COUNTRY REPORT
THE OSH FOR SME’s IN INDONESIA
MINISTRY OF MANPOWER AND TRANSMIGRATION
OF INDONESIA
By
dr. Mardiani Oemar, MM
1
Indonesia consists of :
 The largest archipelago
 17000 islands
 5 main islands
 in the Southeast Asia between
the Indian and Pacific ocean
 30 governors and 360 districts

population more than 212 million
2
Structure and Organization of
Ministry of Manpower and Transmigration
Ministry of Manpower and
Transmigration
Directorate General of
Industrial Relations and
Labor Standards
Secretariat DG
Directorate of
Industrial
Relations
Institution
Development
Directorate of
Term of
Employment
and Labor
Disputes
Settlement
Directorate of
Social Security,
Wages and
Welfare
Directorate of
Occupational
Safety and
Health
Standards
Directorate of
Labor Norms
Inspection
3
DIRECTORATE OF OCCUPATIONAL
SAFETY AND HEALTH STANDARDS
DUTIES
To formulate and implement the policies,
standardization, and technical guidance and
to conduct evaluation in the fields of labor
norms inspection
4
(New) Structure and Organization of
Ministry of Manpower and Transmigration
Ministry of Manpower and
Transmigration
Directorate General of
Labor Inspections
Secretariat DG
Directorate of
General Labor
Norms Inspection
Directorate of
Occupational
Health
Inspections
Directorate of
Occupational
Safety
Inspections
Directorate of
Child and Woman
(Gender) Labor
Norms Inspection
5
DIRECTORATE OF OCCUPATIONAL
SAFETY INSPECTIONS
DUTIES
To formulate and implement the policies,
standardization, and technical guidance and
to conduct evaluation in the fields of
inspections of mechanic, boiler and
pressure vessel, electrical circuits, and fire
prevention and the workers safety
institutions and skill developments
6
DIRECTORATE OF OCCUPATIONAL
HEALTH INSPECTIONS
DUTIES
To formulate and implement the policies,
standardization, and technical guidance and
to conduct evaluation in the fields of
inspections of workers health, environment
management, and the developments of
occupational health institution and skill
7
ORGANIZATION STRUCTURE
MINISTER OF MANPOWER AND TRANMIGRATION
RESEARCH, DEVELOPMENT & INFORMATION BOARD
SECRETARIATE
ADDMINISTRATION
NC RESEARCH
AND
DEVELOPMENT
OF MANPOWER
NC RESEARCH AND
DEVELOPMENT OF
TRANSMIGRATION
NC OF
INFORMATION
NATIONAL
INSTITUTE
OF OHS
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NATIONAL INSTITUTE OF OH&S
ANALYTICAL
DIVISION
OSH HUMAN RESOURCE
DEVELOPMENT AND
PLANNING PROG. DIV.
SAFETY
ANALYTICAL
SUB DIV
HUMAN RESOURCE
DEVELOPMENT
SUB DIV
INDUSTRIAL
HYGIENE &
OCC. HEALTH
SUB DIV
PLANNING
PROGRAM SUB DIV
GENERAL
AFFAIR
DIVISION
FINANCE
SUBDIV
PERSONNEL
SUBDIV
HOME
AFFAIR
SUB DIV
9
National Institution of OHS
The function of NIOHS are conducting
research, developing information and skill,
information exchange (training),
standardization and services in OSH
10
The proportion of Indonesia’s Small and Medium Scale
Enterprises in 2001 are very high, approximately 85% of
all industries;
The Number of Companies 2001
1 Small
141,894
2 Medium
14,970
3 Large
12,660
THE NUMBER OF ENTERPRISES
MAJORITY OF COMPANIES ARE SMALL , AND THE MAJORITY
OF WORKFORCE IN THAT COMPANIES.
11
Implementation of labour legal aspect
Inspection object and Safety Inspector
 Inspection object population in 2001 : 176.713
companies
 Number of labour inspector : 1.299 man
 Functional inspectors : 801 man
 Structural inspectors : 389 man
 Unfunctional and unstructural inspectors : 109
 Total workers : 91.65 million
 Women workers : 33.06 million (36,08%)
12
Occupational Accident
 Based on :
o Accident report by companies to the MOMT
o The data based on workers compensation insurance
Accident case by age and gender
The biggest proportion of accident by young age group
(21to30 years old) and the older age group ( 51 and over)
was quite low
The accident occurred among male approximately 80% for
total accident, probably the types of task, woman are not
assigned to dangerous task in hazardous industry and
the number, male bigger than female
13
Accident Case at Indonesia
Permanent
Temporary
Disablement Disablement
Year
Fatality
Total
1999
1476
11,871
78,163
91,510
2000
1592
12,025
85,285
98,902
2001
1768
12,566
90,440
104,774
2002
1903
10,345
91,556
103,804
14
ACCIDENT CASE BY DEGREE CAPACITY
• The number of workers’ death trend to increase
• The proportion of death is lower than temporary and
permanent disability
• The proportion of temporary disability is lower than
permanent disability
ACCIDENT CASE BY COMPENSATION PAID
During 1999 to 2002 compensation paid has been
increasing trends due to increasing number of
companies and the reliance of workers to make
claims.
