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The Active Population in Figures

201820192020
Labour Force 132,587,588135,802,879134,616,083

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 68.98%69.65%70.20%
Men activity rate 83.67%83.85%84.14%
Women activity rate 54.01%55.18%55.99%

Source: International Labour Organization, ILOSTAT database

 
For Further Statistics
The Indonesian Labor Market
For Further Information About the Labour Market
Portal for official information about Indonesia

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Working Conditions

Legal Weekly Duration
The legal duration of work is 7 hours a day and 40 hours a week for 6 working days in a week, or 8 hours a day and 40 hours a week for 5 working days in a week.
Retirement Age
55
Working Contracts
The work contract is essentially governed by the law and to a lesser extent by individual negotiation and collective agreements. Hiring conditions are strict and the formality of the work contract is rather rigid.

There are two types of contracts: fixed term and open-ended.

Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
The minimum wage fluctuates a lot depending on provinces. In January 2022, the highest minimum wage was for Jakarta, at 4,641,854 rupiah per month (USD 322.10), an increase of 5.1% from 2021. The lowest minimum wage was for Central Java, at 1,812,935 rupiah per month, an increase of 0.78% from 2021.
Average Wage
The average salary in the country is around 12,100,000 IDR per month (USD 862) (Salary Explorer, 2022).
Social Contributions
Social Security Contributions Paid By Employers: 0.24%-1.74% for work accident protection; 0.3% for death insurance; 3.7% for old age savings; 2% for pension; 4% for healthcare. The monthly income cap for pension contribution is updated annually. Since 1 January 2020, maximum salary cap for health insurance is IDR12,000,000.
Social Security Contributions Paid By Employees: 2% of gross monthly earnings for old age insurance; 1% of gross monthly earnings for health insurance; 1% for pension. As of 1 January 2020, maximum salary cap for health insurance is IDR 12,000,000. The monthly income cap for pension contribution is updated annually.

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Social Partners

Employer Associations
APINDO - Employers' Association of Indonesia
KADIN - BSD - Indonesian Chamber of Commerce and Industry
Social Dialogue and Involvement of Social Partners
We can mention the ASPEK Indonesia union.
Labour Unions
National Front for the Indonesian workers' struggle (FNPBI)
Unionisation Rate
Less than 4% of the active population (formal and informal sectors) and 14% of the active population (formal sector).
Labour Regulation Bodies
National Portal of Indonesia with information about work market and regulations

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Actualitzacions: March 2024

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