- In an attempt to boost productivity and economic growth across Indonesia, as well as the country’s overall global competitiveness, the Minister of Manpower recently issued Decree No. 156 of 2021 (“Decree 156/2021”), which requires companies to implement the productivity improvement management system (“System”). The System comprises the following elements: 1) Leadership; 2) Strategic planning; 3) Development and management of human resources; 4) Customer and market focus; 5) Data, information and analysis; 6) Process management; and 7) Business results.
- The types of companies required to implement the System break down as follows: 1) All types of business entities; and 2) All social enterprises and other forms of businesses that employ administrators and other parties through the payment of wages or compensation in other forms.
- The System should be used as a set of guidelines for companies whenever they conduct independent assessments of their productivity, as well as by assessment teams and relevant stakeholders in order to measure the productivity of the relevant companies.
- Decree 156/2021 has been in force since 17 November 2021
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