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Sat, 28 Feb 2004

JP/Businesses to launch UN's Global Compact

Businesses to launch UN's Global Compact

Leony Aurora, The Jakarta Post, Jakarta

Business entities in Indonesia will launch Global Compact -- a United Nations' (UN) initiative that calls for heightened awareness of human rights, and the environment among entrepreneurs -- in Jakarta on Saturday.

The launch is sponsored by the Indonesian Employers Association (Apindo) and the International Labor Organization (ILO).

Global Compact promotes nine principles concerning human rights, labor, and the environment.

In terms of labor, businesses are asked to uphold freedom of association and recognize the right to collective bargaining. All forms of forced labor, child labor, and discrimination in respect to employment and occupation should be eliminated, according to the compact.

"Global Compact will improve Indonesia's standing before the international business community," said secretary-general of Apindo Djimanto.

This, in turn, might attract more investment and better economic relationships, he added.

Commitment to the compact was voluntary and not legally binding, said Djimanto. The implementation of the principles would be according to the ability of each company.

A Global Compact team will be established, comprising of representatives of UN organizations on labor, human rights, environment, and development. Representatives of Apindo, which has about 19,000 members across the country, will also be included.

The team would monitor companies, which had stated their commitment to the pact, and provide guidance on the implementation of programs, said Djimanto.

Committed companies, labor organizations and non-governmental organizations could post their activities on the UN Global Compact website, which would serve as an exchange forum.

Global Compact was initiated in January 1999 by UN Secretary-General Kofi Annan. So far, some 1,272 companies and organizations from 46 countries have signed up.

Indonesia has been trying to attract more foreign direct investments, which since the monetary crisis in 1997 have recorded a negative balance yearly.