Labour right
2. No more freedom of Association.
3. No more minimum wages.
4. Unskilled Employment lose their job.
5. Temporary Workers.
6. Outsourcing.
7. Increase of informal sector.

Major effect for Trade Union :

1. Decrease of membership and Bargaining in the Labour policy
2. Hard to organizing and recruitment for the new member because the working relation and condition.

Trade Union Strategic for effect of globalization

1. Trying to organizer and recruit the informal sector.
2. Take a part in determine of Labour policy, Act and Regulation
3. Lobbying the government to make a new policy about the industrial relationship.
4. Built communication with other trade union and sharing the information about the Labour issue.
5. Built link in national, regional and international to get support and learn about experience from the other organization.