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.