Better Work and State Regulation in Indonesia – Towards Reinforcement

This research brief summarizes a study of the interactions between Better Work Indonesia and Indonesian state labour market institutions, focused on governance of fixed-term contracts and minimum wage negotiations. To improve working conditions beyond the short-term, transnational regulatory efforts must not only address immediate problems in factories, but also strengthen the state institutions that govern interactions between workers and employers. This study provides evidence to suggest that transnational regulators like Better Work can reinforce the state, dependent on two conditions: local labour mobilization, and support from key stakeholders for engaging the state and factories in order to achieve authoritative interpretations of rules. These findings illuminate the potential, and limits, of transnational initiatives to reinforce state labour regulation.