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Employment and Workforce Issues around Election Season

“Employment and Workforce Issues around Election Season”

The 2024 Indonesian election has just concluded. Currently, the vote counting is still ongoing and will continue until March. But whoever the elected president is will face significant challenges in handling the country’s issues, one of which is employment and workforce problems. According to, the structure of employment in Indonesia is increasingly dominated by informal jobs that are inadequate in terms of wages, job security, and labor protection.

On the other hand, formal employment is not a guarantee of decent work either. Referring to BPS data s of August 2023, workers in sectors with the highest labor absorption, such as trade and agriculture, are still paid below the national average wage. Wage growth in the manufacturing sector is also slow, only slightly above the national average wage.

Meanwhile, a labor force deficit still exists over the past three years. The Omnibus Law on Job Creation has proven unable to address this issue. According to a study by the Institute for Development of Economics and Finance (Indef), despite the increasing value of foreign investment in Indonesia over the past decade, the contribution to the absorption of Indonesian labor has not exceeded 50%.

These problems have significant impacts, not only on the welfare of the society but also on the economic advancement of Indonesia. It will be interesting to see the breakthroughs that the elected president will make in addressing these issues.

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