The reciprocal tariff policy imposed by the United States poses a real risk to employment in Indonesia, especially in export-oriented labor-intensive sectors such as textiles and footwear. These two sectors not only contribute a significant portion of manufacturing exports, but also absorb a large number of workers, especially young, low-educated, and casual workers, who are...Read more
Women's participation in the labor market is no longer a side issue, but rather the core of inclusive economic development. Although women's participation has increased slowly over the past decade, the gender gap in Indonesia's labor market remains quite high, with women's participation far below men's on average. The 2023 Sakernas data revealed that Indonesian women face various structural challenges such as limited...Read more
Two issues that are currently emerging and related to the current labor discourse are the #KaburAjaDulu phenomenon and Presidential Instruction (Inpres) Number 1 of 2025 concerning budget efficiency. #KaburAjaDulu, which reflects the trend of labor migration abroad, is getting stronger amidst domestic economic and political uncertainty. Meanwhile, the budget efficiency policy in Inpres 1/2025...Read more
Poverty and inequality are two major issues in economic and social development in Indonesia. The latest data from the Central Statistics Agency (BPS) shows a gradual decline in poverty, but inequality remains a significant challenge. The official BPS report released in January 2025 describes various developments in poverty rates and economic inequality that have occurred throughout...Read more
Provincial Minimum Wage (UMP) is one of the wage policy instruments designed to protect workers in Indonesia, especially workers with basic skills who work at the lowest level. UMP is important in ensuring worker welfare and supporting people's purchasing power, which indirectly affects social stability and economic growth. However, this policy also raises...Read more
Indonesia's Open Unemployment Rate (TPT) in August 2024 decreased to 4,91 percent, reflecting post-pandemic economic recovery supported by job creation and skills training policies. Although labor force participation has increased, the majority of workers are still trapped in the informal sector with low wages and minimal social protection. The distribution of workers in the formal sector has increased to 42,05 percent, while the sectors...Read more
The mismatch between education and work in Indonesia is a significant challenge in the world of work. Based on the ILO classification, mismatch occurs in workers who have higher or lower education than needed (over-educated and under-educated), which can have an impact on work productivity and efficiency. The majority of the workforce is recorded as being in the “well-matched” category, but a large number of workers are still...Read more