LABOUR MARKET PROFILE

Indonesia
2025
This profile brings insights and central information of the labour
market’s structure, status, and challenges in the country.

www.ulandssekretariatet.dk
 Indonesia Labour Market Profile – 2025

PREFACE
The Danish Trade Union Development Agency implementation and monitoring. National
(DTDA) is the development organisation of the statistical institutions and international
Danish trade union movement. DTDA’s work databanks (e.g., ILOSTAT and NATLEX, World
aligns with the International Labour Bank Open Data, the U.S. Department of State,
Organization’s global Decent Work Agenda and other internationally recognised labour-
(DWA), based on its four pillars: creating related global indexes) are also used as
decent jobs, guaranteeing rights at work, sources of data and information.
extending social protection, and promoting
social dialogue. The overall development The profile is regularly updated to reflect the
objective is to eradicate poverty and support latest developments. Labour Market Profiles for
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agents in their own national and regional Union (KSBSI) and the Confederation of
labour market context, capable of achieving Indonesian Trade Unions (KSPI).
tangible improvements in the national DWA
conditions and the labour-related Sustainable If you have any comments about the profile,
Development Goals (SDGs). please contact Mr. Kasper Andersen
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 Indonesia Labour Market Profile – 2025

EXECUTIVE SUMMARY

Although Indonesia has experienced relatively employment structures. Another imbalance in the
stable politics and solid economic growth, labour market’s dynamics is the weak
which have supported job creation, job quality enforcement mechanisms for the labour dispute
remains a persistent issue. The high prevalence resolution system, which reflect fragile security
of the informal economy, weak wage growth, and trust factors.
and income inequality are factors that exhibit this
characteristic. The economy struggles with slow Indonesia’s labour market faces
growth of high-value sectors, echoing high transformations influenced by technological
structural youth unemployment. Financing advancements, demographic shifts, and
Indonesia’s labour market model is tested by frail evolving working conditions. These changes
government revenue, especially income tax, have several challenges that negatively impact
undermining the social protection system. its development and social equity; for example,
the middle class is shrinking, and labour
At the beginning of the 2020s, controversial productivity levels are low. Although workers are
labour law reforms aimed to relax the labour slowly becoming better educated, they are
market’s legal framework rigidities, causing a trapped in a cycle in low-paying, insecure jobs.
backlash over worker protections. The formal It is worth mentioning that Indonesia’s relatively
labour market has been plagued by high hiring high minimum wage level has reduced its export
costs for employers, which discourage firms from of workers. Besides, it is a popular outsourcing
hiring permanent employees. It has further destination, offering expertise in the business
pushed many companies’ preference for process outsourcing (BPO) industry, as well as the
outsourcing and temporary contracts. This rise of gig work, which is known for its flexibility
situation has caught Indonesian workers in a state and minimal entry requirements, along with
of very high informality, limiting the effectiveness reshuffled job structures.
of business and labour market regulations. The
country is even ranked among the worst countries Indonesia’s social protection system has been
for workers by the Global Rights Index. reshuffled by replacing the approach to
poverty relief with developmental social
Social dialogue through tripartite forums at the assistance programmes. It has delivered
national level has evolved as a springboard significant progress toward universal health
for social and political engagement in coverage, and the population covered by at
Indonesia, whereas bipartite dialogue at the least one social protection benefit has risen
enterprise level remains underdeveloped. For substantially. However, social security
instance, the coverage of collective bargaining programmes demonstrate meagre progress.
agreements stands very low. The trade union Changes in job structures, persistent informality,
movement is struggling to curb the declining trend vulnerability to climate change and disaster risks,
in trade union density, but it is attempting to and changing demographics bring mounting
attract new members from emerging forms of confronts for the social protection system.

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Indonesia Labour Market Profile – 2025

Box 1: Indonesia’s Labour Market Fact Sheet

Workforce Participation rate Unemployment rate

151 million 69% 3.3%

Informal workers share of total

Working conditions Migration
employment
The minimum wage grew steadily, widening
Personal remittances at 1.1%
81% the gap to employees’ nominal average
of GDP
monthly earnings.
Employment by education Vocational training Social protection
Those with intermediate education are on
The proportion of 15–24-year-olds Population covered by at least
the rise, reducing those in less education
enrolled in vocational education grew from one social protection scheme
and basic education are falling.
7.8% in 2010 to 13% in 2023, which is on increased from 28% in 2019 to
Advanced education graduates are
the high end compared to ASEAN countries. 54% in 2021.
slowly climbing.
Trade union density Coverage of collective bargaining Trade union rights violations
Listed among the worst
The falling trade union density trend The number of registered CBAs reached
countries for workers, ranking 5
landed at 12% of employment in 2022, 1.3% of the number of total registered
out of 5 (5 is the worst) on the
representing about 7.5 million workers. companies.
Global Rights Index in 2025.

Box 2: Dynamics that generally influence the labour market

Security: The protection and stability Stability: Weaknesses for the

provided to workers in terms of job consistency and resilience of
availability, income stability, and employment conditions affect
protection from unfair treatment or confidence for both workers and
dismissal. employers.

Trust: Several factors affect the

confidence of workers, employers, and
stakeholders in the system’s fairness
and reliability, such as job security
concerns, workplace safety, and wage
and career

Efficiency: The ability to allocate Flexibility: The capacity to adapt

workers to jobs in a way that quickly and efficiently to changes in
maximizes productivity, minimizes the economy and business demands.
unemployment, and ensures fair
wages.

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Indonesia Labour Market Profile – 2025

COUNTRY MAP

Source: National Online Project.

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 Indonesia Labour Market Profile – 2025

TABLE OF CONTENTS
PREFACE .......................................................................................................................................... I
EXECUTIVE SUMMARY ................................................................................................................... II
COUNTRY MAP .............................................................................................................................IV
ECONOMIC PERFORMANCE .......................................................................................................... 1
Special Economic Zones ......................................................................................................................................... 2
LABOUR LEGISLATION ................................................................................................................... 2
Observations on Labour Legislation .................................................................................................................... 3
Ratified ILO Conventions ....................................................................................................................................... 3
Trade Agreements .................................................................................................................................................. 4
SOCIAL PARTNERS ......................................................................................................................... 4
Government ............................................................................................................................................................. 4
Trade Unions............................................................................................................................................................ 5
Employers’ Organisations ..................................................................................................................................... 6
SOCIAL DIALOGUE......................................................................................................................... 7
Central tripartite institutions ................................................................................................................................. 7
Labour dispute resolution system ......................................................................................................................... 8
TRADE UNION RIGHTS VIOLATIONS ............................................................................................. 9
WORKING CONDITIONS ................................................................................................................ 9
WORKFORCE ................................................................................................................................ 10
Unemployment ..................................................................................................................................................... 11
Migration............................................................................................................................................................... 12
Child Labour ......................................................................................................................................................... 14
Gender .................................................................................................................................................................. 15
Youth ...................................................................................................................................................................... 15
EDUCATION ................................................................................................................................. 16
Vocational Training ............................................................................................................................................. 17
SOCIAL PROTECTION ................................................................................................................... 18
KEY FACTORS THAT CHANGE THE LABOUR MARKET LANDSCAPE ........................................... 20
Impact of the informal economy ....................................................................................................................... 20
Climate change effect and the just transition agenda ................................................................................. 21
Fourth industrial revolution is reshuffling the labour market ....................................................................... 22
APPENDIX: ADDITIONAL DATA................................................................................................... 24
REFERENCES ................................................................................................................................. 29

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 Indonesia Labour Market Profile – 2025

Tables
Table 1: Key indicators for employed gender gaps in Indonesia, 2023 ................................................. 15
Table 2: Proportion of population covered by social protection systems in Indonesia, %, latest data
................................................................................................................................................................................ 19
Table 3: Indonesia’s legal framework on industrial relations ..................................................................... 24
Table 4: Legal reservations in Indonesia concerning the rights to organise, collective bargaining, and
strikes ..................................................................................................................................................................... 24
Table 5: Status of ratified ILO Conventions in Indonesia............................................................................. 25
Table 6: Scores for Labour Rights Index’s legislative performance indicators for Indonesia, 2024 ... 26
Table 7: Number of members in national trade union organisations and their share in total membership
in Indonesia, 2019 .............................................................................................................................................. 26
Table 8: Indonesia’s key workforce data, 2023 ........................................................................................... 28
Table 9: Indonesia – Legal framework scores for women, business and the law, 2024 ....................... 28
Table 10: List of central education laws and policy for Technical and Vocational Education and Training
in Indonesia ........................................................................................................................................................... 28

Figures
Figure 1: Gross domestic product, inflation, and unemployment growth trends in Indonesia, %, 2015-
2026 ......................................................................................................................................................................... 1
Figure 2: Level of national compliance with labour rights among the Philippines and ASEAN countries,
2022 ......................................................................................................................................................................... 4
Figure 3: Trade union density rate in Indonesia, 2016-2022 ....................................................................... 5
Figure 4: Monthly nominal average earnings of employees and minimum wage in Indonesia, rupiah
(IDR) and real growth (%), 2014-2023 .......................................................................................................... 10
Figure 5: Unemployment rate in Indonesia and ASEAN, Total and Youth (15-24 years), %, 2015-2023
................................................................................................................................................................................ 11
Figure 6: Net migration and personal remittance in Indonesia, 2010-2023 .......................................... 13
Figure 7: Internally displaced persons and refugee population in Indonesia, 2010-2023.................. 13
Figure 8: Proportion of youth (aged 15-24 years) not in education, employment or training in Indonesia
and other ASEAN countries, %, 2022/2023 ................................................................................................. 16
Figure 9: Share of employment by education trend in Indonesia, %, 2013-2023 ................................ 17
Figure 10: Proportion of informal employment in total employment in Indonesia, ASEAN and upper-
middle income countries, %, 2023 ................................................................................................................... 20
Figure 11: Individuals using the Internet (% of population) and mobile cellular subscriptions (per 100
people) in Indonesia and East Asia & Pacific (EAS), 2010-2023 .............................................................. 23

