Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

labor intensive sector

Safeguarding the Labor-Intensive Sector: Protecting Job Opportunities and People’s Purchasing Power – Trade and Industry Brief, June 2025

In early 2025, Indonesia showed signs of economic slowdown, caused by the erosion of purchasing power, the shrinking middle class and declining sectoral productivity, which is also reflected in the dynamics of industry and employment (LPEM FEB UI, 2025). The manufacturing industry sector, which is the backbone of labor absorption, faces the challenge of premature deindustrialization (decreasing contribution to GDP, contribution to labor absorption […]

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