Indonesian Political, Business & Finance News

HIMKI pushes for productivity-based labour policy

| Source: ANTARA_ID Translated from Indonesian | Regulation
HIMKI pushes for productivity-based labour policy
Image: ANTARA_ID

Worker protection is a fundamental principle. However, in the context of the manufacturing industry, that protection must go hand in hand with increasing productivity and industrial flexibility.

Jakarta (ANTARA) - The Indonesian Furniture and Handicraft Industries Association (HIMKI) is pushing the government to formulate labour policies that place greater emphasis on productivity and global competitiveness, in line with the challenges facing manufacturing due to geopolitical dynamics.

HIMKI General Chairman Abdul Sobur, in a statement confirmed in Jakarta on Wednesday, emphasised that worker protection remains an important principle in national industrial development.

However, according to him, such policies must be balanced with the need to increase efficiency and industrial flexibility.

“Worker protection is a fundamental principle. But in the context of the manufacturing industry, that protection must go hand in hand with increasing productivity and industrial flexibility,” he said.

He explained that the pressures on Indonesia’s manufacturing industry do not only come from global market dynamics but also from various domestic factors, such as suboptimal worker productivity to rising production costs.

In the context of labour policies, Abdul Sobur assessed that a uniform approach cannot be applied to all sectors. He gave an example that flexible work policies like work from home (WFH) are more relevant for the services sector, but not entirely suitable for manufacturing, especially labour-intensive ones.

HIMKI assesses that to strengthen the manufacturing sector, labour policies must be able to maintain a balance between worker protection and business sustainability.

As a strategic step, HIMKI is pushing for output- and productivity-based flexible work policies, incentives for companies investing in training and technology, and the development of a wage system that accommodates performance incentives.

In addition, the government is also seen as needing to strengthen worker skills enhancement programmes that align with industry needs.

He reminded that perceptions at the implementation level are often influenced by public communication dynamics and industrial relations in the field.

Previously, the Ministry of Industry (Kemenperin) targeted Indonesia to become a global furniture manufacturing hub through strengthening sustainable wood downstreaming and enhancing national industry competitiveness.

Industry Minister Agus Gumiwang Kartasasmita, in his statement in Jakarta on Friday (6/3), conveyed that the furniture industry is a crucial model of wood downstreaming because it is labour-intensive, able to create added value, and provides multiplier effects for domestic economic growth.

Over the next five years, Indonesia is projected not only to increase production capacity but also to lead in aspects of design and sustainability.

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