Independent Evaluation of the ILO’s Decent Work Country Programme for Indonesia: 2006–2009 International Labour Organization October 2009 Prepared by Michael Hendricks Craig Russon Leya Cattleya Copyright © International Labour Organization 2009 First published 2009 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected] . The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. ILO Cataloguing in Publication Data Hendricks, Michael; Russon, Craig; Cattleya, Leya Independent evaluation of the ILO's Decent Work Country Programme for Indonesia: 2006-2009 / Michael Hendricks, Craig Russon, Leya Cattleya; International Labour Office. - Geneva: ILO, 2009 1 v. International Labour Office ISBN print: 978-92-2-122852-3 ISBN web pdf: 978-92-2-122853-0 Decent work / technical cooperation / ILO Programme / programme evaluation / Indonesia 13.01.1 ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. 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Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected] Visit our website: www.ilo.org/publns Printed in Switzerland i Preface This report was prepared by an evaluation team led by Michael Hendricks, international evaluation consultant, Craig Russon, Senior Evaluation Officer in the ILO Evaluation Unit, and Leya Cattleya, national evaluation consultant. Detoubab Gueye, ILO Research Assistant, conducted several special analyses for the report. The evaluation was carried out under the leadership of Moucharaf Paraiso, Director of the ILO Evaluation Unit. Pamornrat Pringsulaka, Evaluation Officer for the ROAP, and Parissara Liewkeat of ILO Jakarta provided strong support to the evaluation team. Special thanks are due to the entire staff of ILO Office in Indonesia, in particular Alan Boulton, Country Director, and Peter van Rooij, Deputy Country Director, for their generous and frank sharing of a wide variety of information. Thanks also to the numerous ILO stakeholders in Jakarta and Aceh, especially key members of the Government of Indonesia, the Employers’ Association of Indonesia (APINDO), and various workers’ organizations, who agreed to be interviewed for the evaluation, and to officials of ILO’s Regional Office for Asia and the Pacific (ROAP) and staff in Manila. The draft report of the evaluation benefited from helpful and constructive suggestions from numerous stakeholders. However, any errors or omissions are entirely the responsibility of the evaluation team. ii CONTENTS PREFACE ............................................................................................................................................................. II ABBREVIATIONS ................................................................................................................................................ VI EXECUTIVE SUMMARY ...................................................................................................................................... VII 1. INTRODUCTION ......................................................................................................................................... 1 1.1 Context: ILO’s country programme evaluation .................................................................................... 1 1.2 Purpose of the evaluation ...................................................................................................................... 1 1.3 Scope and methodology ......................................................................................................................... 1 1.4 Limitations of the evaluation ................................................................................................................. 2 1.5 Report layout ......................................................................................................................................... 3 2. INDONESIA : A DECADE OF CHANGES AND CHALLENGES ........................................................................... 3 2.1 Industrial relations history .................................................................................................................... 3 2.2 Medium-Term Development Plan 2004–2009....................................................................................... 4 2.3 Aceh tsunami of 2004 ............................................................................................................................ 4 2.4 Financial crisis of 1997 ........................................................................................................................ 5 2.5 Economy ................................................................................................................................................ 5 2.6 Labour rights and legal framework ...................................................................................................... 6 2.7 Employment and decent work issues ..................................................................................................... 7 2.8 Challenges for the ILO in Indonesia ................................................................................................... 11 3. ILO’ S DECENT WORK COUNTRY PROGRAMME IN INDONESIA ................................................................ 12 3.1 History of country programming in Indonesia .................................................................................... 12 3.2 DWCP priorities and outcomes ........................................................................................................... 12 3.2.1 Priority A: Stopping exploitation at work ............................................................................................... 12 3.2.2 Priority B: Employment creation for poverty reduction and livelihoods recovery, especially for youth . 13 3.2.3 Priority C: Social dialogue for economic growth and principles and rights at work .............................. 14 3.2.4 Cross-cutting issues in the DWCP ......................................................................................................... 14 3.3 DWCP document analysis ..................................................................................................................... 14 3.3.1 Overall structure ..................................................................................................................................... 14 3.3.2 Indicators, baselines, targets and milestones .......................................................................................... 15 3.3.3 Quality of elements ................................................................................................................................ 16 3.3.4 Links to UNDAF and national development plans ................................................................................. 16 3.3.5 Issues that may not be discussed sufficiently ......................................................................................... 16 4. KEY FINDINGS OF THE EVALUATION ........................................................................................................ 17 4.1 Comparative advantages ..................................................................................................................... 17 4.1.1 Roles of the ILO in Indonesia ................................................................................................................ 18 4.2 Tripartite constituents and other partners .......................................................................................... 18 4.3 DWCP Implementation strategy .......................................................................................................... 22 4.4 ILO’s response to the December 2004 tsunami in Aceh ..................................................................... 34 4.5 Resources mobilized ...........................................................................................................................