ILO Launches Toolkit to Strengthen Labour Rights in Indonesia’s Electronics Sector

Indonesia’s electronics industry has become a major engine of economic growth, technological innovation and job creation.

The International Labour Organization (ILO), in partnership with the Indonesian Employers’ Association (APINDO), has launched a practical toolkit aimed at helping small and medium-sized enterprises (SMEs) strengthen labour rights and responsible business practices in Indonesia’s fast-growing electronics sector.

Developed under the Resilient, Inclusive and Sustainable Supply Chains (RISSC) Project, the guide supports companies as they face increasing expectations from global markets to demonstrate respect for human rights, labour standards and sustainable supply chain practices.

Supporting responsible growth in a key industry

Indonesia’s electronics industry has become a major engine of economic growth, technological innovation and job creation. As the sector becomes more integrated into global value chains, companies are under growing pressure from consumers, investors and international trade partners to ensure ethical and responsible production.

The newly launched toolkit, “Responsible Business for Decent Work in the Indonesian Electronics Sector: A Guide for SMEs,” provides practical guidance to help enterprises implement Responsible Business Conduct (RBC) and Human Rights Due Diligence (HRDD).

The guide translates international standards into practical steps businesses can integrate into existing management systems, helping companies identify and address labour-related risks across operations and supply chains.

Practical guidance for companies and supply chains

The toolkit provides step-by-step guidance for enterprises to:

• Identify key labour rights risks within their operations

• Strengthen workplace policies and management systems

• Engage effectively with workers, suppliers and other stakeholders

• Align corporate practices with international human rights standards

It also highlights common labour issues faced in manufacturing supply chains and offers tools and examples for companies seeking to improve working conditions and strengthen compliance with international norms.

Aligning with international labour and business standards

The guidance is aligned with several globally recognized frameworks that promote responsible business conduct, including:

• The ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (ILO MNE Declaration)

• The UN Guiding Principles on Business and Human Rights (UNGPs)

• The OECD Guidelines for Multinational Enterprises

These frameworks recognise international labour standards as the foundation of responsible business conduct, emphasizing the importance of protecting workers’ rights while supporting sustainable economic growth.

A resource for companies, workers and policymakers

The toolkit is designed for a broad range of stakeholders across Indonesia’s electronics supply chains, including:

• Senior managers and operational leaders in electronics manufacturers

• Procurement, supply chain and sustainability professionals

• Indonesian suppliers and SMEs

• Employers’ organisations and business associations

• Worker representatives and trade unions

• Government agencies responsible for trade, investment and labour policies

By targeting multiple actors, the guide aims to support coordinated efforts across the industry to promote decent work and responsible supply chains.

SMEs key to responsible supply chains

APINDO Chairperson Shinta Widjaja emphasized the importance of supporting SMEs in adopting responsible business practices.

She noted that enterprises that respect human dignity and fundamental rights are more resilient and better prepared to meet future economic challenges.

“Responsible Business Conduct should be regarded not as a constraint but as a strategic investment,” she said.

Widjaja added that strengthening responsible governance and industrial relations will help build a sustainable industrial ecosystem aligned with Indonesia’s long-term development vision, known as ‘Golden Indonesia 2045.’

Collaboration to advance decent work

ILO Country Director for Indonesia and Timor-Leste, Simrin Singh, highlighted that the toolkit is the result of a collaborative “tripartite-plus” process, involving employers, workers and other stakeholders.

“This toolkit is a product of genuine tripartite-plus collaboration,” Singh said.

“It is our shared hope that it supports a thriving, sustainable and fair electronics sector in which economic growth goes hand in hand with dignity, rights and decent work for all.”

The initiative is part of broader efforts by the ILO and its partners to promote resilient, inclusive and sustainable global supply chains, ensuring that economic development also advances workers’ rights and social justice.