Boxes
Box 1: Indonesia's Labour Market Fact Sheet…...……………………………………………………iii
Box 2: Dynamics that generally influence the labour market…………………………………..……...iii
Box 3: Critical factors introduced in the Omnibus Law reform…………………………………………2

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 Indonesia Labour Market Profile – 2025

ECONOMIC PERFORMANCE Consumer price inflation has been controlled

Indonesia is a member of the G20 and the and kept relatively low, except for a burst in
world’s eighth-largest economy in terms of 2022 because of post-pandemic effects and a
gross domestic product based on purchasing wave of high commodity prices triggered by
power parity. A 20-year development plan Russia’s invasion of Ukraine. Over the past few
guides the country, and the new National Long- years, real wage growth has not kept pace
Term Development Plan for 2025-2045 with inflation, resulting in workers’
outlines the vision. diminished purchasing power. This trend has
been particularly evident among the urban
Solid economic growth suddenly dived in middle class, where businesses have
2020 due to the global COVID-19 pandemic, experienced a slowdown due to reduced
costing US$60 billion, and temporarily lost its consumer spending (see more in the Working
status as an upper-middle group. It quickly Conditions section).
regained, though. During the same period,
Indonesia’s poverty rate rose slightly but fell Figure 1: Gross domestic product, inflation, and
unemployment growth trends in Indonesia, %,
again to 9.4% in 2023, down from 24% in
2015-2026
1999. 7
6
Economic growth has generated job creation, 5
which is mirrored by the falling and relatively 4
3
low unemployment rate trend, with some minor
2
ruptures (Figure 1). However, the country is
1
struggling for create quality jobs that are 0
essential for enhancing productivity. This -1
situation links with a significant portion of -2
Indonesia’s workforce lacks the necessary skills -3
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
demanded by modern industries. Also, a Gross domestic product (% change)
substantial portion of the workforce is engaged Inflation, average consumer prices (% change)
Unemployment rate (% of total labour force)
in the informal economy, characterised by low Source: International Monetary Fund; International Labour Organization.
wages, lack of job security, weak skill training,
and absence of social protections. Although Indonesia implements a
progressive personal income tax rate, it
The economic development is driven by the accounts for a relatively small portion of total
service sector, delivering an upsurge in tax revenue. The tax ratio has been below the
employment. This sector supports that labour recommended threshold of 15% for
productivity has been steadily rising, which is developing countries, reflecting that the tax
part of the Fourth Industrial Revolution. This shift system has weaknesses for fiscal sustainability
is driven by automation, digital transformation, to fund key infrastructure programmes,
and artificial intelligence. The industry sector education reforms, and social protection and
slowly lost its economic pace, leaving healthcare improvements. Some main issues are
manufacturing employment on a flat growth low taxpayer compliance, the widespread
level during the last decade. The agricultural informal economy, insufficient enforcement
sector stood economically stable but created mechanisms, limited use of technology, and tax
fewer jobs. culture and trust issues.

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 Indonesia Labour Market Profile – 2025

Special Economic Zones The Indonesian Constitution contains several

Special economic zones (SEZs) play a strategic articles that have direct and indirect
role in stimulating economic growth, implications for labour administration and
industrialisation, and employment. In Indonesia, labour policy formulation, including that every
the introduction of SEZs has been dormant until citizen has the right to employment and a
the government started to make it a priority decent life for humankind. Generally, the right
policy in 2015. The Omnibus Law aims to to freedom of association, the right to collective
attract investment, create new jobs, and make bargaining, and the right to strike are
it easier to do business (see more in the Labour recognised by law but strictly regulated.
Legislation section). It supports boosting SEZs, Legislation prohibits anti-union discrimination
which offer benefits, including generous tax but does not provide adequate means of
incentives, expedited licensing procedures, and protection against it.
land concessions for up to 80 years. They
further operate with flexible labour relations, In recent years, policymakers have been
suppressed freedom of association and struggling to reach a significant reform of the
violated workers’ rights; for instance, labour market. A controversial Job Creation Act
workplace violence and sexual harassment of 2020 (known as the Omnibus Bill) was
from garment factories across the SEZs are expected to boost private investment and
detected.1 enhance the country’s attractiveness as an
investment destination. The act was ruled
Indonesia’s government has established 24 conditionally unconstitutional by the
SEZs nationwide since 2012 and plans to add Constitutional Court in November 2021 for
five more in 2025. SEZs mainly have been in bypassing proper public consultation and other
manufacturing, agriculture, natural resources, procedural requirements, which was counted as
and tourism. However, the five new zones will a victory by the trade union movement.3 Then,
focus on renewable energy, logistics, and via an emergency decree, the minor amended
digital technology sectors. The zones have Omnibus Law on Job Creation was passed in
generated almost 161,000 jobs, involving over March 2023 (see more in Box 3).
400 businesses, with about 687 collective
agreements in 2023.2 It equals approximately Box 3: Critical factors introduced in the
0.2% of employees, which is much lower than Omnibus Law reform
other neighbouring countries like the • The reform allows any business to hire
Philippines, grasping 6.5%. outsourced contract labour without
limitation and sets only vague limits on
the use of fixed-term contracts for
LABOUR LEGISLATION outsourced workers.
Labour legislation is shaping the labour market • The law does not provide adequate
by defining the rights and responsibilities of protection against non-renewal of a
employers and workers. It influences wages, contract for antiunion reasons, and
working conditions, job security, and overall previous legal requirements for written
employment levels. agreements have been dissolved.
• Removing minimum wage protection
Indonesia’s industrial relations are linked for almost all Indonesian workers and
with ten central laws (see Appendix Table 3).

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 Indonesia Labour Market Profile – 2025

exempts micro and small enterprises consultation with the social partners to bring it
from the obligation to engage in into compliance with international standards.6
collective bargaining in a country.4
Reports found that the government did not
Other new labour-related law reforms are effectively enforce provisions of the law
linked with, firstly, Indonesia’s Constitutional protecting freedom of association or
Court issuing Decision No. 168/PUU-XXI/2023 preventing antiunion discrimination. Many
in October 2024, resulting in substantial strikes were unsanctioned, or employers’ delays
modifications to the Manpower Law. Key in negotiating collective labour agreements
changes include rest periods, termination contributed to strike activity and legal
procedures, fixed-term contracts, and measures taken against union members in the
preference for Indonesian workers. This reform event of a failed agreement negotiation.7
balances employer flexibility with employee
protections, fostering a fairer labour market. The widespread informal economy also haunts
Secondly, the Indonesian government enacted the application of labour-related laws in
Law No. 4 of 2024, focusing on the welfare of practice. For instance, it leads employers and
mothers and children during the first 1,000 workers to use loopholes in business and labour
days of a child’s life. This legislation introduces regulations, often due to a lack of awareness
several obligations for employers. Thirdly, or incentives (see more in the Informal Economy
clarifications on foreign worker regulations sub-section).
concerning specific roles and timeframes and
prioritising the local workforce.
Ratified ILO Conventions
International Labour Organization (ILO)
Observations on Labour Legislation conventions enumerate international principles
Concerning the labour legislation applicable at and rights at work. Appendix Table 5 shows
the national level, measurements suggest that that nine out of ten Fundamental Conventions
Indonesia’s overall score on the Labour Rights and two of four Governance Conventions have
Index is 63 out of 100 (100 is the best) in 2024, been ratified, and 9 of 177 Technical
which was slightly below the Southeast Asia Conventions are up-to-date and actively
average (65) (see more in Appendix Table 4 promoted. The latest ratified convention is the
and Table 6). The country has experienced a Maritime Labour Convention in 2017.
slight improvement in the index rank owing to
reform in the law introducing criminal penalties The ILO’s independent supervisory system
for sexual harassment rather than just a body, the Committee of Experts on the
general prohibition. On the other hand, the Application of Conventions and
freedom of association indicator faces very Recommendations (CEACR) raised deep
poor regulations.5 concern of the implementation of the Right to
Organise and Collective Bargaining
As indicated in Box 3 above, several factors of Convention (C098). They underlined significant
the Omnibus Law on Job Creation of 2023 gaps in law and practice in terms of the
have raised concerns about the legislation, and protection against anti-union discrimination,
it has been advised to be reviewed in the scope of collective bargaining permitted
under the law, the promotion of collective

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 Indonesia Labour Market Profile – 2025

bargaining, and interference in free and labour provisions are with European Free Trade
voluntary collective bargaining concerning Association (EFTA) and Chile.9
the international standards.8
A relatively minor economic leverage of
The Sustainable Development Goals indicator Indonesia’s two trade agreements with labour
8.8.2 measures compliance with fundamental provisions has a meagre power scope on
labour rights. Based on ILO textual sources and improving workers’ rights.
national legislation, Indonesia’s scoring has
recently deteriorated. Still, it is better on
margin than many ASEAN countries’ average SOCIAL PARTNERS
(see more details in Figure 2). This trend Social partners are central to promoting the
suggests the country is losing pace with the realisation of core labour rights and social
specific SDG goal. justice for workers by protecting freedom of
association and collective bargaining. These
Figure 2: Level of national compliance with organisations are usually represented as the
labour rights among the Philippines and ASEAN
countries, 2022 government, trade unions, and employers’
10 organisations.
9
8
7
Government
6
The central government is responsible for
5
developing laws, regulations, and procedures
4
3
to assist the Provincial and Local District
2
Governments in implementing labour affairs.
1
0
The Ministry of Manpower and
Transmigration (MoMT) is responsible for the
Note: The value ranges from 0 to 10, with 0 being the best possible score
nation’s labour legislation and regulating
(indicating higher levels of compliance with freedom of association and worker rights and migration. The ministry is
collective bargaining (FACB) rights) and 10 the worst (indicating lower
levels of compliance with FACB rights based on ILO textual sources and
also involved in the labour dispute resolution
national legislation. system and labour inspectorate and as a social
Sources: International Labour Organization, Key Indicators of the Labour
Market (KILM).
partner in the tripartite institutions on industrial
relations (see more in the Social Dialogue). The
labour inspection governance structure is
Trade Agreements decentralised. Local officials from the MoMT
Indonesia has signed 16 trade agreements, are responsible for enforcing regulations on
including six plurilateral regional trade minimum wage and hours of work, as well as
agreements (RTAs) via the Association of health and safety standards. Provincial
Southeast Asian Nations (ASEAN), representing governments are involved in determining
ten member countries – Brunei, Cambodia, provincial minimum wage rates and labour
Indonesia, Laos, Malaysia, Myanmar, the provisions.
Philippines, Singapore, Thailand, and Vietnam.
These RTAs have no labour provisions. The Strategic plans and policy directions guide the
only bilateral trade agreements with some MoMT. In 2025, the ministry is ready to launch

