FES contributes to the German-Indonesian exchange on how to prepare for the fourth industrial revolution

The event brought together employers, workers and policy makers from Indonesia, Germany and beyond as well as international organizations, for a constructive discussion on how to move forwards while preserving the interests of all parties involved. “It was a good opportunity for FES to cement our working relationship with the Ministry of Manpower, and to encourage the dialogue between social partners,” Grassi said.

Representatives of the German metalworkers’ union IGMetall and other sectors related their own experience of safeguarding workers’ rights during technological upheaval. There was a particularly emphatic exchange over the employment policy of transport-sharing app Go-Jek.

The company, which signed up 400,000 drivers within three years, is a prominent example of how the tech-based enterprises are already changing the labour market. Worker representatives at the Labour 4.0 conference commented that they contribute to the company as employees but are defined as “partners” of the parent company. 

However, the event gave them the opportunity to confront company representatives with their perceptions, and also to hear the executives’ side of the story: namely, that Go-Jek does not have the resources to establish a formal employers-employee relationship. In fact, they said, their business model and the availability of this flexible work actually depends on its informal status.

“With both sides able to speak, the forum at least allowed each to hear and acknowledge the challenges and constraints faced by the other, even if no definite long-term solution was finalized,” Grassi said. 

FES first established a base in the country in 1968 and has also been working in other areas. The majority-Muslim but multi-religious country spans thousands of islands and more than 700 languages. Unity in diversity at a national level is supposedly cemented according to the principles of Pancasila, a motto that approximates to inclusion amid diversity. However, a recent increase in polarized identity politics—a trend that can be observed globally - has raised concerns that tolerance in Indonesia is under threat.

FES has also been working with local partners on the growth of the country’s cities. Indonesia is seeing rapid urbanization, and urban planning in many cities has focused on the principle of the smart city. Yet the Smart City concept primarily pleases technology and construction interests as well as some other private investors. By contrast, data protection and—especially—the social aspects of urban development are being put on the back burner as the city’s social functions are de-emphasized. 

Hence FES promotes the questioning of the established top-down mode of central planning in favour of a more participatory, stakeholder-driven approach.

“We want to demystify the Singapore model,” Grassi said, referring to the concept widely held throughout South-East Asia that the high-tech city-state is the best regional example of development. The structures of government, land and real estate ownership do not apply to Indonesia, he explained. Top-down infrastructure developments in Jakarta’s Ahok era resulted in the eviction of more than 16,000 mostly poor residents, with little consultation or compensation.

Many urban Jakartans remain indifferent to the need for inclusive governance in their city – Artanti Wardhani (FES)

FES instead promotes a Social City approach to urban development, Grassi said. “This is a holistic and collaborative urban development concept that strives for affordable housing, affordable mobility and civil participation, while it intends to avoid social and cultural segregation. It promotes bringing citizens and residents back into the governance of city-making.”