January 2010
       

 

Weaving Research Into Advocacy and Policy Making

by DANIEL S. STEPHANUS, RATNO C. SEMBODO, and CECILIA SUSILORETNO
HOMENET  INDONESIA (MWPRI)

Homenet Indonesia weaves in research results  whenever dialogues with government authorities, stake holders and policy makers are  undertaken. This way,  research serves as  the basis for advocacy and policy making.  Some practical examples are described below.

In March 2009,  MWPRI held a dialogue with Malang Residence Vice Mayor and the press (Independent Journalist Alliance),  where a research on  the homebased workers of Malang Residency was presented. The result was encouraging because  the  Malang Vice Mayor asked  MWPRI to prepare the academic notes towards the drafting of a legal policy on informal workers, including  the homebased workers.

The FGD with the local government of Mojokerto City , East Java, in May 2009  resulted in the legal recognition  of Mojokerto City HWPRI.  Likewise, MWPRI was expected to do another research that will lead to a draft  social protection policy for homebased and informal workers.

MWPRI  organized a  social protection workshop where the research results on homebased workers in several cities were presented to Indonesia’s Women Empowerment Minister, December 2008. After the workshop, the group was tasked to conduct a follow up research towards the drafting of an economic and social protection policy for women homebased workers in the informal economy.

Exclusion of Homebased Workers
    Social protection in Indonesia is  extended by  various institutions - PT. ASKES, PT. JAMSOSTEK, PT. ASABRI, and PT. TASPEN -  each servicing different target groups.  For the poor, the Indonesian government shoulders premium payment for their  health insurance (ASKESKIN).  

However,   there is no social protection scheme nor program  that specifically targets the workers in the informal economy.  Not even under the Labour and Transmigrant Minister Act 24/2006, the Social Protection for Workers Who Work With No Industrial Relationship Program Implementation Standard. Informal workers  comprised 62% of the workforce in 2007,  and  more than half of these are  homeworkers, who are paid below the minimum wage regulation,  without occupational safety and health protection.   Under this situation, can the homeworkers ever gain access to their social protection rights?

The philosophy of social protection is to protect all the people of Indonesia. Under the 1945 Constitution, Chapter 5 (2), Chapter 20, Chapter 28H (1), (2), (3), and Chapter 34 (1),  people are protected from socio-economic and political risks. According to the ILO,  social security should be  universal and the implementation depends on the approach  of  each country.

Acts on Social Protection

In October 2004, the government released the 40/2004 Acts on the National Social Protection System or SJSN (Sistem Jaminan Sosial Nasional).  This was a radical change because this time, all Indonesian citizens are being granted access to a social protection system.  The old Social Protection System provides protection to formal workers through the Labor’s Social Protection (Jamsostek);  the state and federal staff through Pension Savings (Taspen);  and Health Insurance (Askes), Indonesia National Army through Indonesia National Army Insurance (ASABRI). 
       

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Upon closer scrutiny,  Chapters 2 and 3 of 40/2004 Acts  show that social protection will be extended under certain conditions such as sickness, accident, loss of  job, old age, etc.   While the said legislation is a big step ahead,  millions of Indonesian  workers are still fighting for the revision of the Minimum Wages Regulation, which is based on the 17/2005 Indonesia Labor and Transmigration Decree.  Many observed that the 40/2004 Acts is better than  the 17/2005 Decree  because when seen from the minimum wages regulation aspect, 17/2005 Decree covers  just a single worker, but 40/2004 Acts includes the worker and family members.

The 40/2004 Acts exists to remove the dichotomy between formal and informal workers, as  can be seen in Chapter 1, Number 8:“The participant is everyone, including the foreigners working in Indonesia for a  minimum of 6 (six) months, and pay the member’s contribution fee.”

The 40/2004 Acts simply  requires registering and payment of  member’s contribution to the Social Protection Institution, then the single identity number will be given to the participant and all family members.  Among the HBWs,  wages are far below the minimum wage. How can they afford to pay their  contribution fee?  The 40/2004 Acts Chapter 13 and 14 explain the procedure:

The employer must register the employee to the National Social Protection Institutions and pay the  member’s contribution fee.  The contribution fee is based on the share of the employer and employee agreement.  For subcontracted homebased workers, their wages are very small and even far below the minimum wages. If the wage is cut for contribution fee, will there be money left?  Government must pay for  contributions of people  who live in extreme poverty;  it should also open the opportunity for HBWs  to access  social protection.   

 
The 40/2004 Acts  will also give  subsidy for the health insurance  of all the Indonesian people within five years.  Indeed, the 40/2004 Acts bring the wind of change –showing that the Indonesian Government giv es attention and does not neglect the Indonesian     people’s need for  social protection.  

But, until the deadline of the 40/2004 implementation, October 19,  2009, there has been no concrete step and regulation to operate the National Social Protection System.  In order to  realize  the  gains,   there must be changes in the regulations,  and a strong willingness to improve the HBWs’ welfare and to increase their bargaining position.  The HBWs should  not be excluded, marginalized and subordinated in the development process of Indonesia. Speaking in unison, HBWs need to work for (1) rati-fication of the ILO Convention 177 on Home Work,   to give protection to homebased workers to help them achieve a decent life;.and (2) the concrete implementation of 40/2004 Acts on The National Social Protection System before the October 19,  2009  deadline.