Country Report
Trade Union Training on Information
Technology
ITC OF ILO Turin 8 November – 10 December 2004
General Information - OVERVIEW
CAPITAL CITY: Jakarta
LONG NAME: Republic of Indonesia
INDEPENDENCE DAY: 17 August 1945 (proclaimed independence; on 27 December 1949,
Indonesia became legally independent from the Netherlands)
GOVERNMENT TYPE: Republic
TOTAL AREA: 1,919,440 sq km
POPULATION: 238,452,952
LANGUAGES: Bahasa Indonesia (official, modified form of Malay), English, Dutch, local dialects,
the most widely spoken of which is Javanese
RELIGION: Muslim 88%, Protestant 5%, Roman Catholic 3%, Hindu 2%, Buddhist 1%, other 1%
(1998)
LIFE EXPECTANCY: 69.26
INFANT MORTALITY: 36.82
CURRENCY: Indonesian Rupiah (IDR)
GDP(PER CAPITA) : 3200
LABOR FORCE BY OCCUPATION:
INDUSTRIES: petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical
fertilizers, plywood, rubber, food, tourism
EXPORTS: oil and gas, electrical appliances, plywood, textiles, rubber
IMPORT machinery and equipment, chemicals, fuels, foodstuffs
POLITICAL STRUCTURE
2004 is an important year. This is the year that Indonesia democracy either opens its doors to a
new wave of consolidation and reform retreats along the historically familiar path towards a new
kind of authoritarianism .In 2004 elections will decide whether Indonesia democracy will
experience a rebirth or continue suffer slow suffocation for second time in fifty years..
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People worry about job and not income statistics. Unemployment matters. It is commonplace to
hear that Indonesia is too poor to have an unemployment problem Open unemployment remains
higher than many industrial counties and wide prevalence of underemployment means the people
cannot end meet even when willing to work long hour at low wage.
Public euphoria at the fall of an autocracy can easily turn to public disgust .Even worse it can to
nostalgia for the past. Part of the problem is the inability on unwillingness of post- new order
political to spell out what democracy actually means to lives or ordinary citizens. These is no
attempt to explain to the ordinary citizen the rights and rituals of democracy ,no spelling out of
claims and responsibilities, no evaluation of damage done by the kleptocracy that pass as orderly
governments of the new order .Democracy is equated with chaos and dictatorship with leadership
and stability.
This is the inevitable consequence of political parties who jockey for parliamentary and
government seats without any defined political positions .Civil society organizations carp and
complain at the margins of political life, contents to safeguard their image and chastity from the
depredation of the state and large business .The elevation of the importance of macroeconomic
recovery ,the absence of any transparent plan of political reform and ambivalent attitude to
corruption in high places has created a deep seated cynicism in public mind. This has bred a
number of other anxieties : separatism and disintegration of the nation state ,the capture of
political power by a resurgent business elite ,and the lack of any serious leadership which can
give the country a sense of will and direction .But things are not bad as that .The political and
constitution change already undertaken, thought often flawed,, make an effortless retreat to
authoritarian structures of the past unlikely .Decentralization, parliamentary reform ,the
establishment of independent institution such as the Constitution Court ,The Audit Commission
and Central Bank and the initial steps in military reform.
As has been the experience of many countries in transition to democracy, the political pendulum
is likely to swing back by 2009.The extent to which it does so will on the engines of democratic
reform its self: Political parties, media, civil-social organization .It will depend on creating a new
kind of leadership which can work collectively toward working out the steps of second wave of
reformism. To understand what needs to be including in the agenda of the second wave they
must go to the people. Democracy is about representing the people.
ECONOMIC STRUCTURE
The collapse of the rupiah in late 1997 and early 1998 caused GDP to contract by an estimated
13.7% in 1998 because of Indonesian firms' reliance on short-term dollar-denominated debt and
high levels of no performing loans in the banking sector. To solve the problem, the government
announced a bank re-capitalization program in late 1998, but by early 1999 the plan faced
growing challenges over its reliance on public funds. However, following the sharp contraction
and high inflation of 1998, the Indonesian economy stabilized in 1999 and following tight
monetary policy, the government reduced inflation from over 70% in 1998 to 2% in 1999.
Although interest rates spiked as high as 70% in response to the monetary contraction, they fell
rapidly to the 10% to 15% range. The economy stopped its free-fall as GDP showed some growth
in the second half of 1999, although GDP for the year as a whole showed no growth. With the
commitment of the government to maintaining fundamentally sound macro economic and
investors continued to face a host of the ground microeconomic problem and an inadequate
judicial system.Keys to future growth remain internal reform, building up confidence of
international and domestic investors and strong global economic growth.