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 Indonesia Labour Market Profile – 2025

the new National Productivity Board, gearing

up to accelerate job creation and boost Although trade unions have shown resilience by
national economic growth. The board is set to reaching out to informal workers such as gig
provide advice and recommendations for workers and advocating for their rights, they
policies to boost national productivity and continue to struggle with falling membership
competitiveness and accelerate programmes to rates. Figure 3 shows the falling trade union
increase the national productivity and density trend in recent years, landing at 12%
competitiveness workforce in the digital era of employment in 2022 and representing
(see more in the Fourth Industrial Revolution sub- about 7.5 million workers.11 This density was
section). at the medium level compared with ASEAN
countries, not to mention it was higher for
Other issues that the ministry focuses on women than men, 15% vs 10% of employment,
currently concerning the Indonesian respectively. In addition, the trade union
workforce are low education levels and a density by aggregated industry sector was
lack of digital skills. They are directing to 16% in services, 9.4% in manufacturing, and
accelerate transformation in the employment 2.7% in agriculture.12
sphere, including training aligned with global
industry demands, such as green jobs, medical Figure 3: Trade union density rate in Indonesia,
technology, and the digital economy.10 In 2016-2022
20%
December 2024, the MoMT also agreed to
18%
collaborate in handling migrant worker 16%
issues by signing a joint memorandum of 14%
understanding (MoU) with the Ministry of 12%
Villages and Development of Disadvantaged 10%
Regions, the Ministry of Migrant Workers 8%
6%
Protection, and the Ministry of Home Affairs,
4%
who supervises local governments.
2%
0%
2016 2017 2018 2019 2020 2021 2022

Trade Unions Note: Data was not available for 2020.

Source: Central Bureau of Statistics; International Labour Organization.
The trade union movement in Indonesia has
experienced significant changes during the This relatively stable trade union density in
last two decades due to shifts in resent years suggests that the Omnibus Law
demographics, technology, and work on Job Creation appears, so far, not
patterns, such as an increase in outsourcing negatively impact the worker’s right to
and casualisation. The restrictive legal organise. Central Indonesian trade unions have
framework linked with unionism mainly focuses recently elaborated upon a position paper
on formal workers. Instead, informal workers regarding the law and a roadmap for labour
are sidelined, leading them more vulnerable to law reforms in Indonesia.
exploitation and lacking collective bargaining
power. These factors have prompted trade There are five national central union
unions to think out of the box in representing confederations, representing three out of four
workers in other new non-traditional organised workers. The government recognises
employment arrangements. these unions in the national tripartite structure.

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 Indonesia Labour Market Profile – 2025

Three other unions are also part of national Employers’ Organisations

tripartite bodies concerning representation Based on the latest Global Risks Report 2024,
from sectorial industries.13 These aggregated identified by Indonesia’s Executive Opinion
eight organisations represent around 84% of Survey on areas in which business leaders are
the total membership rate, playing a role in well-positioned to provide an evaluation, the
social dialogue and the formation of five risks that are the most likely to pose the
government policies. Being affiliated with an biggest threat to the country in the next two
Indonesian confederation, the largest and most years are economic downturn, extreme
active federations are also affiliated with weather events, infectious diseases, energy
international union confederations (see more in supply shortage, and unemployment.16
Appendix Table 7).
The Asosiasi Pengusaha Indonesia
Despite some fragmentation among trade union (APINDO), or the Indonesian Employers
confederations, they have increasingly Association, is Indonesia’s only officially
cooperated to mobilise their members in recognised employer organisation that deals
national demonstrations for labour law reforms, with labour and industrial relations. It has
increasing the minimum wage and social approximately 5,000 members in all parts of
security provision. Indonesia.17 Some estimations suggest that
APINDO represents about 6% of all
Although organised workers are mainly from employers.18 As indicated, several board
the formal sector, some unions are starting to members of APINDO are appointed in central
expand their reach to informal workers. For tripartite institutions (see more in the Central
example, some federations organise informal Tripartite Institutions sub-section). At the 10th
workers such as Grab and GoJek online APINDO’s National Conference in June 2023,
motorcycle taxi drivers, as well as motor vehicle Ms. Shinta W. Kamdani was appointed as the
repair shop workers and motor vehicle Chairman of APINDO 2023 – 2028 period,
showroom workers. In addition, informal becoming the first female chairman of APINDO.
workers in the construction sector are also It is worth mentioning that the association was a
handled by federations. proponent of the Omnibus Job Creation bill
reforming labour law.
Some of the main challenges for Indonesian
trade unions are that employer union-busting Other central employers’ organisations linked
remains extensive; competition among trade with APINDO and have engaged in limited
unions has led to fragmentation and animosity negotiations with trade unions are:19
between some trade unions; the limited
capacity of trade unions is partially the result
• Indonesian Textile Association (Asosiasi
of low awareness and incentives on
Pertekstilan Indonesia (API).
employment laws and unionism among the
workers.14 Reports listed that labour activists • Indonesian Footwear Association
claimed companies orchestrated the formation (Asosiasi Persepatuan Indonesia
of multiple unions, including “yellow” (APRISINDO)).
(employer-controlled) unions, to weaken • The Indonesian Chamber of Commerce
legitimate unions.15 and Industry (KADIN) is where Indonesian
entrepreneurs organise themselves.

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 Indonesia Labour Market Profile – 2025

SOCIAL DIALOGUE is dependent upon its representation of more

than 50% of the company’s workers.
Across countries and irrespective of the level of
development, the role of social dialogue in
Data suggest that the number of registered
contributing to economic and social
CBAs reached 15,637 in March 2023,
development is acknowledged. Indonesia has
equalling a coverage of 1.3% of the number
ratified central ILO conventions involving social
of total registered companies.22 This stance
dialogue (revisit Appendix Table 5). They are
shows that a large proportion of workers do not
further supported by the national legal
have access to the benefits and protections
framework, recognising the right to collective
provided by CBAs. It is mainly because most
bargaining but strictly regulates it. In general,
enterprises are categorised as micro and small,
the provisions of collective bargaining apply to
absorbing about 97% of employment. Instead,
all scales of business.
a large majority is located in the informal
economy where CBAs are unregulated.
Social dialogue takes place on a sectoral
basis and in central tripartite institutions.
Although the Omnibus Law on Job Creation
They have further been established to deal with
attempts to bring micro and small enterprises
industrial relations issues in province, region,
into the formal economy, the government
and district stages. For example, there are
promotes a more flexible collective agreements
tripartite institutions for employment, minimum
model at the enterprise levels. Reports
wages and occupational safety and health at
concluded that although several trade unions
the regional level. The organisational structure
have been forced to accept a reduction in CBA
of tripartite institutions is flexible and
provisions because of the law, others upheld
established by their specific characteristics and
clauses and provisions, and some even
regional requirements. The number of
introduced new pay scale clauses or provisions
participants in tripartite institutions in provinces
for transport and meal allowances.23
also depends on the local needs.20
Based on the trade unions movement’s view,
Despite the legal provisions and a wide range
this law significantly damages the existing
of initiatives for tripartite and bipartite
wage-setting system by removing minimum
dialogue at all levels, social dialogue remains
wage protection for almost all Indonesian
challenged in practice in Indonesia. Some
workers. It could undermine the tripartite wage
primary contests are due to a lack of trust
negotiations that determine minimum wages as
among social partners, a lack of awareness or
well as the capacity of the unions to negotiate
incentives among workers and employers, or
wages at the enterprise level.
political will by national and local government
actors. Generally, weak institutional
mechanisms such as dispute resolution and
labour law enforcement bodies also reduce Central tripartite institutions
social dialogue impacts.21 The leading active tripartite social dialogue
institutions that play a central role in shaping
In Indonesia, the application of Collective labour market policies and industrial relations
Bargaining Agreements (CBAs) has been tested are summarised below:
by rigid regulations; for example, stymying a
trade union’s engagement in CBA negotiations

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 Indonesia Labour Market Profile – 2025

