1. COUNTRY SITUATION REVIEW Group work 1

2. 1. The Impact of the crisis Increasing workers contract and daily workers Flexible time and flexible job Reducing number of permanent staff & increasing informal sector Lay off 237.000 Worker(Oct’08) – (Mar’09) Wage Mechanism System is not function labours are most dependently on MW increase Lack of labor inspection by the government On October 2008, due to economic crisis, Government Launching 4 Joint Ministerial Decree, said that all governors in Indonesia have to increase minimum wage under 6 %

3. Union Respond to Joint Ministerial Decree Union refused Joint Ministerial Decree by doing massive demonstration around province. Union call for wage increasement up to 10%. The government finally failed to implement the joint ministrial decree due to a very strong refusement from the union. Concerning the wage  the union representative on national wage council proposed MW based not just on single basis but on family status until K-2 (family two child).

4. 2. Legal Protection During Reformasi era started in 1998, Indonesia has passed 3 packaged of labour law (law No. 21/2000 (concerning of trade union), law No. 13/2003 (Manpower) and Law No 2/2004 of Dispute Settlement. Indonesia also has ratified 8 ILO labour core convention. -Right to Organize in Act no. 21/2000 (penal sanction for the companies against article 28 and 43) -Right to Organize and Negotiate/Bargain in Act 13/2003. -Right to Strike Ministry of Manpower Decree number 232/KEP/Men/2004 -Social security for workers in Act. No 3. 1992 -Compensation in Act 13/2003. -Draft Act for Domestic workers

5. Who is not covered by labor law? Informal sectors; home industry workers, self employee, domestic workers. existing labour law  law No 21/2000, Law No 13/2003, and law No 2/2004

6. The Priorities Of Trade Union In Asian Region Organized precarious workers on formal sectors Organized worker on informal sector. More active & effective organizing in grass root level. Change union movement from labor movement to the social movement. Labor Social Security Law enforcement and labor inspection.