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In 2003, gross domestic product (GDP) grew by 4.1%, a modest improvement over 3.7% the
previous year, even though the country was hit by another terrorist attack and faced the regional
problems caused by severe acute respiratory syndrome (SARS) and the conflict in Iraq. Inflation
slowed to 5.1% at the end of the year, the reference interest rate fell, and the rupiah firmed
against the dollar.
Fueled by growth in private and government consumption, Indonesia's economy is expected to
expand by 4.5% in 2004 and 2005 .
The key challenge facing policy makers now is to achieve and sustain higher levels of economic
growth, especially through greater domestic and foreign direct investment.Indonesia offers some
comparatives advantages to investors, with an attractive range and combination such as:
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A vast, fertile country endowed with rich and diversified natural resources.
A large population of about 202 million and dynamically adaptive to progress,
constituting a huge potential market as well as a competitive workforce.
A strategic location, on the cross road of two great continents and oceans
controlling vital international sea communities lines
A more democratic country
An open market oriented economy, with free foreign currency exchange rule.
A favorable business and investment climate.
Export as one of major economic indicator at last two years start to increase it can see on below
table :
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Table 2. EXPORT GROWTH
Petroleum
* Crude oil
* Gas
* Others
Non Petroleum
2003
9.230,5
3.754,4
4.309,4
1.166,7
31.517,4
2004
9.963,7
4.086,7
4.773,7
1.103,3
33,126,2
Total Export
40.747,9
43.089,9
( Million U$ )
Source : Central Bureau of Statistic
SOCIAL AND LABOR STRUCTURE .
As development county with population 238,452,952 , labor force 100,316,00 ( Male 64,837,000
Female 35,479,00 ) and who are working 90,785.000 ( Male 59,909,000 Female 30,876,000)
is potential for economic activities for growth of country . Working population by main industries
and labor force and non labor force by education can see as below table :
Table 3 Working population by Industries
Sector
Male
Female
Total
Agriculture &Foresty
27,385,000
14,616,000
42,001,000
Manufacture Industry
6,539,000
4,388,000
10,927,000
Construction
Wholesale trade,Retail,Restaurant
&Hotel
Transportation,Storage
&Communication
3,977,000
130,000
4,107,000
9,303,000
7,534,000
16,837,000
4,814,000
163,000
4,977,000
Source : ILO /USA declaration project in Indonesia
Table 4 Labor Force Base on Education
Educational Attainment
Not complated elementry school
Junior High School
Senior High School
Diploma I - III
University
Grand Total
Male
37,391,000
18,689,000
16,753,000
1,235,000
1,916,000
75,984,000
Female
45,307,000
16,594,000
12,529,000
1,128,000
1,108,000
76,666,000
Total
82,698,000
35,283,000
29,282,000
2,363,000
3,024,000
152,650,000
Source : ILO /USA declaration project in Indonesia
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STRUCTURE AND ORGANIZATION OF TRADE UNION.
A brief summary of the major trade union groupings in Indonesia is below :
Konfederation Serikat Pekerja Seluruh Indonesia ( KSPSI –formerly FSPSI )
Following a split in 1998,the former FSPSI restructured it self in 2002 .It is now a confederation
known as KSPSI ( Konfederasi Serikat Pekerja Seluruh Indonesia ).Some commentators still
regard this organization as single union grouping in Indonesia .The Ministry of Man Power takes
this view and presently allocates 50 % of the seats on any tripartite structures to KSPSI.
Konfederasi Serikat Pekerja Indonesia ( KSPI ).
A number of unions broke away from FSPSI in 1998 to Reform the Union. Since than most of the
Reformation have become associated with a new grouping. KSPI which had its founding
Congress early in 2003.Most of the 11 unions in this grouping are industry based unions many of
which cooperate with Global Union Federation. KSPI has a working relationship with the
International Confederation of Free Trade Union ( ICFTU ) ,although not yet a member. The
Confederation’s founding met under a banner proclaiming KSPI as “Building a Free, Independent
and Democratic union movement” .In the period ahead the new organization will be seeking to
develop its organization and administrative structures and to develop a work program aimed at
supporting the development of the Confederation and its affiliated unions. The Federation has
affiliated to KSPI : PB PGRI ( Teachers ),FSPTSK ( Textile, Garment& Leather ),FSP Kahutindo
( Wood & Building ), FSPKEP ( Chemical ,Energy &Mining ), ASPEK Indonesia ( Economic &
Finance ) FSPMI ( Metal ) ,SP PPMI ( Press & Printed ), FSPISI ( Indo Cement ), FSP Farkes –
Ref ( Pharmacy & Health ), Gasbindo
Konfederasi Serikat Buruh Seluruh Indonesia ( KSBSI ).
KSBSI was outlawed during the new order period and now organization now operation openly
,but complains of continuing harassment in its activities. FSBSI is a member of the World
Confederation Labor .It gas received significant international support ,most recently securing
assistance from European Union backed project for building of a training center on outskirts of
Jakarta.