Some of the leading establishments are the are handled can significantly impact the
tripartite cooperation institutions that are functionality and stability of the labour market.
concentrated into:
In Indonesia, industrial relations disputes are
• The National Tripartite Cooperation regulated by the Settlement of Industrial
Institution (NTCI) and the Provincial, Relations Disputes Law of 2004. Several
District/City Tripartite Cooperation methods of resolving industrial relations
Institutes. disputes are possible before filing a lawsuit
• Sector-based National Tripartite with the specialised Industrial Relations
Cooperation Institute and sector-based Courts (IRCs) via bipartite negotiation and
Provincial, District/City Tripartite conciliation. If it fails, it could go through a
Cooperation Institutes. tripartite settlement, which is choosing between
mediation, conciliation, or arbitration. This
Representatives from the government, tripartite settlement system has faced
entrepreneurs’ organizations, and trade/ weaknesses and inefficiencies, leaving many
labour unions shall be members of tripartite workers on their own to battle it out with their
cooperation institutes. employers (see more in the Working Conditions
section).
Other important tripartite institutions are:
The IRC system has been haunted by too
• The National Wage Council (NWC) often prioritising the interests of business
advises on wage policies and reviews the owners, and the quality of the decision-
governors’ proposals on their respective making process remains low. Antiunion
regional minimum wages. discrimination cases have moved excessively
slowly through the system, and bribery and
• The National Occupational Safety and
judicial corruption in worker disputes continue
Health Council (NOSHC) advises on
to prevail. While dismissed workers sometimes
occupational safety and health.
received severance pay or other compensation,
• The National Productivity Council (NPC) is
they were rarely reinstated.
responsible for consulting about
productivity improvements. Generally, the legal industrial relations
• The National Institute for Training dispute system encounters weak enforcement
Coordination (NVTC) advises on training mechanisms, a widespread informal economy,
policies and has committees dealing with limited union power, and vulnerable groups like
accreditation, training institutions, skills migrant workers, women, and those in
training standards and apprenticeship precarious employment. As indicated, reports
programmes. listed bribery and judicial corruption in
workers’ disputes occurred, resulting in
unfavourable results for workers. While
Labour dispute resolution system workers sometimes received severance pay or
The labour dispute resolution system is other compensation, they were rarely
designed to address conflicts between workers reinstated.24
and employers, ensuring fair treatment and the
enforcement of labour rights. The way disputes

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 Indonesia Labour Market Profile – 2025

TRADE UNION RIGHTS VIOLATIONS exploitation of children), human trafficking and

forced labour.
Trade union rights violations undermine both
worker protection and labour market stability.
They can lead to increased industrial action,
low worker morale, and reduced business WORKING CONDITIONS
productivity. Additionally, they can also Working conditions directly affect workers’
contribute to broader economic inequality, well-being, productivity, and job satisfaction.
informal employment, and social unrest. The state of these conditions also has broader
implications for the labour market, influencing
Indonesia is among the worst countries for economic performance, employment patterns,
workers, ranked 5 out of 5 (5 is the worst) on and social stability.
the Global Rights Index in 2025. This stance
represents “no guarantee of rights”: While the The Omnibus Law introduces a new formula
legislation may spell out certain rights, workers for determining the minimum wage at the
have effectively no access to these rights and provincial and city levels. The formula
are therefore exposed to autocratic regimes combines the Consumer Price Index (CPI) and
and unfair labour practices.25 Gross Domestic Product (GDP) growth, shifting
the focus away from the previous practice of
Several common practices undermine setting minimum wages based on inflation and
freedom of association in Indonesia. Reports worker needs. Critics argue that this could lead
found that antiunion intimidation frequently to lower minimum wages, especially in regions
took the form of termination, transfer, or filing where economic growth is sluggish, while
of unjustified criminal charges. Unions allege inflation continues to rise.
employers commonly reassigned labour
leaders deem to be problematic. Labour Figure 4 below shows that the minimum wage
activists claimed companies orchestrate the grew steadily, widening the gap to
formation of multiple unions, including “yellow” employees’ nominal average monthly
(employer-controlled) unions, to weaken earnings. One of the reasons is an impact of
legitimate unions. Some employers threaten the mentioned Omnibus Law that led micro and
employees who contacted union organizers. small enterprises exempted from paying the
Companies often sued union leaders for losses regional minimum wage. Instead, they must
suffered in strikes.26 compensate their workers at least 50% of the
average public consumption or 25% above the
Crises heighten the risk of all forms of provincial poverty line. It is also worth
modern slavery, and climate crisis has mentioning that most workers operate in the
accelerated these circumstances. At least 1.8 informal economy, which is known for sidelining
million people are living in modern slavery in wage regulations, often due to a lack of
Indonesia, with a prevalence of 6.7 per 1,000 awareness or incentives. If both the inflation in
of the population and ranking as number 10 out consumer prices and economic growth are
of 27 Asia and the Pacific countries on the deducted from the nominal earnings, it turns out
Global Slavery Index (1 is the worst score) in to be a falling trend in recent years. This
2023.27 This index measures modern slavery, situation causes many workers to experience
i.e., slavery-like practices (such as debt, their incomes hollowing out, negatively
bondage, forced marriage and sale or affecting their living conditions.

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 Indonesia Labour Market Profile – 2025

Figure 4: Monthly nominal average earnings of WORKFORCE

employees and minimum wage in Indonesia,
Indonesia's workforce reached 152.1 million
rupiah (IDR) and real growth (%), 2014-2023
6000000 8.8% 10%
individuals in 2024, positioning it as the
largest in Southeast Asia by land area and
5000000
5.9% 5.9%
population. The labour force participation
5%
rate, which measures the active portion of the
4000000 0.4% working-age population, stood at 69% in 2023
0% (see also Appendix Table 8).
3000000

-4.2% -5% Indonesia's youthful population is impacting

-4.8%
2000000 -5.1%
workforce trends; for instance, with a median
-8.2% age of around 30, the country is entering a
-10%
1000000 -9.9% 'demographic bonus' era, where the
-12.4% productive population (15-64 years) exceeds
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
-15%
the non-productive population, offering
Real average hourly earnings of employees growth (%) (right) potential for economic growth. Major cities like
Average montly earnings of employees (left) Jakarta, Surabaya, and Bandung are
Nominal minimum wage (left)
employment hubs, attracting a significant share
Note: Growth in real average hourly earnings of employees is based on
the average hourly earnings of employees deducted by aggregated of the workforce due to diverse job
inflation and GDP growth. opportunities in services, finance, and
Source: ILOSTAT, Trading Economics/Ministry of Manpower and
Transmigration; own calculation on real minimum wage.
technology.

The low coverage of Collective Bargaining Employment in the agricultural sector fell
Agreements (CBAs) further brings most during the last decade, while experienced an
Indonesian income earners’ working upsurge in the service sector. The industry
conditions in limbo. Overall, reforms related sector brought a meagre rise; manufacturing
to fixed-term contracts, outsourcing of work employment share of total employment has
and labour, and the termination of employment been on a flat growth during the last decade.
threaten an ever-greater usage of precarious
jobs in the country.28 Indonesia’s labour market faces several hurdles
that impact its economic development and
Another issue that challenges the labour market social equity. Key issues include that the
development is that Indonesia’s labour country continues to be stuck with low labour
inspection system faces limited coverage, productivity and a mismatch between the
ineffective central-regional coordination, and skills possessed by workers and those
minimal budget allocation. With an actual demanded by employers. This disparity
ratio of labour inspectors to employees of hurdles economic development and the
1:44,000 (or 1:95,000 of total employment) in country’s aspirations to transition to a high-
2023, it is far below the ILO standard of income economy. Addressing these encounters
1:20,000, thus standing suboptimal. requires substantial investments in education
and vocational training to align workforce
capabilities with industry needs.

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 Indonesia Labour Market Profile – 2025

Despite overall economic growth, income unemployment on the labour market can be
inequality persists, with a significant far-reaching, affecting economic growth, social
disparity between urban and rural stability, workforce dynamics, and even future
populations. The middle class has shrunk from job prospects.
22% in 2019 to 17% in 2024, affecting
domestic consumption and economic stability. Figure 5: Unemployment rate in Indonesia and
Other data show that labour income share as a ASEAN, Total and Youth (15-24 years), %, 2015-
per cent of GDP is slowly falling, challenging 2023
18
the evolution of the middle class.29 These trends
16
pose challenges for domestic consumption, as a
14
robust middle-class is often a driver of
12
sustainable economic growth.
10
8
Labour unrest has been a recurring issue,
6
often stemming from attempts by employers to
4
circumvent Indonesia’s rigid labour laws by 2
classifying employees as contract workers. This 0
practice undermines job security and worker 2015 2016 2017 2018 2019 2020 2021 2022 2023
Indonesia - Total Indonesia - Youth
welfare, leading to increased labour militancy ASEAN - Total ASEAN - Youth
and strikes. Ensuring compliance with labour Source: International Labour Organization, LFS - Labour Force Survey.
regulations and protecting workers' rights
remain critical challenges. Unemployment is predominantly an urban
phenomenon, affecting young people and
Pervasive corruption and bureaucratic those with higher levels of education.
inefficiencies hinder effective labour market Compared with the broader worldview, the
governance in Indonesia. These issues affect relatively low unemployment rate suggests that
various sectors, leading to economic volatility Indonesia’s economy is generating jobs, which is
and inequality. Efforts to combat corruption supported by a limited export of workers (see
and improve public administration are essential more in the Migration sub-section). Instead, this
to create a more equitable and efficient labour relatively low unemployment rate
market. underestimates the number of individuals
engaged in casual or informal activities,
where many work a few hours per week as
Unemployment a means of survival. In addition, the
Unemployment could disrupt the labour market intermittent nature of subsistence farming, which
by affecting wages, matching workers to jobs, is occupied only during planting and harvesting,
and overall economic productivity. Indonesia’s contributes to what is known as ‘disguised’
unemployment rate is slightly higher than the unemployment. Additionally, unemployment is a
average of the other ASEAN countries. statistical component of the employed group,
However, it demonstrates a slowly falling trend excluding individuals outside the workforce.
at the beginning of the 2020s. The youth Approximately 54% of the working-age
unemployment rate is significantly higher than population in Indonesia is estimated to be
the ASEAN average but curbs the gap faster ‘economically inactive’, a term that masks a
(see Figure 5). The impact of high youth massive potential for unemployment. These

