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COUNTRY REPORT THE OSH FOR SME’s IN INDONESIA

MINISTRY OF MANPOWER AND TRANSMIGRATION

OF INDONESIA

By dr. Mardiani Oemar, MM dr. Mardiani Oemar, MM

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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

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Ministry of Manpower and Transmigration

Directorate of Industrial

Relations Institution

Development

Secretariat DG

Directorate General of Industrial Relations and

Labor Standards

Directorate of Term of

Employment and Labor Disputes

Settlement

Directorate of Social

Security, Wages and Welfare

Directorate of Labor Norms Inspection

Directorate of Occupational Safety and

Health Standards

Structure and Organization ofMinistry of Manpower and Transmigration

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DIRECTORATE OF DIRECTORATE OF OCCUPATIONALOCCUPATIONAL SAFETY AND HEALTH STANDARDSSAFETY 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

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Ministry of Manpower and Transmigration

Secretariat DG

Directorate General of Labor Inspections

Directorate of Child and Woman

(Gender) Labor Norms

Inspection

Directorate of Occupational

Safety Inspections

(New) Structure and Organization ofMinistry of Manpower and Transmigration

Directorate of Occupational

Health Inspections

Directorate of General Labor

Norms Inspection

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DIRECTORATE OF DIRECTORATE OF OCCUPATIONALOCCUPATIONAL SAFETY INSPECTIONSSAFETY 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

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DIRECTORATE OF DIRECTORATE OF OCCUPATIONALOCCUPATIONAL HEALTH INSPECTIONSHEALTH 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

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ORGANIZATION STRUCTURE

MINISTER OF MANPOWER AND TRANMIGRATION

RESEARCH, DEVELOPMENT & INFORMATION BOARD

SECRETARIATE ADDMINISTRATION

NC RESEARCH AND

DEVELOPMENT OF MANPOWER

NC RESEARCH AND DEVELOPMENT OF TRANSMIGRATION

NATIONAL INSTITUTE

OF OHS

NC OFINFORMATION

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NATIONAL INSTITUTE OF OH&S

ANALYTICALDIVISION

OSH HUMAN RESOURCE DEVELOPMENT AND

PLANNING PROG. DIV.

GENERAL AFFAIR

DIVISION

SAFETYANALYTICAL

SUB DIV

INDUSTRIAL HYGIENE &

OCC. HEALTHSUB DIV

HUMAN RESOURCEDEVELOPMENT

SUB DIV

PLANNING PROGRAM SUB DIV

FINANCESUBDIV

PERSONNELSUBDIV

HOMEAFFAIRSUB DIV

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NationalNational Institution of OHS Institution of OHS

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

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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.

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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%)

Implementation of labour legal aspect

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Occupational Accident

Based on :o Accident report by companies to the MOMTo The data based on workers compensation insurance

Accident case by age and genderThe 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% fortotal accident, probably the types of task, woman are not

assigned to dangerous task in hazardous industry and the number, male bigger than female

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Accident Case at Indonesia

Year FatalityPermanent

DisablementTemporary

Disablement Total

1999 1476 11,871 78,163 91,510

2000 1592 12,025 85,285 98,902

2001 1768 12,566 90,440 104,774

2002 1903 10,345 91,556 103,804

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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 PAIDDuring 1999 to 2002 compensation paid has been increasing trends due to increasing number of companies and the reliance of workers to make claims.

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ACCIDENT CASE BY COMPENSATION PAID

During 1999 to 2002 compensation paid has been increasing trends.

Year Accident CaseCompensation

Paid (Rp)

1999 91,510 83,316,557,210

2000 98,902 102,439,839,461

2001 104,774 131,266,539,821

2002 103,804 158,045,163,678

July2003

51,528 89,799,905,006

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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.

PROFILE OF SME’s

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Act no2/89 about National Education System by 9 years basic education program.

PROMULGATED THE REGULATIONS CHILD LABOUR THERE ARE :

2. Presidential Instruction (Inpres) no.3/97 concerning build up children’s quality

4. Act no 4/79 on children’s welfare

3. Presidential decree ( Kepres) no 36/90 on children’s right

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

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To mainstream the children into schools or formal education

PROGRAM TO COMBAT CHILD LABOUR

2. Providing the children with skill training or vocational training through specialized training.

4. Convincing the parents about the risk associated with child workers and the importance education for the children by training.

3. Providing the children with scholarship

5. A Pilot research – Hazardous form child labour of palm oil plantation sector in Indonesia (in progress).

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Article 5, 20, 27 ayat Article 5, 20, 27 ayat (2)(2)

Article 3,9,10 ACT No.14 of 1969 Article 3,9,10 ACT No.14 of 1969 Article 86, 87 ACT No. 13 of 2003Article 86, 87 ACT No. 13 of 2003

ACT No. 1 of 1970ACT No. 1 of 1970

Implementing Regulation Implementing Regulation

Government Regulation Government Regulation Code of PracticeCode of Practice

Legal Aspect

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The main OSH legislation in Indonesia is Act no 1/1970The Act no 3/1992 on worker compensation ActLegislations 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.

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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 workplaceMinister 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.

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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 )

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Programs :

1. 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.

2. Improving the knowledge about OSH by educating and training for manager, supervisor, doctor, nurse, Committee members and others

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3. 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.

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

5. 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.

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6. Empowering of OSH inspectors to do their responsibility consistently.

7. Improving the number of inspectors by developing education and training.

8. Improving the quality of inspector in OSH.

9. Improving technical expert in OSH

10. Improving research in safety and occupational health to raise Indonesia laws, standard and other national regulations.

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11. 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.

12.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.

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13.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.

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

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ARIGATOThank You