1. COUNTRY REPORT LIS WIDA HARINDIAH PERMATABANK UNION (AFFILIATED WITH OPSI)

2. Introduction Population 240 million people Indonesia consists of over 13,000 islands stretching along the equator for 3,000 miles. Comprising more than 300 ethnic groups Speaking 200 different languages, the Indonesian population exhibits marked diversity in its linguistic, cultural, and religious traditions. Over 65% live on the islands of Java, Madura, and Bali, which comprise only 7% of the land area.

3. Employment In 2006-2007, Working Age Population accounted for 159,257,680 can be classified as follows 1. labor Force 106,388,935 (67%) 1.1 Open Unemployment 11,104,693 (9.7%) 1.2 Working 95,177,102 (90%) 1.2.1 Self Employed 38,934,645 (41%) 1.2.2 Employer 2,813,769 (3%) 1.2.3 Employee 25,972,945 (27%) 1.2.4 Casual Employee in Agriculture 5,886,366 (6.4%) 1.2.5 Casual Employee Non Agriculture 4,244,130 (4%) 1.2.6 Unpaid Workers 17,325,247 (18%) 2. Non labor Force 52,975,885 (33%) 2.1 Attending School 13,978,325 (26%) 2.2 Housekeeping 30,806,003 (58%) 2.3 Others 8,191,557 (16%)

4. labor Force by Age No. Age Category NumberPercentage 1.15-2415,588,340 16% 2. 25-3425,140,278 27% 3. 35-4424,497,731 26% 4. 45-5417,285,123 18% 5. 55+12,665,630 13% Total95,177,102100.00 No.Age GroupAmount% 1.Primary School52,945,03456% 2.Junior High Sch.19,043,549 20% 3.Senior High Sch.17,885,727 19% 4.Diploma I-III2,147,378 2% 5.University3,155,414 3% Total95,177,102100.00 labor Force based on Educational Attainment

5. NoSectorAmount % 1. Agricultural, Forestry, Hunting 42,323,190 2. Manufacturing Industry 11,578,141 3. Construction 4,373,950 4. Wholesale Trade, Retail, Restaurant and Hotel 18,555,057 5. Transportation, Storage and Communication 5,467,308 6. Finance, Insurance, Real Estate and Business Serv. 11,725,257 7. Mining and Quarrying 947,097 8. Electricity, Gas and Water 207,102 Total 95,177,102 Working Population by Main Industries

6. Economic Indicator Population Living in Poverty Year Population living poverty % 199622.5 million11.3 % 200037.3 million18.95 % 200137.1 million18.40 % 200235.7 million15.9 % 200336.3 million16.2 % 2004 40 million (prediction) 17.5 % Major Economic Indicator 2000-2006 (%) Item 20002001 20022003 20042005 2006 GDP Growth 4.84.2 4.5 4.44.064.104.50 Inflation Rate (CPI) 3.89.06.05.111.325.906.0 Economic Structure as % of GDP : Sectors 198119912001 Agriculture23.419.516.4 Industry41.2 46.5 Services35.439.337.1

7. Indonesia faces high levels of unemployment, underemployment and poverty. 40 million live in poverty and 10 million unemployment ( 5% from 186 million global unemployment). one per cent increase in GDP generating 400,000 jobs five per cent per annum will be required just to absorb the 2.2 million new additions to the labor force each year.

8. Major employment issues : High levels of unemployment and underemployment Insufficient jobs to absorb new entrants to the labor market Low education and skills base of the workforce In-effective implementation of employment strategies Globalization and competitive pressures

9. Integrated strategy of employment -led recovery and reconstruction Strategies and policies to make the growth process more employment- friendly Action needed to create additional job through direct employment programs

10. Since the ratification of ILO Convention No. 87 in 1998 and the adoption of Trade Union Act No. 21/2000, trade unions have grown significantly. In November 2003, there have been 76 national federations of trade unions.

11. labor law Indonesia has ratified all 8 core Conventions of the ILO and becomes the first country in Asia Pacific and the fifth in the world. No. 29 Forced labor Convention, 1930 No. 87 Freedom of Association & Protection of the Rights to Organize Convention, 1948 No. 98 Rights Organize and Collective Bargaining Convention, 1949 No. 100 Equal Remuneration Conventions, 1951 No. 105 Abolition of Forced labor Convention, 1957 No. 111 Discrimination (Employment and Occupation) Convention,1958 No.138 Minimum Age Convention, 1973 No.182 Worst Forms of Child labor Convention, 1999

12. Indonesia has ratified a total number of 16 ILO Conventions since becoming a member in 1950. The latest ratification is the ILO Convention No.81 on Concerning labor Inspection in Industry and Commerce on November 2003 by the Act No. 21/2003.

13. Major issues in rights at work : Problems with implementation of rights in practice, concerning freedom of association, equal employment opportunity / payment, woman workers, outsourcing, rights to workers strike, working hours, employee termination, and child labor Child labor Slow progress with labor law reforms, Lack of awareness and understanding about core labor standards and fundamental principles and rights at work among the constituents and other concerned authorities at national and local levels, Capacity of regional and local government to ensure respect for rights at work.