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 Indonesia Labour Market Profile – 2025

aspects could give a more accurate picture of implement migrant worker protection laws and
the real unemployment rate (see more in the provide gender-responsive counselling services
Youth sub-section). for migrant workers departing abroad or
returning.32 In November 2024, trade unions
In 2020, Indonesia established an participated in a joint effort to promote the
unemployment insurance fund in a crisis. This implementation of gender responsiveness fair
fund should be financed via general recruitment, responsible business conduct and
government tax revenue, employer code of conduct for private placement agencies
contributions, and the National Social Security to better protect Indonesia migrant workers.33
System for Employment (Badan Penyelenggara
Jaminan Sosial Ketenagakerjaan, BPJS-TK). The Many Indonesians move to improve their job
predetermined financial arrangement created opportunities, follow their family members,
a budget constraint, though, resulting in limiting marry, educate, or respond to shocks due to
the coverage of vulnerable workers and conflicts and climate issues. Young people
limiting the payment of unemployment are especially attracted to move from rural
benefits.30 Data show that the number of areas to urban zones, driven by the
unemployed Indonesian workers receiving manufacturing and construction sectors.
unemployment benefits was 0% since 2019 Indonesia's population lived in urban areas and
(see more in the Social Protection section). cities steadily grew, reaching 59% in 2023.
There is also rural-to-rural movement,
especially for seasonal agricultural work and
Migration mining.
Migration has a complex and multifaceted
impact on the labour market. While it can fill Indonesian labour migration to other countries
gaps in the workforce, contribute to economic – both voluntary and forced – has a long
growth, and provide demographic benefits, it history. About six to nine million Indonesian
can also create challenges such as wage diasporas live abroad, primarily in Malaysia,
pressures and job displacement, particularly Saudi Arabia, Japan, and the Republic of
for lower-skilled workers. Korea.34 An equal number of Indonesians are
believed to be working overseas illegally.
Indonesia’s legal framework for migration is Some of the reasons are that only around one
guided by the Immigration Law of 2011 and in ten Indonesians is interested in migrating
the Protection of Indonesian Migrant Workers abroad due to the requirements for
Law of 2017. It includes well-developed areas documented migration. In addition, gender
focusing on social security, health care, shelters differences in the propensity to become
for victims of trafficking and education for undocumented migrants may be driven by time
migrants.31 constraints due to the higher care burden
women face.35 Women and low-skilled
The trade union movement participates in migrants are overrepresented in temporary
agenda-setting and the implementation of labour migration flows to non-OECD economies.
migration policy only on an ad hoc basis. Most Indonesian overseas migrants work as
Recently, the Konfederasi Serikat Buruh Seluruh domestic workers or caregivers in their
Indonesia (KSBSI) collaborates with civil society destination country.36
organisations to help local governments

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 Indonesia Labour Market Profile – 2025

Figure 6 shows that although more have left (IDPs) from conflict and violence during the last
than arrived in Indonesia during the last decade, grasped 55,000 in 2023. It has been
decade, the net migration has been stable, worse among IDPs from disasters, with an
except for a rupture in 2020 and 2021 due to aggregated 8.1 million persons from 2008 to
the impact of the Covid-19 pandemic. 2023. These latter disaster events are mainly
Considering the country’s high population, the related to floods, earthquakes, volcanic
net migration flow does not appear to be a activity, and storms, complicating many
critical structural challenge. This stance is workers’ ability to make a living and facing job
supported by the relatively high minimum insecurity, lower income, poor working
wages compared with other neighbouring conditions, and increased poverty (see more in
countries. Also, personal remittance is not a the Just Transition agenda section).38
central part of Indonesia’s economy.
Figure 7: Internally displaced persons and
Figure 6: Net migration and personal remittance refugee population in Indonesia, 2010-2023
in Indonesia, 2010-2023 1000000 12000

0 2 900000
10000
1.8 800000
-10000
1.6 700000
8000
-20000 1.4 600000

1.2 500000 6000

-30000
400000
1
4000
-40000 300000
0.8
200000
-50000 0.6 2000
100000
0.4
-60000 0 0
0.2
-70000 0 Internally displaced persons (left)
Refugee population (right)
Net migration (persons) (left) Note: Internally displaced persons include both from conflict/violence and
Personal remittances, received (% of GDP) (right) disasters.
Source: The World Bank, World Development Indicators. Source: The World Bank, World Development Indicators.

In 2025, Indonesia’s government attempts to Like in other neighbouring countries, Indonesian

send almost double the number of workers IDPs face numerous challenges in the
abroad, a move expected to boost economic integration and reintegration into the labour
growth via foreign exchange earnings. Key market. They often struggle to access
strategies include enhancing workers’ language essential services such as healthcare,
skills and prioritising English starting from education, clean water, and sanitation
elementary education. It could trigger a rising facilities. IDPs also have difficulties in finding
brain drain as skilled workers move abroad, suitable housing and shelter after being
such as intellectuals, scientists, and scholars.37 displaced; they are often placed in temporary
settlements in overcrowded conditions and
Internally displaced persons (IDPs) can impact without proper infrastructure and basic
the labour market in various ways, such as strain amenities.
local job markets and resources. Figure 7 below
visualises Indonesia has experienced an Indonesia has at least 8,000 refugees and
upsurge in internally displaced persons asylum seekers (revisit Figure 7). Asylum

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 Indonesia Labour Market Profile – 2025

seekers and refugees have difficulties staying triggered an increase in the number of child
in the country. These vulnerable groups are workers in 2020. Although the numbers have
not permitted to work and receive no social decreased since then, they remain higher than
benefits from Indonesia’s government. They the pre-pandemic level.39 This information hints
can remain in the country while registration that the National Action Plan on Child Labour
documents are processed by the Office of the Eradication and Roadmap for the Acceleration
United Nations High Commissioner for Refugees of Making Indonesia Free of Child Labour,
(UNHCR). aiming to eradicate child labour by 2022, has
not fully reached the goal.

Child Labour In Indonesia, child labour is more prevalent

Child labour has several adverse effects on in rural areas. These child workers in the
the labour market. For instance, it provides a agricultural sector face higher risks of exposure
source of cheap labour, allowing employers to to harmful chemicals used in pesticides and
pay lower wages. This is often connected with fertilizers, causing raised concerns about their
a lack of decent wages and job opportunities, safety. Many of them are involved in producing
forcing families to rely on child labour for palm oil and tobacco, with Indonesia being one
survival. These child labourers grow into of the world’s largest producers of these two
unskilled adults and are more likely to remain products.
in low-paying, unstable jobs.
Some central factors stuck with persistent
In Indonesia, around 25% of the population is child labour in Indonesia are poverty, the
0-14 years old and this segment’s growth has widespread informal economy, social norms
lost pace. The government has ratified ILO’s and heritage, and education. Many working
two child labour-related conventions (C138 children are mostly unpaid family workers;
and C182; see Appendix Table 5). The often, they are pushed to stop schooling and
minimum age of employment is 15 years old, focus on supporting the family’s income. As
and national laws prohibit several conditions previously mentioned, almost one out of 10 of
that are classified as the worst forms of child the Indonesian population still lives below the
labour. Several ministries, including the Ministry poverty line. The lack of awareness about the
of Manpower and Transmigration, monitor child effects of child labour and some companies not
labour. complying with the laws against child labour
further exacerbate the issue.
The latest available data from the Indonesia
Child Labour Survey in 2009 registered that Indonesia’s trade union movement has
there were more than 3 million children (aged supported in reducing child labour by
5-17) in child labour. The country has advocating for stronger laws and activities,
demonstrated significant progress towards which resulted in some good practices in
achieving universal primary education, contributing to the elimination of the worst forms
which is projected to a reduction in child of child labour.
labour. Other estimates suggest that child
workers represented around 1.0 million people
in 2023, equalling 0.7% of total employment.
The impact of the Covid-19 pandemic

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 Indonesia Labour Market Profile – 2025

Gender The Covid-19 pandemic-induced economic

Gender plays a central role in shaping labour shock triggered some remarkable shifts at the
market dynamics, affecting employment beginning of the 2020s. For example, the
opportunities, wages, job security, and impact considerably narrowed the gender gap
economic growth. Indonesia has demonstrated in employment participation. Employment fell
the political will to promote gender equality for men while it increased among women;
and is committed to central international they mainly turned to informal jobs in the
gender-related conventions and protocols. services and agriculture sectors to support
Generally, the country’s laws and regulations their families during the pandemic. This
around the life cycle of a working woman score circumstance halted and reversed the country’s
60 out of 100 (100 is best) in 2024, slightly momentum in formalising its labour market.
higher than the regional average across East Another factor is that employees’ total average
Asia and the Pacific at 58. They still encounter hourly earnings closely grabbed an equality in
a significantly lower ranking on the marriage 2021, mainly from a significant upsurge for
and entrepreneurship indicators (see more women. However, women’s average hourly
details in Appendix Table 9).40 At the policy earnings dropped afterwards, reverting to its
level, the country has linked its National usual gap trend above ten percentage points
Gender Mainstreaming Policy with the afterwards, including the latest 13% in 2023,
National Long-term Development Plan system, benefitting men.
including the updating 2025-2045 version.
Additionally, measures have been taken to Although Indonesian women remain
implement the national zero-tolerance policy underrepresented in the highest positions in
for gender-based violence. government and industry, where the most
important policies are decided, they have
Table 1 below shows that Indonesian men gained some leverage. For instance, the
have a significantly higher employment-to- proportion of those in managerial positions has
population ratio than women. Although more risen significantly during the last decade,
women are slowly increasing their workforce reaching 33% in 2023. This has pointedly
participation rate, three out of five are curbed the gap with the ASEAN average, now
concentrated among the self-employed, linked below by 3 percentage points.
to socio-cultural factors and ‘domestic burden’.
This situation makes women more likely than On a broader view, the global Gender
men to work part-time or in informal Inequality Index (GII) ranks Indonesia 109 out
employment in low-productivity sectors. of 166 countries (1 is best) in 2022 due to the
relatively high maternal mortality ratio and the
Table 1: Key indicators for employed gender gender gap in the labour force participation
gaps in Indonesia, 2023 rate.
Men Women
Employment-to-population ratio 79% 52%
Employment share 61% 39% Youth
Unemployment rate 3.5% 3.1%
Youth participation in the labour market
Employees rate 51% 39%
Self-employed rate 49% 61%
plays a central role in shaping employment
Employers rate 4.4% 1.8% trends, productivity, and economic growth.
Source: International Labour Organization, ILOSTAT. Indonesia’s population structure has a ‘youth

