COUNTRY REPORT THE OSH FOR SME’s IN INDONESIA

1. COUNTRY REPORT THE OSH FOR SME’s IN INDONESIA MINISTRY OF MANPOWER AND TRANSMIGRATION OF INDONESIA By dr. Mardiani Oemar, MM

2. 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

3. 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 LaborNorms Inspection

4. 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

5. (New) Structure and Organization of Ministry of Manpower and Transmigration Ministry of Manpower and Transmigration Directorate General of Labor Inspections Secretariat DG Directorate of Occupational Safety Inspections Directorate of Child and Woman (Gender) LaborNorms Inspection Directorate of General LaborNorms Inspection Directorate of Occupational Health Inspections

6. 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

7. 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

8. ORGANIZATION STRUCTURE MINISTER OF MANPOWER AND TRANMIGRATION RESEARCH, DEVELOPMENT & INFORMATION BOARD SECRETARIATE ADDMINISTRATION NC RESEARCH AND DEVELOPMENT OF TRANSMIGRATION NATIONAL INSTITUTE OF OHS NC RESEARCH AND DEVELOPMENT OF MANPOWER NC OF INFORMATION

9. NATIONAL INSTITUTE OF OH&S ANALYTICAL DIVISION OSH HUMAN RESOURCE DEVELOPMENT AND PLANNING PROG. DIV. GENERAL AFFAIR DIVISION FINANCE SUBDIV SAFETY ANALYTICAL SUB DIV HUMAN RESOURCE DEVELOPMENT SUB DIV PERSONNEL SUBDIV INDUSTRIAL HYGIENE & OCC. HEALTH SUB DIV PLANNING PROGRAM SUB DIV HOME AFFAIR SUB DIV

10. National Institution of OHS The function of NIOHS are conducting research, developing information and skill, information exchange (training), standardization and services in OSH

11. 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 ENTERPRISESMAJORITY OF COMPANIES ARE SMALL , AND THE MAJORITY OF WORKFORCE IN THAT COMPANIES.

12. 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%)

13. Occupational Accident • Based on : • Accident report by companies to the MOMT • 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

14. Accident Case at Indonesia

15. 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.

16. ACCIDENT CASE BY COMPENSATION PAID During 1999 to 2002 compensation paid has been increasing trends.

17. 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.

18. 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

19. 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).

20. Legal Aspect Article 3,9,10 ACT No.14 of 1969 Article 86, 87 ACT No. 13 of 2003 ACT No. 1 of 1970 Article 5, 20, 27 ayat (2) Implementing Regulation Government Regulation Code of Practice

21. Policy and Legislation Framework on OSH • 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.

22. Policy and Legislation Framework on OSH • 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.

23. 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 )

24. Programs : • 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. • Improving the knowledge about OSH by educating and training for manager, supervisor, doctor, nurse, Committee members and others

25. 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. • Government encourages other parties such as private consultant, university, and professional association to participate in providing counseling on OSH for small and medium enterprises. • 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.

26. Empowering of OSH inspectors to do their responsibility consistently. • Improving the number of inspectors by developing education and training. • Improving the quality of inspector in OSH. • Improving technical expert in OSH • Improving research in safety and occupational health to raise Indonesia laws, standard and other national regulations.

27. 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. • 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.

28. 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. • Make effort that OSH matters could put in the curriculum to formal education.

29. ARIGATO Thank You