Mapping Survey : Bali and Surabaya
(This is based on an executive summary written by Medelina
Hendytio of CSIS)
The informal sector in Indonesia accounts for
65 percent of total employment. Research has shown that 20 percent
of workers in the informal sector are homebased workers (HBWs),
and two-thirds of them are women. They remain invisible because
they are left unrecorded in labor force statistics, their contribution
to household income neglected, and their location unidentified.
Past research efforts provided partial or incomplete information
which do not reveal varying degrees of HBWs’ vulnerability.
This study, which focused on women HBWs involved
in specific types of jobs in certain areas of Bali and Surabaya,
aimed to complement information that had been previously obtained.
It sought to surface specific problems faced by women HBWs so
that policies could be formulated to improve their social and
economic conditions. While presenting new findings, it also confirmed
those highlighted in previous researches.
The mapping survey identified the specific location
of HBWs, the type of work that they do, and their economic conditions
relative to their job. Bali and Surabaya were chosen as study
areas based on the information on the type of jobs available in
each location as sourced from local industrial statistics. Bali
as a tourist destination produces handicraft to support the thriving
tourism sector. Surabaya is an industrial area where majority
of HBWs support the manufacturing industry. Different methods
were applied in the two areas. This allowed more flexibility in
culling out various information to better understand the HBWs’
social and economic conditions.
Bali is a new area where HomeNet Indonesia plans
to implement its advocacy and development program. In Bali, besides
conducting the survey to know the conditions of the HBWs, mapping
technique was also applied. The survey was done to collect information
related to social and economic status, production-distribution
process, market chain, working conditions, and motivation to organize.
Mapping identified the locations of workers and the type of jobs
that they do.
Capturing HBWs’ socio-economic conditions
and the problems that they face, with particular attention to
the industry sector, was the emphasis in Surabaya. To elicit group
perception on several issues, survey and focus group discussions
were employed. Mapping technique was not conducted since the incidence
of HBWs and the types of jobs they held were already known. The
number of respondents in both Bali and Surabaya was 120, all of
whom were women with production quotas.
Marital Status and Age as Correlated
with Homework
The study indicated that marital status is an
important factor since homebased work provides flexibility for
married women to perform their dual roles as housewives and
as workers. Ninety percent of respondents in Surabaya and Bali
were married. Respondents with ages ranging from 15 to 45 were
able to do homebased work for as long as it did not require
a lot of energy to do the job. There were only few respondents
45 and above (only 10 percent in Bali and three percent in Surabaya)
due to the monotonous nature, dexterity, and long hours of work
required.
Women HBWs in Relation to their
Families
Thirty percent of the respondents mentioned that
their husbands regarded them as breadwinners comparable to men
as well as the source of added income for the family. The latter
view implies the secondary role that women play in their families
since the men are considered as the main breadwinners.
Half of the respondents in Bali and Surabaya
worked without getting help from anyone. The rest of the respondents
stated that they got help from family members such as husbands,
in-laws, or children who did not get paid for helping. More
than half of the respondents said that they could not get another
job because of inability to leave the house. Their obligation
to perform domestic work prevented them from being more economically
productive. This indicates the absence of partnership within
the household whereby domestic work becomes the responsibility
of both men and women.
Informality of Homebased Work
Communication between HBWs and their subcontractors
was all verbal and none relied on written record or written
work agreement. This situation emphasized the role played by
intermediaries who gave out the work, deadline and payment.
In this study, more than half of the respondents obtained their
work from intermediaries, which put them at a disadvantage.
HBWs were always at the mercy of the employer, if not the intermediary.
They need to be empowered by encouraging them to learn about
their rights such as demanding an agreement before accepting
work.
Varying Degrees of Vulnerability
There were differences in the degree of vulnerability
between homeworkers in the industrial sector in Surabaya and
those in the tourism sector in Bali. This meant that the type
of job had a bearing on the workers’ economic conditions.
In this study, workers producing certain handicrafts in Bali
were paid relatively better than those who worked in the manufacturing
sector in Surabaya. These goods include finely made Balinese
traditional woven material, silver work, and works of art. The
piece rate payment for these comprise a much higher cost share
in the production process than that in Surabaya.
In Bali, 82 percent of the respondents said
that their decision to participate in homebased handicraft work
was based on the fact that it gave them significant income.
However, it should be borne in mind that the cost of living
in Bali is higher than in Surabaya.
The piece rate for respondents in manufacturing
was too low(US$ 1 cent –US$ 1.5) compared to the time
spent in doing the job. The respondents in Surabaya said that
their main reason for working as HBWs was the flexibility in
work hours which enabled them to do other work. Only 32 percent
of the respondents said that the homebased work was their main
source of income, meaning that their income as HBWs was insufficient
to meet their basic daily needs.
