1. Kongres Serikat Pekerja Indonesia Indonesian Trade Union Congress Indonesian Country Report Trade Union Training on IT with a focus on Networks Development” Bangkok, 11-15 December 2006 Aryo Judhoko Consultant for Network and Cooperative SERIKAT PEKERJA NASIONAL NATIONAL WORKER TRADE UNION

2. Agenda 1.Introduction 2.Adaptation to drastic changes in the labour market 3.How are the Unions handling delimits of Globalization and regional integration 4. ITUC Profile 5.IT on Trade Union

3. Global Condition in Indonesia Introduction Independence from Colonialism August, 17 1945 Have population around 220 million peoples. Have many island, 17.300 islands Have different cultured, language, Religious, (The Majority is Moslem, around 80 % ) Total of workers (formal and indformal): 106.9 million

4. Employment by Industry 2000 + unemployment rate 2000

5. Informal workers by industry 1997 - 2002 Main Industry1997199920012002 (1)(2)(3) (4)(5) Agriculture29,.972,.91032,.307,.276 36,027,.50237,.321,006 Mining & Quarrying367,376278,657401,376277,881 Manufacturing3,415,7513,577,5202,940,6923,155,917 Electricity, Gas, and Water Supply 32,74718,46916,86712,964 Construction652,455522,5791,529,0282,199,153 Trade10,464,90110,726,26010,052,60510,036,112 Transport, Storage and Communication 2,220,0022,473,5562,573.,5252,883,.232 Financial & Corporate Services71,51263,05359,40131,806 Social & Community Services2,768,8402,631,4142,205,2022,058,531 All Sectors49,966,49452,598,78455,806,19857,976,602

6. Adaptation to drastic changes in the labour market

7. Situation in Indonesia: –Fourth largest population in the world (210 million) –Low-cost producer (“cheap labour”) but nascent emergent democratic union movement post-Suharto –Rapid growth pre 1997 Women largely in “traditional roles” –Effects of Asian crisis Role of IMF and World bank –Influence of informal sector Lack of welfare system; widespread poverty

8. Social Protection in Indonesia Government give an electric subsidy Government give an education subsidy Until Elementary School Government give a health subsidy For Poor Family

9. Indonesian Labor Law Established Trade Union  minimum 10 workers  regular & contractor workers Make Collective Bargaining and Agreement  Have 50% + 1 of total workers Requirement Contractor Workers  Limited jobs which are not regular Outsourcing  Limited jobs are in Core Business Time Maximum Training for New workers  6 months Total Hours worker in Week  40 Hours Total Annual Leaves  12 days Maternity Leave (when got baby for women)  3 Months For this case Some Trade Union Refuse this labor Law until Now, but the Government wants Revision this Labor Law become more worst.

10. How are the Unions handling delimits of Globalization and regional integration :

11. Indonesian Workers Challenges Minimum Wage, 95 $ / per month For Banking  $95 + 8 %/month The large number of unemployeed The member of trade union are only 3.3 million

12. Indonesian Workers Challenges Outsourcing : teller, call center, marketing, mall, factoryOutsourcing : teller, call center, marketing, mall, factory Privatization : telecomPrivatization : telecom Merger : BankMerger : Bank Bankrupt : textille, property, factoryBankrupt : textille, property, factory Restructuring : printingRestructuring : printing Factory moved to other country : Soni Indonesia  VietnammFactory moved to other country : Soni Indonesia  Vietnamm Change the Business : textile  tradingChange the Business : textile  trading

13. Major Problem in Indonesia The big of amount Indonesia DebtThe big of amount Indonesia Debt 131billion $ ( 1 person have to guarantee 800$ ) 131billion $ ( 1 person have to guarantee 800$ ) 30 % Budget of State to Paid Debt. 30 % Budget of State to Paid Debt. Corruption in Government  Corruption Together, Not Productive, Not EfficiencyCorruption in Government  Corruption Together, Not Productive, Not Efficiency Government Not Care  Cutting Some SubsidyGovernment Not Care  Cutting Some Subsidy Influenced of Capitalism to Government by IMF, ADB, World Bank.Influenced of Capitalism to Government by IMF, ADB, World Bank. Law enforcement  Many Case in Industrial RelationshipLaw enforcement  Many Case in Industrial Relationship

14. Impact of Globalization The Concept of Global Market Unlimited border country in global Market & Only Good & Big Company have opportunity to win global competition Flexibility of Labor Market Change the status of employees, its aim to cut / dismissed labor easily Changed The State’s Concept The function of state is only to protect Interested Capitalism with forced labor

15. Revision Plan of Labor Law Contract extension from 3 years to 5 years Unlimited position and kind of job  accounting, marketing also can be contrated Unlimited Outsourcing  unlimited kind of job No retirement Payment for mages up $120 Limitation of Retirement Payment

16. The Weakness of Labor Movement Not have a strong ideology Not Care with the other Issue  the oriented movement is still materialistic Low Awareness of the members Will active if they have a problem  no good commitment from grass root Weakness Education Good Education Limited on Leader Trade Union

17. ITUC Action Plan Build the Grass Root  Organize, maintenance & encourage members in Grass Root Makes an excellent Collective Bargaining and Agreement  To be protected in Company Level Lobby Parliament  Get Support from parliament to Support Labor Movement Build Alliances with other civil movement, build action together if there have some same idea

18. ITUC Profile There are 3 National Trade Union Center (National Confederation) : KSPSI, KSBSI and KSPI. Kongres Serikat Pekerja Indonesia or Indonesian Trade Union Congress (ITUC) Established 2001 by 10 Federation, and have almost 2,000,000 member. In Global Federation  affiliated to ICFTU.

19. Established 2001 by 10 Federation : 1.PGRI = education sector affiliated to Education International 2.SPN = textile & garment sector affiliated to ITGWF 3.ASPEK Indonesia = services sector affiliated to UNI 4.SPMI = metal, electronic and automotive sector affiliated to IMF 5.KAHUTINDO = wood and rattan sector affiliated to IBBWF 6.FARKES = pharmacy and health sector affiliated to PSI 7.KEP = chemical, energy and mining sector affiliated to ICEM 8.ISI = cement industry sector 9.PPMI = graphic, publishing and media sector 10.Pariwisata = Tourism sector

20. IT on ITUC ITUC have not website. From ITUC member, only ASPEK Indonesia who have an official website. For correspondence, it is a common all the member have their email address. There is not yet programmed to TV

21. Thank You