National dialogue develops a pathway to strengthen responsible business in Indonesia’s electronics industry

JAKARTA, Indonesia (ILO News) – The electronics industry is a key pillar of Indonesia’s manufacturing sector, providing jobs and opportunities for hundreds of thousands of men and women. It’s also a leading source of technological innovation and a priority sector for industrial development under the Government’s Making Indonesia 4.0 Road Map.

To support the adoption of responsible business conduct (RBC) for Decent Work in the industry, the International Labour Organization (ILO) is organizing a two-day National Industry Dialogue for Responsible and Sustainable Electronics Supply Chains in Indonesia, from 28 to 29 November in Jakarta. The event is presided over by Indonesian key world of work actors: Chairul Saleh, Acting Deputy Industry, Employment and Tourism of the Coordinating Ministry for Economic Affairs, Shinta W. Kamdani, Chair of Indonesian Employers’ Association (Apindo), Elly Silaban, President of the Confederation of All Trade Union (KSBSI) and Simrin Singh, ILO Country Director for Indonesia and Timor-Leste.

Currently, the government is undertaking an initiative to foster the involvement of Indonesia’s semiconductor industry in the global supply chain. The National Dialogue, therefore, will provide us with key recommendations to continuously improving workers’ skills and competencies in this sector.

Chairul Saleh, Acting Deputy Industry, Employment and Tourism of the Coordinating Ministry for Economic Affairs 

The National Dialogue brings together more than 100 key stakeholders to identify joint priorities and collaborative opportunities to build new forms of competitiveness and sustainability in the sector through RBC and decent work, including skills development. The event also provides a venue for stakeholders to build a stronger understanding of key international reference frameworks, particularly the ILO’s Tripartite Declaration of Principles concerning Multinational Enterprises (MNEs), hear good practices from home and abroad, and forge stronger supply chain partnerships between home and host countries for industry-wide improvement.

The ILO’s MNE Declaration is the only ILO instrument that provides direct guidance to enterprises (multinational and national) on social policy and inclusive, responsible and sustainable workplace practices. It also provides guidance Human Rights Due Diligence, which is becoming increasingly important tool for industries like electronics to strengthen Decent Work and navigate evolving supply chain expectations.

“The government of Indonesia has selected electronics sector as one of the key industrial sectors to be developed to face the future of industrial development. Currently, the government is undertaking an initiative to foster the invovement of Indonesia’s semiconductor industry in the global supply chain. The National Dialogue, therefore, will provide us with key recommendations to continuously improving workers’ skills and competencies in this sector,” stated Deputy Chairul Saleh.

The ILO is supporting Indonesia to strengthen its position as a leading economic player in Southeast Asia, with its renewed commitment to decent work and RBC. With a combination of international guidance and nationally owned strategies, Indonesia can chart a path toward sustainable growth and development.

Simrin Singh, the ILO Country Director for Indonesia and Timor-Leste 

Simrin Singh, the ILO Country Director for Indonesia and Timor-Leste, applauded Indonesia’s national commitment to responsible business through its National Strategy on Business and Human Rights, launched last year. She also emphasized the important role of the MNE Declaration in helping guide responsible practices across Indonesia’s business landscape, with the electronics sector at the fore.

“The link between business and human rights has received growing attention in recent years, leading to calls for stronger measures by governments and businesses to protect and respect human rights in the context of business operations. The ILO is supporting Indonesia to strengthen its position as a leading economic player in Southeast Asia, with its renewed commitment to decent work and RBC. With a combination of international guidance and nationally owned strategies, Indonesia can chart a path toward sustainable growth and development,” she stated.

The National Dialogue is attended by policymakers, leading electronics companies, worker and employer organizations, and national and international experts, including from ILO’s headquarters in Geneva.  Sessions will explore opportunities and challenges for the Indonesian electronics sector, strategies for promoting sustainable and responsible supply chains, industry innovations and good practices, lessons learnt from other countries, collaborative efforts among diverse stakeholders, and dialogue and co-creation on a way forward for the sector.

The ILO is promoting responsible business for decent work in Indonesia’s electronics sector through two complementary projects: the Resilient, Inclusive and Sustainable Supply Chains, or RISSC Project, and the Skills Development and Responsible Business Conduct for Transition project, or METI-Skills, project.

Funded by the Japanese Ministry of Health, Labour and Welfare (MHLW), the RISSC Project aims to build more resilient, inclusive, and sustainable supply chains by addressing Decent Work deficits and advancing Responsible Business Conduct, at the enterprise, industry and national policy levels. The METI Skills project, meanwhile, supports supply chain resilience and sustainability by cultivating workforce skills development, in preparation for the shift in industrial structure towards a sustainable economy. 

For more information, please contact:
Tauvik Muhamad   
ILO’s Programme Coordinator for RISSC Project in Indonesia
tauvik@ilo.org

Dede Sudono      
ILO’s Programme Coordinator for Skills Development and Responsible Business Conduct in Indonesia
sudono@ilo.org

Gita Lingga     
ILO Senior Information and Communications Management Assistant 
gita@ilo.org