Page 15
 Indonesia Labour Market Profile – 2025

bulge’, a term used to describe the increase in insurance. These groups are challenged by
the youthful population. In 2023, the inadequate training and career opportunities,
youth (aged 15-24 years) accounted for a and they usually earn less than the minimum
substantial portion of the working-age wage compared to the non-youth groups.
population, reaching 45 million or 21% of the Insufficient job creation in the formal sector and
total working-age population, facing a slowly cultural aspects discourage many Indonesian
dwindling trend.41 youths, who become economically inactive in
the labour market.
The Youth Law of 2009 sets Indonesia’s legal
framework for youth development. This The not-in-education, employment, or training
initiative is supported by youth strategies (NEET rate) better indicates the extent of
interlinked with the National Long-Term barriers facing young people in the labour
Development Plan. market than the unemployment rate does.
Indonesia’s NEET rate was 21% in 2023,
The country is getting close to ranking at the with meagre drops and placed among the
high-medium level on the Global Youth highest in ASEAN countries (see more in
Development Index, 77 out of 183 countries in Figure 8). Indonesia’s NEET rate is higher for
2023.42 Although some relatively well- women than men, 26% vs. 17% respectively.
functioning factors like inclusion, peace, and Young people from lower-income families are
civic participation indicators, they still struggle usually more present in the NEET rate.
in terms of wellbeing and education.
Figure 8: Proportion of youth (aged 15-24 years)
Based on national survey data, around an not in education, employment or training in
additional 12 million new Indonesian young Indonesia and other ASEAN countries, %,
workers entered the labour market during the 2022/2023
25
last decade. The youth employment-to-
population ratio has been stable at around
20
40%.43 The youth unemployment rate has
been relatively high, indicating that the
15
economy is not generating sufficient jobs
(revisit Figure 5). A central challenge for many
10
young Indonesian people is their difficulties
with the school-to-work transition. Once they
5
succeed in entering the labour market, they
have problems finding quality formal jobs. It
0
often leads to a mismatch between job
requirements and graduates’ qualifications. It is
worth mentioning that the relatively low labour * Data from 2020.
Source: International Labour Organization, ILOSTAT.
exports have also fuelled the comparatively
high youth unemployment.
EDUCATION
Active youth workers are often among
The connection between education and labour
informal workers or short-term labour
in Indonesia is essential for economic
contracting, sidelining their access to social
development. The Indonesian education

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 Indonesia Labour Market Profile – 2025

system is immense and diverse. With more On the positive side, Indonesia’s government
than 52 million students, three million teachers, revived non-formal education and established
and 400 thousand schools, it is the fourth learning houses through community-government
largest bulge in the world.44 The education cooperation.
sector is covered by a comprehensive legal
framework. Although the country has promoted Generally, government spending on
reforms in this sector, including the recent education levels in Indonesia has been low
emancipated learning reform that significantly compared with the regional average. Even
expanded access to education, levels of recent budgetary reallocations have led to cuts
learning remained low. For instance, in higher education funding, sparking protests
Programme for International Student and concerns about the future of academic
Assessment (PISA) data suggest that more than quality and access.
three in four 15-year-olds did not meet
minimum proficiency levels in mathematics and Indonesia's education system faces complex
reading.45 challenges that impact the quality of
education and its alignment with labour
Some shifts in employment by education are market needs. Although the 12-year
that those with intermediate education are on compulsory education rule is in place, uneven
the rise, while those in less education and infrastructure and suboptimal resource
basic education are falling. Advanced distribution often hinder the effectiveness of
education graduates are slowly climbing (see inclusive education. Access to qualified
more in Figure 9). This development shows that teachers, adequate learning facilities, and
employment is becoming better educated. appropriate educational materials remains
limited in remote areas. Also, many regions still
Figure 9: Share of employment by education lack access to reliable internet and digital
trend in Indonesia, %, 2013-2023 devices, hindering the effectiveness of
50%
educational technologies and online learning
45%
platforms.
40%

35%
Indonesian trade unions are integral to the
30%
education sector. They engage in policy
25%
advocacy, address workforce challenges, and
20%

15%
influence labour-related aspects of education.
10%
Their involvement is decisive for the continuous
5%
improvement and responsiveness of the
0%
country’s education system to educators' and
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
students' needs.
Less than basic Basic Intermediate Advanced
Source: Indonesia National Labour Force Survey; International Labour
Organization, ILOSTAT.
Vocational Training
Apart from these improvements, a majority is Indonesia’s Technical and Vocational Education
struggling with skill development due to and Training (TVET) system is covered by a
insufficient training, affecting productivity and legal and policy framework. This system is
increasing school dropout rates in recent years. divided into formal, non-formal, and informal

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 Indonesia Labour Market Profile – 2025

schemes involving several ministries and private training providers and small and medium
actors. The country is struggling with the enterprises seeking to invest in workforce
fragmentation of TVET governance, development.
complicating a national non-compulsory
system of certification and qualification. It is Some of the main challenges for Indonesia’s
worth mentioning that Indonesia’s trade union TVET sector concern being heavily supply-
movement has entered a more active role in driven. It has stymied innovation at TVET
skills and employment development via institutes from redesigning their programmes to
advocacy for skills development policies, meet industry and firms’ needs, resulting in skills
participation in tripartite institutions (National mismatches and a lack of demanded skills in the
Training Board and other industrial relations labour market.49
forums), and implementation of training
programmes.
SOCIAL PROTECTION
Central TVET indicators deliver improvements in Social protection and the labour market are
Indonesia. For example, the proportion of 15– closely connected, as social protection
24-year-olds enrolled in vocational programmes play a central role in enhancing
education grew from 7.8% in 2010 to 13% the well-being of workers, promoting job
in 2023, which is on the high end compared security, and reducing poverty. The high
to ASEAN countries. It hints that participating uncertainty of social and economic impacts
in education and training designed specifically triggered by climate and environmental
to lead to a job is in progress.46 Studies found change and Fourth Industrial Revolution (4IR)
that individuals with vocational education have disruptions increases pressure on the social
a statistically significant lower probability of protection system, leading to a rising need for
being unemployed contrasted to those deeper and broader coverage, especially
individuals with non-vocational education.47 among the most vulnerable people.

Another central factor is that Indonesian In Indonesia, social protection has proven to be
firms offering formal training are low and a central component of economic development
growing slowly, representing 8.4% in 2023, and progress towards a more cohesive society.
or 24 percentage points lower than the The national constitution recognises the right to
Eastern Asia and the Pacific average, at social security for all and the state’s
32%.48 Formal firms continue to be a small responsibility in developing social security.
group compared to the widespread informal Public spending on social protection reached
micro- and small enterprises, not to mention 1.5% of GDP in 2022, which was considerably
enterprise-based training is concentrated in lower than the Asia-Pacific average of 4.9%.50
more industrialised regions. One primary
reason workers do not attend training is the The country’s decentralised governance
unavailability of appropriate training. The structure poses challenges in uniformly
corporate training market faces confusion delivering social protection services across
about TVET governance that affects quality diverse regions. Coordinating policies and
standardisation, regulatory compliance issues, ensuring consistent implementation require
and limited access to funding for training robust mechanisms to address regional
programmes. These barriers impact smaller disparities.

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 Indonesia Labour Market Profile – 2025

The social protection system has been Kesehatan) for healthcare and the Workers
reshuffled by replacing the approach to Social Security (BPJS Ketenagakerjaan) for
poverty relief with developmental social socio-economic protection.
assistance programmes. It has changed the
administrative and legislative architecture that The system for non-contributory social
reformed the social insurance system, protection programmes was boosted in recent
expanding coverage and improving benefits.51 years: Based on the latest data available, the
This evolution has delivered significant progress coverage of social safety net programmes
towards universal health coverage, and the grasped 44% of the population in 2021, with
population covered by at least one social some leakage among the richest quintiles.53
protection benefit rose significantly. Another trend is that the social insurance
programmes have delivered meagre progress
Indonesian formal workers are still more in coverage during the last decade, landing at
protected in terms of social protection than 10% of the population in 2021, concentrated
informal workers. The latter group is not among the richest quintiles.
eligible for social assistance nor is able or
unwilling to register for social insurance. A A remarkable upsurge of the Indonesian
central issue for the relatively low participation population covered by at least one social
of informal workers in social security is mainly protection scheme from 28% in 2019 to 54%
due to their income irregularities and different in 2021, even superseded the regional
needs over time, putting them at risk of not average of 45% (see other social protection
having a secure retirement. A growing indicators’ coverage in Table 2).
preference for gig work with diluted
contractual positions also brings them at risk of Table 2: Proportion of population covered by
lack of adequate retirement plans.52 social protection systems in Indonesia, %, latest
data
Indicator Value
Indonesia’s trade union movement plays a
Population covered by at least one social
central role in advocating for reforms in the protection benefit
54%
social protection system to ensure better Persons above retirement age receiving
31%
security for workers. As economic conditions a pension
evolve and informal employment remains high, Persons with severe disabilities collecting
2.5%
unions push for more inclusive, fair, and disability social protection benefits
Unemployed receiving unemployment
sustainable social protection policies. For 0%
benefits
example, they advocate for inclusion of Mothers with newborns receiving
informal workers in national employment 29%
maternity benefits
insurance schemes. Employed covered in the event of work
26%
injury
All employees in Indonesia, including Poor persons covered by social
100%
protection systems
expatriates and their families, must
Children/households receiving
mandatorily participate in the National Social 44%
child/family cash benefits
Security System (Sistem Jaminan Sosial Vulnerable persons covered by social
50%
Nasional – SJSN). Social security programmes assistance
Source: International Labour Organisation, Key Indicators of the Labour
are run by two organisations – the Social Market (KILM).
Security Administrator for Health (BPJS