15
ACCIDENT CASE BY COMPENSATION PAID
Year
Accident Case
Compensation
Paid (Rp)
1999
91,510
83,316,557,210
2000
98,902
102,439,839,461
2001
104,774
131,266,539,821
2002
103,804
158,045,163,678
July
2003
51,528
89,799,905,006
During 1999 to 2002 compensation paid has
been increasing trends.
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PROFILE OF SME’s
There is no clear definition
These group are often associated with small and medium
scale of capital investment, the number of workers,self
employment and traditional work
One of the efforts is introducing OSH programs through
OSH management system
Level of concern from employer and employees are also
important on improvement of occupational safety and
health in companies.
SMEs as follows : shoes industry, cigarette industry,
garment industry, handbag industry, textiles industry etc.
17
PROMULGATED THE REGULATIONS CHILD
LABOUR THERE ARE :
1. Act no2/89 about National Education System by 9
years basic education program.
2. Presidential Instruction (Inpres) no.3/97 concerning
build up children’s quality
3. Presidential decree ( Kepres) no 36/90 on children’s
right
4. Act no 4/79 on children’s welfare
5. Act no 20/99 (Ratification ILO Convention no138)
concerning minimum age for admission to
employment
6. Act no 1/2000 ( Ratification ILO Convention no182 )
concerning the prohibition and immediate action for
elimination of worst forms of child labour
18
PROGRAM TO COMBAT CHILD LABOUR
1. To mainstream the children into schools or formal
education
2. Providing the children with skill training or vocational
training through specialized training.
3. Providing the children with scholarship
4. Convincing the parents about the risk associated with
child workers and the importance education for the
children by training.
5. A Pilot research – Hazardous form child labour of palm
oil plantation sector in Indonesia (in progress).
19
Legal Aspect
Article 5, 20, 27 ayat (2)
Article 3,9,10 ACT No.14 of 1969
Article 86, 87 ACT No. 13 of 2003
ACT No. 1 of 1970
Implementing Regulation
Government Regulation
Code of Practice
20
The main OSH legislation in Indonesia is Act no
1/1970
The Act no 3/1992 on worker compensation Act
Legislations related to working environment are
Minister of Man Power Circular Letter no
SE/01/MEN/1997 on threshold limit value for
chemical in the workplace, and Minister of MP
Decree no Kep 51/MEN/99 on TLV for physical
aspects in the workplace
Minister of Manpower, Transmigration and
Cooperation regulation No Per 1/MEN/1976 on
the obligation to attend training courses on OHS
for company medical doctors.
21
Minister of Manpower and Transmigration No Per
1/MEN/1979 concerning to compulsory training in
OHS for industrial medical officers
Minister of Manpower and Transmigration No
Per 4/MEN/1987 concerning to OSH committee
the workplace
Minister of Manpower and Transmigration No Per
5/MEN/1996 concerning to OSH management
system
Minister of Manpower and Transmigration No
Per 2/MEN/1992 concerning to designation of
obligation & authorization OSH officers.
22
SME’s PROBLEM IN INDONESIA
Dangerous working area
Their wages are very low
Lack in health care
Lack awareness and knowledge of OHS
Lack on skill
Poor house keeping
Poor law protection ( no PPE )
23
Programs :
1. Improving the knowledge about OSH to small
and medium enterprises’ employers and
employees by giving information through
OSH presentation, leaflet, booklet about OSH
standards, guidelines, code of practices,
news or other information facilities.
2. Improving the knowledge about OSH by
educating and training for manager,
supervisor, doctor, nurse, Committee
members and others
24
3. OSH services on monitoring and evaluation the
potential hazard in the workplace for small and
medium enterprises, such as gas, dust noise,
heat stress, lighting etc.
4. Government encourages other parties such as
private consultant, university, and professional
association to participate in providing counseling
on OSH for small and medium enterprises.
5. Government encourages the university, training
institutions, professional associations and NGOs
to develop education and training in the frame of
improving human resources capability in OSH.
25
6. Empowering of OSH inspectors to do their
responsibility consistently.
7. Improving the number of inspectors by developing
education and training.
8. Improving the quality of inspector in OSH.
9. Improving technical expert in OSH
10. Improving research in safety and occupational
health to raise Indonesia laws, standard and other
national regulations.
26
11. Improving the effort to socialize OSH through
the national campaign that recently has been
improved to become
National
Movement
program of OSH with the aim that OSH should
become the culture of the nation.
12. Holding program with development object and
inspection should be priority to the enterprises
which have high dangerous risks, employ many
workers, and sectors which supporting non oil
export commodities.
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13. For the enterprises which have success in
carried out OSH the Government will present
the Safety Award. And we expected from the
enterprises that have success and got the
safety award can develop the small enterprises
in their surrounding.
14. Make effort that OSH matters could put in the
curriculum to formal education.
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ARIGATO
Thank You
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