Stage IV">Better Work Indonesia (BWI) hosted its annual Indonesia Business Forum (IBF) 2025 in Jakarta under the theme "The Power of Unified Efforts in Driving Sustainable Progress." The event brought together approximately 130 participants, including international buyers, sourcing intermediaries, group manufacturers, licensees and other key stakeholders.
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The forum emphasized the importance of unified efforts in advancing sustainable progress and explored tripartite collaborations to enhance labour law enforcement and foster respectful workplaces. It also highlighted the strategic integration of BWI's practices into national frameworks, ensuring the long-term sustainability of these initiatives.
As the programme transitions toward sustainability, the ILO remains committed to supporting the next chapter under the Kemitraan Kerja Foundation (KKF) to ensure the industry's competitiveness and compliance and that no one is left behind.
Kristina Kurths, representing the ILO Country Director for Indonesia and Timor-Leste
Kristina Kurths, representing the ILO Country Director for Indonesia and Timor-Leste, commended the strong partnerships among the Indonesian government, employers' and workers' organizations, international buyers and development partners. She praised BWI as a collaborative model that bridges policy, enterprise improvement and worker well-being.
"Over the years, Indonesia's garment industry has evolved into one of the region's most dynamic sectors. As the programme transitions toward sustainability, the ILO remains committed to supporting the next chapter under the Kemitraan Kerja Foundation (KKF) to ensure the industry's competitiveness and compliance and that no one is left behind," she stated.
Interactive panel discussions
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The IBF featured two panel discussions. The first was a tripartite panel consists of industry leaders that focused on trade and due diligence frameworks, particularly the European Union (EU)-Indonesia Comprehensive Economic Partnership Agreement (EU-CEPA) and HRDD. The discussion explored how these frameworks are reshaping the global landscape and setting new expectations for responsible sourcing. The session reaffirmed Indonesia's commitment to implementing labour standards, especially the ILO's Fundamental Principles and Rights at Work and emphasized the roles of employers and workers in upholding HRDD.
Jerome Pons, Head of Cooperation at the EU Delegation to Indonesia, praised Indonesia's commitment through the signing of the EU-CEPA. "This is a historic agreement and a game changer for both the EU and Indonesia. It will enable us to transition from free trade to sustainable trade by promoting stronger protection of workers' rights, women's empowerment and compliance with labour laws."
From the workers' perspective, Eko Purwantoro, Head of International Affairs and Networks at the National Workers' Union (SPN), stated, "HRDD is meant to strengthen the role of trade unions and workplace standards." Meanwhile, representing the employers' view, Anne P. Susanto, Head of Trade at the Indonesian Employers' Association, added, "HRDD is important, but we also need to enhance business practices by focusing on productivity and efficiency to attract investment."
The agreement will enable us to transition from free trade to sustainable trade by promoting stronger protection of workers' rights, women's empowerment and compliance with labour laws.
Jerome Pons, Head of Cooperation at the EU Delegation to Indonesia
The second panel featured representatives from the Ministry of Manpower's Labour Inspection and Occupational Safety and Health Directorate General, who raised awareness about the updated Fixed-Term Employment Contract (PKWT) Guidelines. Gian A. Sugandi and M. Nico D. Priastomo shared their experiences and emphasized Article 59 of Indonesia's Job Creation Law. According to the law, PKWT is intended for employment of a specific, limited duration or for a particular, defined task, with a maximum term of five years.
"If there is an extension beyond five years, it raises concerns for labour inspectors, as it suggests the role is permanent and may constitute a violation," said Nico. Gian added that after the maximum duration, a PKWT can be converted into a long-term employment agreement as an Indefinite Employment Contract or Permanent Employment Contract (PKWTT).
Good practices from high-performing factories
The IBF concluded with good practices shared by three high-performing BWI factories. BWI is currently assessing additional candidates, with a target of recognizing 20 more high-performing factories by 2026.
PT Ungaran Sari Garments, located in Semarang, Central Java, has been recognized as a high-performing factory since 2018. It shared its journey of sustaining excellence through a work culture that promotes compliance, sustainable improvements, effective social dialogue, and continuous learning opportunities. The company has also responded to the rapidly evolving textile sector by investing in technology and automation.
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The other two companies featured were among those in the programme to be recognized as high-performing factories. One of them, PT Uwu Jump Indonesia, based in Subang, West Java, specializes in textile products and affectionately refers to its workers as "jumpers." The company supports worker development through a digital learning platform and various training initiatives. This platform enables workers to access information on employment status, wages, available facilities, and learning opportunities.
They can also submit reports or feedback via the platform, suggestion box or trade unions. To ensure effective communication, the company holds monthly bipartite meetings and has appointed a dedicated HRD officer to liaise with trade union representatives and address industrial relations issues.
Similarly, PT TPINC Trading Jakarta, a fast-growing garment and textile company based in Central Java, prioritizes both workers' welfare and business sustainability. It actively engages employees through annual surveys to understand their needs and concerns.
In addition, the company holds direct elections for the Bipartite Committee to promote transparency and shared ownership between management and workers. It also supports its 1,400 female employees by providing a lactation room and fosters an inclusive workplace by hiring persons with disabilities and nurturing a disability.
