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

Towards an Inclusive Job Market for Persons with Disabilities in Indonesia

December 21, 2016

In collaboration with the ILO (International Labor Organization), LPEM FEB UI conducted a study on people with disabilities in the Indonesian labor market. This study was motivated by the publication of SAKERNAS (National Employment Statistics) 2016, which was the first to accommodate questions about disability. Even though only one question was included in the latest SAKERNAS questionnaire, it enabled the Research Team to conduct a fairly comprehensive study on the prevalence of disabilities, distribution by region, characteristics of people with disabilities and most importantly the conditions of people with disabilities in the Indonesian labor market. A summary of the study results can be seen at fact sheet. (Download here)

This study is very relevant to carry out considering the issuance of the latest Law on Persons with Disabilities in 2016. In this Law, private companies are obliged to accommodate persons with disabilities as much as 1% of their total workers, and an obligation of 2% for the government sector and BUMN/ BUMD.

On 16 December 2016, the ILO together with several companies launched the Indonesian Business and Disability Network. Currently there are several companies that are active and pioneers in employing people with disabilities. In this forum, each company shares how they recruit, provide facilities, and organize training, to creating a conducive work situation for people with disabilities.

For LPEM FEB UI, this is the third research related to people with disabilities. In the future, hopefully there will be more research related to people with disabilities, especially how they can optimally participate in economic activities in Indonesia.

Indonesian disability

LPEM FEB UI team presentation at the Indonesian Business and Disability Networking Forum, 16 December 2016

The study results show that the labor force participation of disabled people in Indonesia is smaller than that of non-disabled people, and much smaller for people with severe disabilities. The low labor force participation rate of persons with disabilities is accompanied by a high rate inactivity people with disabilities. Many people with disabilities do not work, do not look for work, and also do not do other things such as go to school or be housewives. High level inactivity allegedly because people with disabilities do not have enough courage to enter the workforce (discouraged workers).

Further information regarding people with disabilities in the labor market can be seen at the following link:

http://ilo.org/global/topics/disability-and-work/lang–en/index.htm.

 

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