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

ump 2025

UMP: Maintaining Workers’ Welfare Amidst Inequality – Labor Market Brief December 2024

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 […]

reduce unemployment

Reducing Unemployment, Driving Transformation of Indonesia’s Labor Market – Labor Market Brief November 2024 Edition

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 […]

Educational Mismatch

Portrait of Education and Job Mismatch in Indonesia – Labor Market Brief October 2024 Edition

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 […]

energy transition

Employment Impacts of Energy Transition in Indonesia

Author: Alin Halimatussadiah, Milda Irhamni, Teuku Riefky, Muhammad Nur Ghiffari, and Fachry Abdul Razak Afifi Abstract Indonesia has pledged an ambitious target for decarbonizing its energy sector. This study aims to examine the potential impact of transitioning the power and automotive sectors on employment. Utilizing energy modeling results for three different decarbonization scenarios, this study […]

Phk

Layoffs in Indonesia: Current Conditions and the Role of Government – ​​Labor Market Brief, August 2024

Termination of Employment (PHK) is one of the issues that always attracts attention in Indonesia, especially in the context of economic uncertainty and changes in employment regulations. In 2023, the narrative of mass layoffs will increasingly appear in the news, along with changes in government policy, especially after the implementation of the Job Creation Law (UU Cipta Kerja). This brief will review whether there is indeed an increase […]

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