Labor Force Participation Rate by Sex and Unemployment in Indonesia, February August 2013 (in%) The open unemployment rate increased

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3 Indonesia GDP Growth Based On Constant 2000 Prices by Industrial Origin, (yoy, in%) Economic growth is driven primarily by the Communications and Transport sectors, Likewise, the primary sector has increased, with the lower growth rate note: Primary sector: Agriculture, Livestock, Forestry and Fisheries; and Mining and Quarrying Industry Sector: Manufacturing Sector; Sector Electricity, Gas and Water; and Construction Sector Services Sector: Sector Trade, Hotels and Restaurants; Transport and Communication Sector; Financial Sector, Real Estate and Business Services; and Services Sector Source: BPS and CEIC (2014)

4 Labor Force Participation Rate by Sex and Unemployment in Indonesia, February August 2013 (in%) The open unemployment rate increased

5 MEMBER OF FPE AS A WORKERS IN MNEs NO Company Name Provinsi Member of FPE KSBSI Target Realization 1 PT. CHEVRON Pacific Indonesia Riau PT. Freeport Mimika Sorong PT. Vale Indonesia Sulawesi Selatan Jambi PT. Petrochina Jawa Timur Papua Barat PT. SCHLUMBERGER Riau PT. Baker Hughes Sumatra Selatan PT. Leighton Sulawesi Utara PT. Energy Equity Epic Makasar PT. Epson Aceh PT. Total Kalimantan Timur PT. Nusa Halmahera Mineral Ternate PT. Bukit Baiduri Energy Kalimantan PT. Tanitohatrun Kalimantan PT. Kitadim Tandun Mayang Kutai Timur PT. Indominco Kalimantan PT. Gunung Bayan Pratama Coal Kutai Barat, Kalimantan Timur PT. Bara Jaya Utama Tj. Lebet Kalimantan Timur PT. Selbavinto Kalimantan Timur PT. Pacific Prima Coal Kalimantan Barat PT. Kaltim Prima Coal Kalimantan Barat PT. Badak NGL Bontang PT. Orica Mining Service Kalimantan Timur PT. Thies Contractor Indonesia Kalimantan Selatan PT. Kideko Jaya Agung Paser, Kalimantan Timur PT. Petronas Kutai Kertanegara, Kalimantan Timur PT. Daya Tangguh Maluku Utara

6 MEMBER OF FPE AS A WORKERS IN MNEs Member Target Realization

7 GOVERNMENT POLICY TO MNEs : 1. The regulation of entry of MNCs. Settings include an assessment of the possible effects of a multinational company in the future for politics and economy of the country concerned. If this assessment indicates the possibility of a very bad or in other words the disadvantages outweigh the benefits, then the presence of multinational companies were rejected. 2. Determination of specific sectors that have been closed to foreign investment or ownership determination, thus giving an opportunity to the local entrepreneurs to participate in activities or make decisions. 3. Indonesia may regulate the activities of multinational corporations by limiting imported materials, product pricing, regulation of credit, ownership and control of their effect on the environment. 4. Indonesia make arrangements about the advantages that may be sent back to the mother country.

8 TENETS OF OPERATIONS PT. CHEVRON Pacific Indonesia (CPI) 1. Always operate within design the environmental limits 2. Always operate in a safe and controller condition 3. Always ensure safety devices are in place and functioning 4. Always follow safe work practices and procedures 5. Always meet or exceed customer requirement 6. Always maintain integrity of dedicated systems. 7. Always comply with all applicable rules and regulations. 8. Always address abnormal conditions 9. Always follow written procedures for high-risk or unusual situations. 10.Always involve the right people in decisions that affect procedures and equipment. DO IT SAFELY OR NOT AT ALL THERE IS ALWAYS TIME TO DO IT RIGHT

9 MAJOR PROBLEMS FACING WORKERS & TRADE UNIONS IN MNES UNION BUSTING NORMATIVE RIGHTS VIOLATIONS WORKERS WORK TREATY VIOLATIONS SHORT TIME OF COLLECTIVE LABOUR AGREEMENT

10 In the face of these problems above, a mechanism undertaken by the management of PT. Chevron is negotiating both bipartite and tripartite, with the Workers Union / Labor Union is in a mediator by the Department of Labor. However, many of the talks only discussed about the problems that are going on, there is no talk of the future that similar problems do not recur.

11 Various violations of the above happens in PT. Chevron which is the largest company and also a subsidiary of Chevron Cooperation are arriving in America. And PT. Chevron that he is always committed to play laws and regulations in force in the Republic of Indonesia to let these things happen in the operational area of PT. Chevron. For that entire FPE-SBSI within the area of action of PT Chevron massive rally on the date last June 18 to and resulted in a collective agreement that was signed at the labor offices prov. Riau

12 Circumstances Trade Unions / Unions in Indonesia since the Age of Reform Order has experienced a huge increase although at some companies still experience violations of workers' Association (Union Busting), which causes a sense of barbets for workers to join a union / worker. It is a challenge for the United Workers / Unions fight for decent work for wages for labor / workers.

13 - The Indicated Union Busting at the Company was Handles by Advocacy - The involving of external parties that possible to support the union work was also be done such as National institution of Human Right, Parliament and series of strikes to against the worsening of contracting system in PT. Chevron Pacific Indonesia. - Caderization and leadership training for member because many union leader has been dismissed. This is to anticipate the indicated union busting in the company, as recently the main leaders dismissed

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