However, the majority of respondents both
in Bali (90 percent) and in Surabaya ( 78 percent) admitted
that homebased work was very useful for generating additional
income even though it was not much.
Almost all respondents stated that homebased work was exhausting.
Homebased Work not just a Side
Job
Sixty two percent of respondents in Surabaya and
58 percent of respondents in Bali worked between seven to 10
hours per day. This indicated that homebased work was not only
a side job, consistent with the response given by 82 percent
of respondents in Bali and 73 percent of respondents in Surabaya
that homebased work was their main job. Generally, they spent
six days a week doing homebased work, although the type of work
might vary. The long hours needed to do homebased work made
it a tiring job, contradicting the opinion that homebased work
was only for killing time.
While it was true that HBWs had flexible hours
and were free to choose when to work and when to take their
break, during the peak season, flexibility ceased to exist since
they were required to meet their production quotas regardless
of the number of hours they had already put in.
Homebased Work: The Best Choice?
Although more than 70 percent of the respondents considered
their job to be their main activity, this work was not their
first choice. The respondents in Surabaya and Bali claimed that
their main reason for taking homebased work was because there
were no other jobs or that there was no opportunity to look
for another job. The lack of capital and marketing skills was
cited as the main obstacle for the HBWs in both the handicraft
and manufacturing industries from becoming self-employed.
Despite these, only 20 percent of the respondents
from Bali and merely 15 percent of the respondents in Surabaya
stated their intention to quit. This could mean that although
homebased work did not improve their social and economic status,
it was still of benefit to them. This could also imply the workers’
total inability to find an alternative job.
Marketing Skill Lacking
Fifty six percent of the respondents in Bali and
81 percent of respondents in Surabaya knew the subsequent processes
applied to their unfinished products. More than 67 percent of
the respondents in the two areas of survey did not know the
brand or label of their products in the market and just half
of the respondents knew where their products would be sold.
However, from the FGDs, the majority of the respondents did
not know how their employers entered the market and what marketing
strategy they employed. This was cited by the HBWs as a hindrance
to self- employment and their desire to be independent workers.
Unhealthy Work Place
Forty eight percent of respondents in Surabaya
and 33 percent in Bali listed health problems related to work.
This was due to their unhealthy work place, usually a dirty,
dark, cramped working area, lacking in ventilation. HBWS also
had a low awareness of occupational health and safety. Common
health problems cited by workers in Surabaya included back pain
(92%), joint pains (60%), strained neck (32%), and headache
(60%), while 28% had met accidents in their work place. In Bali,
HBWs suffered from joint ache (57%), back pain (38%), eye infection
(14%), and stiff neck (46%). Given such situations, it is imperative
that health and safety issues be addressed.
The Need to Organize
Competition among large numbers of workers for the small number
of available jobs contributed to low wages. It was in this context
that majority of the respondents (83 percent in Surabaya and
72 percent in Bali) recognized the pressing need to organize
or to create associations with other HBWs for stronger bargaining
power with subcontractors. Organizations also serve as avenues
for linking or communicating with fellow workers, and for voicing
issues and concerns.
Recommendations
For so long as the government is unable to create
sufficient employment in the formal sector, home-based work remains
an important source of livelihood for many people, especially
married women. Unfortunately, low wages, lack of social protection,
and poor working conditions characterize this type of work. Future
government policy must target wage increase and improved working
conditions. A different minimum wage policy that addresses the
problem of informality is being recommended to prevent the exploitation
of HBWs.
Community-based action programs to increase
awareness on the importance of a healthy working environment should
be jointly undertaken by government and non-governmental bodies
such as NGOs. Special attention must be given to those working
in extremely poor working conditions. To increase HBWs’
visibility, statistics from the Central Bureau of Statistics (CBS)
should treat them as a separate entity instead of just being an
undefined part of the informal sector.
In order to improve the HBWs’ bargaining
power, the necessary support should be given to the formation
of an organization whose aim is to improve their welfare in the
areas which have been studied.
Aside from macro policies aimed at protecting HBWs, the Ministry
of Manpower should also increase the number of company inspectors
in order to prevent further decline in the workers’ socio-economic
conditions attributed to unfair worker-employer relations. However,
it should also be noted that despite increased company inspectors,
abuse of power is still likely. This needs to be prevented in
order to attain the desired objective of improving the workers’
welfare.
There is an immediate need for credit provision
and the promotion of workers’ awareness of their rights,
especially for those who desire to improve their social and economic
status. For the self-employed, there is also a need to improve
and further hone their marketing skills, which may be helpful
in obtaining assistance for that much needed capital.
Follow-up Actions
Eventually, the CBS agreed to conduct a survey
on homebased workers as an annex to the National Socio Economic
Survey 2003 (SUSENAS 2003) with the financial support from the
Asian Development Bank. Meanwhile NGOs, namely YPSI and YPP, have
planned community based action and advocacy to address HBWs’
issues.
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