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 Indonesia Labour Market Profile – 2025

Indonesia is an ageing society, with a informal economy, digital transformation, and

minimum pension covered by a public climate change and green jobs.
scheme; there are no mandatory
contributions to pension income. The pension
system experienced a substantial hike in Impact of the informal economy
coverage from 15% in 2019 to 31% of persons The informal economy plays a dual role in
above retirement age receiving a pension in labour markets – providing employment
2021. Still, at least two out of three (69%) of opportunities and creating challenges related
older Indonesian people are left with no to wages, worker protections, and economic
pension. Those receiving a pension receive a stability.
low allowance, even one of the weakest in the
region, currently landing the lowest minimum The informal economy is widespread in
pension after 15 years of contribution is IDR Indonesia. Many employers and workers
363,300 (US$23) per month.54 Another trend is sideline labour and business regulations due to
that the social insurance programmes have a lack of awareness or incentives. Informal
achieved meagre progress in coverage during workers – often visualised by street vendors,
the last decade, landing at 10% of the angkot drivers (a significant part of Indonesia’s
population in 2021, concentrated among the informal transport sector), and agricultural
richest quintiles. workers – operate as independent, self-
employed, and small-scale producers.
The dominance of informality in Indonesia
makes informal social protection a key in Data suggest that the proportion of informal
supporting individuals and families, particularly employment in total employment in
in rural areas and among informal workers. Indonesia represented 81% in 2023 and
Many Indonesians still rely on community- hovered twelve percentage points above the
based, family, and religious support systems. ASEAN average, at 70% (Figure 10). This rate
However, these approaches depend on is falling only slowly, facing challenges, such as
community wealth and generosity, making them the impact of climate changes and the Fourth
unreliable during economic crises. Furthermore, Industrial Revolution.
they lack legal enforcement and do not
guarantee benefits. Lastly, as more Indonesians Figure 10: Proportion of informal employment in
move to cities, traditional family-based support total employment in Indonesia, ASEAN and
systems weaken. upper-middle income countries, %, 2023
90%
81%
80%
70%
70%
KEY FACTORS THAT CHANGE THE 60%
51%
LABOUR MARKET LANDSCAPE 50%

40%
Cross-cutting issues notably affect the labour
30%
market when intersecting with various economic,
20%
social, and environmental dimensions, impacting
10%
workers and employers across multiple sectors.
0%
In Indonesia, prominent topics influencing the Indonesia ASEAN Upper-middle income
countries
labour market include the impact of the Source: International Labour Organisation, Key Indicators of the Labour
Market (KILM).

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 Indonesia Labour Market Profile – 2025

Another central aspect of this high informality been on the rise in Indonesia; for instance,
rate hauns the country’s weak tax and vulnerable persons covered by social
employment statistic systems; for instance, assistance rose from 17% in 2019 to 50% in
there is no single way of measuring the informal 2021 as an impact of the Covid-19 pandemic
‘sector’. All enterprises in Indonesia, regardless (see more in the Social Protection section).56
of their size, must be registered by law. Micro-
or small enterprises dominate the Indonesian In Indonesia, informal workers are mainly in
labour market landscape, and 98% of firms the agricultural and service sectors; it is low
with fewer than ten employees are in the industry sector. Many Indonesia women
unregistered.55 This context implies that most work as domestic workers, which is on the rise,
firms operate outside the law and are and are often subject to informal, unsafe
considered informal. It is further dared by an working conditions both in the country and those
empirical task to differentiate between firms working abroad.57
and workers for whom informality is a voluntary
choice versus those for whom it is a last resort.
The Labour Union Law of 2000 focused on Climate change effect and the just
formal workers, sidelining the massive group of transition agenda
informal workers and new forms of workers Climate change is a cross-cutting factor that
such as gig and remote workers. This law reshape Indonesia’s labour market and
requires that a union be formed only if it has at economy by disrupting traditional jobs while
least ten members. Informal workers generally creating new economic opportunities in green
have less than ten members and are not industries. Actors in the labour market are
required to create a union. Overall, the tested for climate resilience, reskilling workers,
adverse environment challenges industrial and promoting sustainable job growth.
relations, organising workers, and performing
collective bargaining through social dialogue. Indonesia is the world’s largest archipelagic
On the positive side, unionism is emerging state, involving at least 17,500 islands with
among informal workers; some unions have highly varied geography, topography, and sea
been organising informal workers at the and coastal systems. The country is highly
community level using strategies in social vulnerable to climate change, which impacts
movement unionism. Trade unions also work floods, droughts, sea-level rise, rainfall, and
to extend training access to informal workers, temperatures. This climate change is expected
including domestic workers and ride-hailing to increase the occurrence and impact of
drivers; promote recognition of informal skills to natural hazards. High population density in
improve employability; advocate for inclusion hazard-prone areas and strong dependence
of informal workers in national employment on natural resource bases make them
insurance and skills schemes. vulnerable to projected climate variability and
climate change. Climate change is further likely
The government promotes implementing to affect water availability, health and
livelihood programmes and assistance, nutrition, the ability to manage disaster risk,
providing employment opportunities and and urban development, particularly in coastal
identifying measures to address the root causes zones. These bearings will be experienced
of informality among workers. The scope of across multiple sectors and regions,
these livelihood assistance programmes has

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 Indonesia Labour Market Profile – 2025

projecting costs between 2.5–7% of the emphasises a just transition for workers, the
country’s GDP.58 creation of decent, quality jobs, and providing
social protection to workers and their families
Indonesia ratified the Paris Agreement in 2016 to mitigate any adverse effects of the
and has incorporated climate considerations transition. However, the widespread informal
into its ambitious development agenda, setting economy continues to hamper the application
up carbon reduction emissions to 32% by 2030, of these policies.
achieving net zero by 2060, and mobilising
resources to achieve its climate ambitions. The
energy transition has been focused on reaching Fourth industrial revolution is
a cleaner energy system, involving direct reshuffling the labour market
impacts across sectors. This evolution is The Fourth Industrial Revolution (4IR) is
projected to trigger both job losses and job disrupting the labour market worldwide. Job
shifts; for example, new jobs are projected to displacement and gains due to digitisation are
create between 2.1 million and 3.7 million becoming more urgent, and upskilling and
direct jobs in renewable energy sectors by retooling are putting pressure on the TVET
2030.59 system. In Indonesia, projections suggest that
at least 20 million jobs could be replaced by
The legal framework that provides a road map automation by 2030, while 27 to 46 million
for implementing the energy transition is still new jobs could be created, including 10
under development. Although policy readiness million in new types of occupation.62
is in progress, measures for enterprises, active
labour market policies, and green skills Indonesia’s government has introduced 4IR as a
development are still lacking.60 It is worth strategic part of the development policy
mentioning that the Omnibus Law on Job agenda, including Making Indonesia 4.0 with a
Creation of 2023 cleared the way for the roadmap to revitalise its manufacturing sector.
privatisation of the electricity sector. It strives to become one of the global leading
economies in 2030. The five priority industries
Indonesia’s trade union movement has are food and beverage, automotive, textiles
contributed by building awareness about the and apparel, chemicals, and electronics.
energy sector transition and its implications
for workers. Education and training on energy 4IR advances a transformational effect on
change have been a priority. They are jobs and skills. So far, employment in
furthermore involved in preparing national manufacturing has been stalled, and people
energy transition policies and employment are becoming more dependent on services. On
transition plans at the enterprise level to ensure the positive side, youth in formal and non-
workers have access to skills training formal education and training and enrolled in
appropriate to the needs of the future labour vocational education have been on the rise,
market.61 supporting the 4IR policy agenda. On the
negative side, a difficulty is the widespread
The country identifies just transition as a key informal economy, limiting companies –
objective of mitigation and adaptation efforts particularly micro and small enterprises – to
at the policy level. It also signed the 2018 expand new and updated education and
Silesia Declaration on Just Transition, which training courses. As mentioned, Indonesian firms

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 Indonesia Labour Market Profile – 2025

offering formal training are low and meagrely App-based services (e.g., online drivers)
developing (revisit the Vocational Training sub- operating as informal workers face a barrier
section). to unionisation and access to social protection
insurance. This evolution further shifts attitudes
Indonesia is a popular outsourcing towards work-life balance, flexibility, and
destination due to relatively low labour career mobility.63 On the positive side, many
costs, a growing digital economy, business- gig workers have demonstrated a remarkable
friendly policies, political and economic capacity for self-organising, mutual aid and
stability, and a young and talented grassroots community participation of online
workforce. For example, the country offers drivers. It stands in contrast with the decrease
business process outsourcing (BPO) industry in union membership and participation in the
expertise. Big investments are in progress, formal sector.64
including Microsoft’s pledge of US$1.7 billion
to bolster Indonesia’s digital evolution, directed Another reflection is that individuals using the
at upskilling 840,000 Indonesians to support internet have accelerated and are getting
the burgeoning cloud and AI domains. closer to grasping the regional average. In
contrast, mobile cellular subscription
Another aspect is the rise of gig work, applications were a regional forerunner but
generally known for its flexibility and plummeted in 2018 due to the impact of new
minimal entry requirements. The emerging regulations for SIM card owners for telecom
sphere allows individuals without formal operators in Indonesia (see more in Figure 11).
qualifications to secure work, income, and
greater control over their work. This Figure 11: Individuals using the Internet (% of
phenomenon is fast-growing and has supported population) and mobile cellular subscriptions
the declining youth unemployment rate. (per 100 people) in Indonesia and East Asia &
However, it raises concerns about workers’ Pacific (EAS), 2010-2023
rights and protections since gig workers 180

operate largely outside the legal and 160

organisational framework of the formal 140

industrial relations system. 120

100
80
Law No. 21 of 2000 concerning Labour Unions
60
focuses on formal labour but is not up to date
40
in addressing the needs of new workers, such as
20
gig and remote workers. Some main
0
influences are that many companies prefer to
hire freelancers rather than permanent
Indonesia - Individuals using the Internet
employees, opening loopholes to minimise Indonesia - Mobile cellular subscriptions
EAS - Individuals using the Internet
disputes between workers and employers. EAS - Mobile cellular subscriptions
Source: The World Bank, World Development Indicators.

