The Indonesia Business Forum (IBF) 2025, organized by Better Work Indonesia (BWI)—a joint programme of the International Labour Organization (ILO) and the International Finance Corporation (IFC)—brought together around 130 key stakeholders in Jakarta to promote Human Rights Due Diligence (HRDD) in the garment sector. Under the theme “The Power of Unified Efforts in Driving Sustainable Progress,” the forum highlighted the importance of collaborative partnerships in ensuring labour law compliance, promoting fair industrial relations, and advancing sustainable practices within Indonesia’s garment industry. The discussions focused on integrating BWI’s best practices into national frameworks to ensure long-term industry sustainability and decent working conditions for all.
Representing the ILO Country Director for Indonesia and Timor-Leste, Kristina Kurths commended the strong collaboration among the Indonesian government, employers’ and workers’ organizations, international buyers, and development partners. She emphasized the ILO’s continued support for the next chapter of BWI’s work under the Kemitraan Kerja Foundation (KKF), aimed at enhancing competitiveness, compliance, and inclusion within the garment industry.
Two interactive panel discussions formed the core of the event. The first, a tripartite panel of industry leaders, focused on trade and due diligence frameworks such as the EU-Indonesia Comprehensive Economic Partnership Agreement (EU-CEPA) and HRDD principles. Speakers discussed how these frameworks are shaping responsible sourcing globally. Jerome Pons, Head of Cooperation at the EU Delegation to Indonesia, described the EU-CEPA as a “historic agreement” that would enable the shift from free trade to sustainable trade by promoting stronger protection of workers’ rights, gender equality, and labour law compliance. Eko Purwantoro of the National Workers’ Union (SPN) highlighted that HRDD strengthens trade unions’ roles, while Anne P. Susanto of the Indonesian Employers’ Association emphasized the need to balance responsible business with productivity and efficiency to attract investment.
The second panel featured representatives from the Ministry of Manpower’s Labour Inspection and Occupational Safety and Health Directorate General, who raised awareness about the revised Fixed-Term Employment Contract (PKWT) Guidelines under Indonesia’s Job Creation Law. Officials Gian A. Sugandi and M. Nico D. Priastomo explained that PKWT contracts are meant for specific, time-bound roles lasting no more than five years, after which they should be converted into permanent contracts (PKWTT) to avoid labour violations.
The forum concluded with presentations of best practices from high-performing factories in the garment industry. PT Ungaran Sari Garments, recognized as a high-performing factory since 2018, shared its success in maintaining compliance, fostering social dialogue, and investing in automation to stay competitive. PT Uwu Jump Indonesia, based in Subang, showcased its digital learning platform that provides workers with access to employment information, training opportunities, and communication channels with management. Meanwhile, PT TPINC Trading Jakarta highlighted its inclusive and transparent workplace culture, conducting annual employee surveys, holding direct bipartite elections, and providing support facilities such as lactation rooms and employment opportunities for persons with disabilities.
The event demonstrated how collective commitment among government, business, and labour stakeholders can strengthen responsible business practices and ensure that Indonesia’s garment industry continues to grow sustainably—creating a model for inclusive, fair, and future-ready workplaces.
