Minister of Manpower Introduces Productivity Improvement Management System

In an attempt to boost productivity and economic growth across Indonesia, as well as to increase the country’s overall global competitiveness,[1] the Minister of Manpower (“Minister”) recently issued Decree No. 156 of 2021 (“Decree 156/2021”), which requires companies to implement the new Productivity Improvement Management System (“System”).[2] The System will serve as a set of guidelines for companies, assessment teams and relevant stakeholders whenever they conduct productivity assessments/measurements that address the following areas:[3] 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 outcomes.