Batam, March 12, 2025 – The International Labour Organization (ILO) successfully held a workshop on the implementation of Responsible Business Conduct (RBC) guidelines in Indonesia’s electronics sector. This workshop is in collaboration with the Indonesian Employers Association (APINDO) and the Indonesian Human Resource Practitioners Association (IPSM), bringing together key stakeholders to promote ethical business practices and decent work in one of Indonesia’s priority industries. This initiative was supported by the Government of Japan, further strengthening efforts to integrate responsible business practices within the sector.
The electronics sector has been identified as one of Indonesia’s key industries, contributing significantly to economic growth and employment, especially for female workers. However, despite this progress, challenges remain in ensuring fair working conditions, particularly in areas such as employment contracts, occupational health and safety, and industrial relations. Recognizing these concerns, the Resilient, Inclusive, and Sustainable Supply Chain (RISSC) Project was launched to support businesses in strengthening ethical and sustainable supply chains.
The workshop provided a platform for industry leaders and experts to exchange insights on integrating RBC into business operations. Discussions were guided by international frameworks such as the United Nations Guiding Principles on Business and Human Rights (UNGPs), the ILO Multinational Enterprises (MNE) Declaration, and the OECD Guidelines for MNEs. These frameworks align with Indonesia’s National Strategy on Business and Human Rights (2023-2025) and Japan’s National Due Diligence Guidelines, reinforcing the importance of businesses safeguarding human rights within their operations and supply chains.
Key Takeaways from the Opening Remarks
During the opening remarks, Mr. Tauvik Muhamad, Programme Coordinator of ILO RISSC for Indonesia, emphasized the need to address challenges in the electronics sector. “There are ongoing challenges in ensuring decent work in the electronics sector. It is important to ensure that this sector has already integrated decent work and RBC into business operations,” he stated.
Building on this, Mrs. Fifien Marsaulina Sitorus, Chair of IPSM, highlighted the importance of responsible business practices, citing the Pertamina case as an example. “Implementing RBC is crucial for maintaining public trust and enhancing corporate reputation,” she explained. She emphasized that ethical business conduct helps prevent human rights violations and mitigates risks across supply chains.
Adding a regional perspective, David Williams, Manager of ILO RISSC for Asia & the Pacific, spoke about the increasing demand for RBC in Asia. “There are growing trends and demands for RBC in Asia. While the guidance is for all companies regardless of their size, SMEs need additional tools and support to implement RBC,” he stated, stressing the need for practical guidance tailored to smaller businesses.
Government and Business Perspectives on RBC
Mr. Chairul Saleh, Assistant Deputy for Productivity Improvement and Employment Ecosystem Development at the Coordinating Ministry for Economic Affairs, highlighted how mainstreaming RBC in the electronics sector aligns with Indonesia’s ambition to become an OECD member. He explained, “Through Danantara, economic growth is expected to soar as investment from Japan, the United States, Singapore, and other nations will flow in. Therefore, the government’s primary mission is to strengthen economic resilience through skills development, job creation, and RBC implementation.”
Representing GRI/KADIN/APINDO, Mrs. Lany Harijanti underscored the critical role of Human Rights Due Diligence in responsible business conduct. “Human Rights Due Diligence is crucial in identifying, mitigating, and preventing human rights risks and adverse impacts,” she stated, emphasizing the need for proactive business practices.
Presentation of the Guidance Toolkit
A key highlight of the workshop was the presentation of the Guidance Toolkit for Decent Work, Skills Development, and Responsible Business Conduct for the Electronics Sector. Mrs. Ratih Ananda Putri Goestoro, FIHRRST Programme Coordinator for Business and Human Rights, and Mr. Unang Mulkhan, FIHRRST Senior Specialist for Business and Human Rights, introduced the toolkit, which is designed to assist companies in integrating RBC into their daily operations. Participants were invited to provide feedback to ensure the guidelines remain practical and effective for businesses of all sizes.
A Step Forward for Indonesia’s Electronics Sector
The Batam workshop marked an important step in advancing Responsible Business Conduct in Indonesia’s electronics industry. Moving forward, the RBC Guidance Toolkit will be refined based on industry feedback and piloted at the company level, particularly among Medium Enterprises (MEs) in global supply chains.
The ILO RISSC Project, in partnership with APINDO, IPSM, and other stakeholders, remains committed to fostering a more resilient, inclusive, and sustainable supply chain. By continuing to collaborate and build capacity within the industry, Indonesia’s electronics sector is well-positioned to set new standards in ethical business practices, ensuring that economic growth and responsible business conduct go hand in hand.