Labour law compliance

Calling for intensified efforts to improve labour law compliance in Indonesia

Indonesian key labour actors have called for intensified and integrated efforts to improve and promote labour law compliance in Indonesia. They have also called for the modernization of the labour inspection function by moving from a traditional approach to a strategic labour compliance approach through the involvement and strengthened collaboration with multi-stakeholders.

News | Jakarta, Indonesia | 07 April 2017
Hery Sudarmanto, Secretary General of the Ministry of Manpower delivering the remarks of Indonesian Minister of Manpower, Hanif Dhakiri
Indonesian key labour actors have called for intensified and integrated efforts to improve and promote labour law compliance in Indonesia. They have also called for the modernization of the labour inspection function by moving from a traditional approach to a strategic labour compliance approach through the involvement and strengthened collaboration with multi-stakeholders.

The two-day Symposium titled “Strategic Labour Law Compliance in Indonesia through the Labour Inspection System” in April, jointly co-hosted by the Ministry of Manpower of Indonesia and the ILO, engaged more than 100 participants from both the public and private sector to look into innovative strategies to improve and strengthen labour law compliance in the country.

To strengthen labour law compliance, the Government of Indonesia has established the labour norms expert/cadre (KNK) to promote compliance within the company. To further monitor the progress, we are now in the process of developing a labour compliance index. We hope that with these mechanisms we would be able to develop and strengthen a strong compliance culture in all companies in Indonesia."

Remarks of the Indonesian Minister of Manpower, Hanif Dhakiri, delivered by Hery Sudarmanto, Secretary General of the Ministry of Manpower
Learning from experiences shared in the Symposium from other countries and also within Indonesia, participants called for the adoption and expansion of strategies that involve leveraging stakeholders ‘influence, the use of technology in data gathering and management and the role of incentives and disincentives to compliance.

“To strengthen labour law compliance, the Government of Indonesia has established the labour norms expert/cadre (KNK) to promote compliance within the company. To further monitor the progress, we are now in the process of developing a labour compliance index. We hope that with these mechanisms we would be able to develop and strengthen a strong compliance culture in all companies in Indonesia,” said Indonesian Minister of Manpower, Hanif Dhakiri, in his remarks, delivered by Hery Sudarmanto, Secretary General of the Ministry of Manpower.

The participants also agreed that there is an urgent need for Indonesia to improve its labour compliance. Harijanto, Chair of the Indonesian Employers’ Association (Apindo), said that labour law compliance was key for Indonesia to improve its competitiveness and to attract investment. Meanwhile Iwan Kusmawan, Chair of National Workers’ Union of the Confederation of Indonesia Trade Union (KSPI), supported the efforts to move forward with more strategic labour compliance.

“If more companies comply with labour standards and the law, more trade union members and workers will gain benefits that in turn will strengthen our industrial relations,” said Harijanto. “Labour law compliance is a must, benefiting both companies and workers,” Iwan added.

The Symposium concluded with a preliminary draft of an action plan by relevant stakeholders in Indonesia. Next steps should include developing more concrete steps for the country and specific sectors, highlighting efforts and strategies towards ensuring decent working conditions and promoting a culture of compliance.

The ILO continues to support the Ministry of Manpower in modernizing its labour law compliance strategies through its Better Work Indonesia (BWI) programme and other initiatives at both sectoral and national level.