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 Indonesia Labour Market Profile – 2025

APPENDIX: ADDITIONAL DATA

Table 3: Indonesia’s legal framework on industrial relations

National legal framework
• Constitution of the Republic of Indonesia of 1945.
• Law No. 13/2003 concerning Manpower.
• Law No. 21 of 2000 Concerning Trade Union/Labour Union.
• Law No. 2/2004 concerning Industrial Relations Disputes Settlement.
• Decision of the Minister of Manpower and Transmigration No. KEP.232/MEN/2003 concerning the Legal
Consequences of Illegal Strikes.
• Government Regulation No. 8 of 2005 concerning Work System and Organizational Structure of
Tripartite Cooperation Institutes.
• Regulation on Guidance on the Settlement of Industrial Relationship Disputes through Bipartite
Negotiation (Regulation of the Minister of Manpower and Transmigration No. PER.31/MEN/XII/2008).
• Regulation of the Minister Manpower and Transmigration No. PER.32/XII/2008 Regarding Procedures
for the Establishment and Membership of Bipartite Cooperation Institutes.
• Ministry of Manpower and Transmigration Regulation No. KEP. 355/MEN/X/2009 on the National
Tripartite Employment Cooperation Institute.
• Minister of Manpower and Transmigration Regulation No. PER.16/MEN/XI/2011 concerning Procedures
for the Making and Legalization of Company Regulations and Procedures for the Making and
Registration of Collective Labour Agreements.
Source: International Labour Organization, IRLEX, Indonesia.

Table 4: Legal reservations in Indonesia concerning the rights to organise, collective bargaining, and strikes
Right to organise
• Barriers to the establishment of organisations.
• Categories of workers prohibited or limited from forming or joining a union, or from holding a union
office.
• Restrictions on trade unions’ right to organise their administration.
Right to collective bargaining
• Barriers to the recognition of collective bargaining agents.
• Restrictions on the principle of free and voluntary bargaining.
• Restrictions on the scope of application and legal effectiveness of concluded collective agreements.
• Limitations or ban on collective bargaining in certain sectors: Civil servants’ trade union rights are unclear
due to the lack of implementing legislation for these workers.
Right to strike
• Ban or limitations on certain types of strike actions.
• Limitations or ban on strikes in certain sectors.
• Undermining of the recourse to strike actions or their effectiveness.
• Barriers to lawful strike actions.
Source: International Trade Union Confederation, Survey of Violations of Trade Union Rights, Indonesia: Legal, February 2025.

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 Indonesia Labour Market Profile – 2025

Table 5: Status of ratified ILO Conventions in Indonesia

Subject and/or right Convention Ratification date
Fundamental Conventions
C087 - Freedom of Association and Protection of the Right to Organise,
Freedom of association 1998
1948
and collective bargaining
C098 - Right to Organise and Collective Bargaining Convention, 1949 1957
Elimination of all forms of C029 - Forced Labour Convention, 1930 1950
forced labour C105 - Abolition of Forced Labour Convention, 1957 1999
Effective abolition of child C138 - Minimum Age Convention, 1973 1999
labour C182 - Worst Forms of Child Labour Convention, 1999 2000
Elimination of C100 - Equal Remuneration Convention, 1951 1958
discrimination in
C111 - Discrimination (Employment and Occupation) Convention, 1958 1999
employment
C155 - Occupational Safety and Health Convention, 1981 Not ratified
Occupational safety and
C187 - Promotional Framework for Occupational Safety and Health
health 2015
Convention, 2006
Governance Conventions
C081 - Labour Inspection Convention, 1947 2004
Labour inspection
C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified
Employment policy C122 - Employment Policy Convention, 1964 Not ratified
C144 - Tripartite Consultation (International Labour Standards)
Tripartism 1990
Convention, 1976
Technical Conventions (Up-to-date)
Employment policy and
C088 – Employment Service Convention, 1948 2002
promotion
Hours of work, weekly rest 1972
C106 – Weekly Rest (Commerce and Offices) Convention, 1957
and paid leave
C185 – Seafarers’ Identity Documents Convention (Revised), 2003 2008
Seafarers
MLC – Maritime Labour Convention, 2006 2017
Protection in specific
C120 – Hygiene (Commerce and Offices) Convention, 1964 1969
branches of activity
Source: International Labour Organization, NORMLEX, Indonesia, February 2025.

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 Indonesia Labour Market Profile – 2025

Table 6: Scores for Labour Rights Index’s legislative performance indicators for Indonesia, 2024
Fair Decent Employment Family Maternity Safe Social Fair Child & Freedom of Index
wages Working Security Responsibilities at Work Work Security Treatment Forced Association score
Hours Labour
60 60 80 25 50 100 80 80 100 0 63
Note: Overall scores are calculated by taking the average of each indicator, with 100 representing the highest possible score.
Source: WageIndicator.org & Centre for Labour Research, Labour Rights Index 2024: Indonesia.

Table 7: Number of members in national trade union organisations and their share in total membership in
Indonesia
Organisations Membership Membership share

Trade union confederations / federations with representation in national tripartite structure

KSPSI (Pimpinan Presiden) * 649,747 20%

KSPSI (Pimpinan Ketua Umun) * 639,633 20%
KSPI * 589,091 18%

KSBSI * 386,295 12%

K Sarbumusi * 213,604 6.6%

KSPN ** 104,574 3.2%

FSP BUN ** 83,657 2.6%

FSP Kahutindo ** 62,466 1.9%

Other affiliated trade union organisations (confederation, federation and enterprise-level)

DPP 60,017 1.8%

FSP BUMN 44,845 1.4%

KASBI 35,571 1.1%

F PGRI 23,015 0.7%

SBSI 1992 22,482 0.7%

GSBI 19,262 0.6%

PPMI 98 12,454 0.4%

PPMI (Persaudaraan Pekerja Muslim Indonesia) 11,177 0.3%

K BUMN 5,878 0.2%

KSPSI 1973 5,502 0.2%

KSN (Nusantara) 4,409 0.1%

GASPERMINDO 3,362 0.1%

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 Indonesia Labour Market Profile – 2025

FSPNI 3,178 0.1%

FSP BALI 3,177 0.1%

KSN (Nasional) 2,956 0.1%

FNPBI 2,345 0.1%

OPSI 2,223 0.1%

FSP PARAS INDONESIA 2,008 0.1%

GASBIINDO 1,551 0.05%

SPSI REFORMASI 1,484 0.05%

SB MERDEKA SETIA KAWAN 1,438 0.04%

F TAMBUN 1,411 0.04%

F SBDSI 1,268 0.04%

PP SBTPI 884 0.03%

F IKMM 779 0.02%

F KBKI 742 0.02%

FBLP-PPBI 711 0.02%

SP SBMI (MANDIRI INDONESIA) 419 0.01%

FSP OTOMOTIF INDONESIA 403 0.01%

FSPTP 200 0.01%

FPBI 27 0.001%

Non-affiliated unions 251,780 7.7%

Total 3,256,025 100%

* Confederations. ** Federations.
Source: Ministry of Manpower, National Level Data Recapitulation, 2019

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 Indonesia Labour Market Profile – 2025

Table 8: Indonesia’s key workforce data, 2023

Indicator Value
Working Age Population 212,088,200
Employment rate 66%
Unemployment rate 3.3%
Employed share
Urban 55%
Rural 45%
Public 8.9%
Private 91%
Employed by aggregated sector share
Agriculture 29%
Industry 22%
Service 49%
Source: Indonesia Labour Force Survey 2023.

Table 9: Indonesia – Legal framework scores for women, business and the law, 2024
Safety Mobility Workplace Pay Mariage Parenthood Childcare Entrepreneurship Assets Pension
75 100 50 75 25 50 75 25 50 75
Source: The World Bank, Women, Business and the Law 2024.

Table 10: List of central education laws and policy for Technical and Vocational Education and Training in
Indonesia
TVET legal framework
• Presidential Regulation Number 68 of 2022 concerning Revitalization of Vocational Education and
Vocational Training of 2022.
• National Education Sector Plan of 2020.
• National Climate Change Learning Strategy of 2013.
• National Vocational Training Regulation (Government Regulation No. 31/2006) of 2006.
• Indonesian National Education System Law No. 20 of 2003.
Industry 4.0 Policy Landscape
• Presidential Decree No. 9 Year 2016 on “Revitalizing SMKs to Improve the Quality and
Competitiveness of Indonesian Human Resources.”.
• Policy Road map on Vocational Education 2017–2025.
• National Medium-Term Industrial Development Plan 2015–2019.
• National Industrial Development Master Plan 2015–2035.
• Manpower Regulation No. 36/2016 and the National Apprenticeship Framework
Programme.
• Community BLK Cooperation Plan.
Source: Technical Education and Skills Development Authority; Asian Development Bank, Reaping the Benefits of Industry 4.0 Through Skills Development in
Indonesia, January 2021.

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 Indonesia Labour Market Profile – 2025

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