Indonesia's electronics sector is a critical driver of economic growth, innovation and employment. As the sector integrates more deeply into global value chains, it faces increasing expectations from consumers, investors and trade partners to demonstrate respect for human and labour rights. This presents both a challenge and an opportunity to build a more sustainable, equitable and competitive industry.
Recognizing these challenges and opportunities, the International Labour Organization (ILO), under the Resilient, Inclusive and Sustainable Supply Chains (RISSC) Project and in collaboration with the Indonesian Employers' Association (APINDO), has developed a practical toolkit to support small and medium enterprises (SMEs) in the Indonesian electronics sector in strengthening labour rights and promoting decent work.
Responsible business for decent work in the Indonesian electronics sector: A guide for SMEs offers practical, step-by-step resource to help companies operating in Indonesia's electronics and wider manufacturing sector to understand and implement Responsible Business Conduct (RBC) and Human Rights Due Diligence (HRDD) by translating the HRDD process into practical actions that align with existing management systems, highlights salient labour-rights risks and provides tools and examples to support effective engagement with workers, suppliers and other stakeholders.
The guidance contained in the toolkit aligns with key international standards, including the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO MNE Declaration), the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises, all of which recognize international labour standards as the foundation for RBC.
This toolkit is intended for senior and operational level managers in electronics manufacturers - both multinational and national - in Indonesia; procurement, supply-chain and sustainability professionals in global brands sourcing from Indonesia; Indonesian suppliers and SMEs within the electronics and related supply chains; employers' and business membership organizations; worker representatives and trade unions; as well as government agencies involved in trade, investment, industrial and labour market policies.
Recognizing the important role of SMEs in implementing RBC and HRDD, Shinta Widjaja, Chairperson of APINDO, stated that the toolkit can be used by businesses of all sizes, including SMEs, to move towards more responsible governance, strengthen industrial relations and enhance long‑term business sustainability.
"APINDO firmly believes that enterprises which respect human dignity and fundamental rights are more resilient and better prepared to face future challenges. RBC should be regarded not as a constraint but as a strategic investment, contributing to the development of a sustainable industrial ecosystem and supporting Indonesia's long‑term vision towards the Golden Indonesia of 2045."
Simrin Singh, ILO Country Director for Indonesia and Timor‑Leste, highlighted the collaborative effort behind this publication: "This toolkit is a product of genuine tripartite‑plus collaboration. It is our shared hope that it supports a thriving, sustainable and fair electronics sector in which economic growth goes hand in hand with dignity, rights and decent work for all."
