ILO: Better Work Indonesia Programme hosts International Buyers Forum

Along with growing awareness of social issues, customers in the United States and Europe have become more selective in their purchases. They pay attention to how the clothing is made and require American and European brands to source from factories abiding with the International labour conventions and labour laws.

Press release | Jakarta, Indonesia | 28 June 2012

JAKARTA (ILO News): JAKARTA (ILO News): Along with growing awareness of social issues, customers in the United States and Europe have become more selective in their purchases. They pay attention to how the clothing is made and require American and European brands to source from factories abiding with the International labour conventions and labour laws. International brands source their products from various factories around the world. One of the major sourcing countries is Indonesia.

As the first Asian country to ratify the eight International Labour Organization (ILO) Core Conventions, Indonesia is seen as a strategic partner in the supply chains. The Indonesia apparel industry is growing at over 8 per cent per annum, as many garment factories move from China to Indonesia and other countries in the region. In 2011 over USD 6 billion of garment was exported to the United States and Europe. This industry contributes significantly to a country’s economy, providing over a million jobs and serving as a major source of income.

Despite of growing economic performance, At the enterprise level, the benefits of a growing industry have often not been shared with workers who are struggling with job insecurity and short term contracts; non-compliance in the payment of minimum wages and lack of workplace cooperation that have led to deteriorating working conditions.

At the same time, international brands are increasingly demanding their suppliers in Indonesia to integrate labour standard compliance into the production process as part of their business ethics and responsibility towards their customers. To ensure this requirement, the international brands have been working with their supply chains at an individual level in order to make improvements in the workplace.

There is a necessity to adopt an integral approach involving national government, workers and employers’ organisations, and international buyers with a view to maintaining sustainable improvement in working conditions in order to achieve ethical global supply chains.

Therefore, to enhance relationships with international buyers and facilitate social dialogue among governments, employers and workers, in order to promote labour standard compliance and enhance competitiveness in ethical global supply chains, ILO, through its Better Work Indonesia programme, is organizing a one-day International Buyers Forum which will be held on Thursday, 28 June at Sari Pan Pacific Hotel, Jakarta.

Michiko Miyamoto, Deputy Country Director of ILO Indonesia states, “It is important to keep in mind that productivity and the roles of buyers would be the key factor in overcoming the competitiveness. Working condition, welfare of the people who work in the industry and the quality of work should not be sacrificed for short term gain. Conducive working environment, better understanding between employers and workers and never ending support from the international buyers are crucial in ensuring long-term gains and sustainability.” She also hopes this meeting will provide constructive dialogue among international buyers and other stakeholders to work collaboratively in tackling challenges to ensure a better future.

Better Work is a unique partnership programme between the ILO and the International Finance Corporation (IFC). Better Work Indonesia is funded by the Australian Government under the Australian Agency for International Development (AUSAID) and The United States Department of Labor.

Better Work Indonesia (BWI) is part of the global Better Work programme, and one of the ILO’s country projects which aims to improve compliance with labour standards and promote competitiveness in Indonesia’s apparel industry, by offering customized advisory and training services to factories to address their individual needs. The BWI programme began in 2011 with the initial geographical focus onthe Greater Jakarta Area, which includes Purwakarta, Subang and Karawang.

BWI focuses on scalable and sustainable solutions that build cooperation among governments, employers’ and workers’ organization as well as international buyers. It is in line with the ILO’s mandate to promote Decent Work based on the four pillars covering (1) employment creation and business development; (2) social protection; (3) promotion of fundamental principal and rights at work; and (4) social dialogue. Better Work Indonesia carries out a mission to facilitate the realization of Decent Work throughout its activities.

For further information please contact:

Simon Field
ILO Programme Manager, Better Work Indonesia
Tel.: +6221-391 3112
Email


Josephine Imelda
ILO Knowledge Management and Communication Officer, Better Work Indonesia
Tel.: + 6221-391 3112
Email


Gita Lingga
ILO Communication Officer
Tel.: +6221-391 3112 Ext 115
Email