For the membership of Three Labor Confederation can see an below table :
Table 5 . Membership of Labor Confederation
Confederation
Affiliated
Federation
Total
Membership
KSPSI
KSBSI
18
11
5,100,000
1,753,000
KSPI
11
2,908,047
* the data is based on information provided directly by relavant confederation
INFORMATION TECHNOLOGY & TRADE UNION
In Indonesia with population more than 238 million , user of internet around 2.5 million. It is
increase year by year cause economic condition growing up. Information and technology is
quiet expensive and new knowledge. At trade union only a view persons use computer especially
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at white color worker and worker at industrial with high technology .Some trade union just use
computer only for administration .For trade union which is affiliate with international trade they
quiet familiar with information and technology .Some also already have web side such as ASPEK
Indonesia, FSPMI ,KSBSI
Trade union movement also can fast running by use information of technology .Labor
information and some rally also can see at internet .International solidarity also step by step can
build by use internet. By international support trade union movement and freedom of association
in Indonesia rise up at 1998 . Now also rally of Mayday in Indonesia and worker /union
demonstrating are common and easy to see at internet .At special industrial area worker have
high education and work in multinational company communication between worker starting to
organize & communication use internet or e-mail .For example at Batam Industrial area some
link make by workers before settle union than by support from Union in Jakarta they start make
Union .With Internet or e-mail some info from Batam can easy know & fast to others outside. So
during 6 months 17 plan unions can establish with members around 5,000 under FSPMI.
International support from IMF ( affiliate of FSPMI ) , ACILS ( Jakarta Office ) and ILO/USA
declaration project make Batam Union branch establish.
By special support from International trade union affiliate Aspek Indonesia and KSBSI can set
up training center with full computerize .By spirit of solidarity some trade union can borrow and
make short course about basic know how of Information and Technology. ILO/Usa declaration
project in Indonesia also support training for some trade union which program include
Information & Technology .During the course trainer get basic computer such as Microsoft word,
excel and power point also basic use of internet .With
practical trainer can make small
presentation by power point and make communication by e-mail.
ACILS with international link make special training to build strong solidarity for trade union in
Asia region by held IT training at Taiwan Confederation Trade Union Training Center .With
participant from Japan, Korea, Taiwan, Hong Kong, Thailand, Bangladesh and Indonesia all
participant make strategy to settle Global Union .With instructor from ACILS USA learning about
important think of Global Union in Globalization era .
For economical issue than make Indonesia almost bank croup Indonesia Trade Union have
networking that focus on reforming the IFIs namely Asia Labor Networking on the IFIs – ALNI
establish on 2003.
For Labor advocated some NGO make special web side namely BenHill ( Location name of
Organization at Bendungan Hilir Jakarta ) on 2004 .They give advocate and information for
Industrial Labor dispute in Indonesia .
MAJOR PROBLEM &ISSUE OF INFORMATION TECHNOLOGY .
them use University Archipelago with more than 13.000 islands for Indonesia it is quite difficult
to build communication now day .Only less than 5 % of population have telephone line.In Java
, Bali and Sumatra
also in Big City have good telephone line and infrastructure of
communication now there are about 10 million telephone line . Even in big City student familiar
with Information & Technology only a few have personal computer some of, School or Course
Computer .In big city they can rent computer or internet in Indonesia call by Warung Internet
( Internet Shop ).
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Such as development country computer as hardware of information & technology still too
expensive for Indonesia Worker as general .With Minimum wage it is impossible for worker to
buy computer them self .Some lucky worker work in the office can use company computer and
get basic know how of computer but it is less than 10 % of Indonesia Workers .Some union by
Check Of System ( Membership ) can buy computer usually for administration and make
communication with affiliate international union .
Generally there is no special budget for IT development from Organization so become can not
make special IT training /course and set up hard ware(Computerand LAN ).There still not enough
awareness the important point of IT at Union to solve their problems. Some union at Federation
level such as ASPEK Indonesia have IT facility but still can not shearing know how of IT to others
federation due not enough budget .
PRIORITY AGENDA FOR TRADE UNION IN AREA OF IT .
In global era and to build global solidarity IT is the starting point. The fast information and
networking is the key of global solidarity.
Agenda for set up IT in trade union area such as :
1.Development IT Department and support by enough budget and human resource .
2.Make special training for workers who will handle IT at Union and set up Task Force IT at
Federation /National level .Use long term education system so PIC will always learning last
version of software and have new knowledge of IT .
3.Make networking between union at Federation/national level and connect with affiliation union (
Confederation and International ).
4.For quick and effective cost for use internet there must change from dial up system to Server
System .
5.Up grading software with
effective.
new version to make communication and work more quick and
6.Supporting from affiliation international organization and Foundation or Labor organization
such as ACILS ,ILO ,FES etc .
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