DO HUMAN CAPACITY DEVELOPMENT AND COMPANY PERFORMANCE AFFECT TAX AVOIDANCE NEW EVIDENCE FROM MANUFACTURING SECTOR COMPANIES IN INDONESIA

Abstract

Indonesia, which ranks fourth globally in terms of the largest labor force, has experienced significant growth in the number of workers since 2020. In 2023, the number of active workers reached 139.85 million out of a total workforce of 147.71 million. Despite the increase in the workforce, the number of workplace accidents remained high, totaling 370,747 cases by the end of that year. This indicates that the fulfillment of occupational health and safety (OHS) rights still requires improvement. According to data from the International Labour Organization (ILO), the rate of workplace accidents in developing countries is much higher than in developed nations, and the global loss due to workplace accidents amounts to 4% of Gross Domestic Product (GDP). This study aims to assess the effectiveness of the OHS system in Indonesia and compare it with best practices in Japan. The research method used is a qualitative approach through literature review and interviews. Secondary data was collected from relevant literature, while primary data was obtained from interviews with related informants. Data analysis was conducted qualitatively, including the process of data collection, reduction, presentation, and conclusion drawing The results of the study show that the OHS regulations in Indonesia, as stipulated in Law Number 1 of 1970, are still not effective in preventing workplace accidents. The recommendations provided include the adoption of Japan's OHS management system to reduce the rate of workplace accidents and improve worker welfare in Indonesia.

Keywords: japan, OHS, regulation