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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

 
Employed Persons, by Occupation (% of Total Labour Force) 2015
Agriculture, forestry and fishing 32.9%
Wholesale and retail trade; repair of motor vehicles and motorcycles 18.6%
Manufacturing 13.5%
Construction 7.1%
Education 4.9%
Accommodation and food service activities 4.6%
Transportation and storage 4.0%
Public administration and defence; compulsory social security 3.5%
Financial and insurance activities 1.5%
Human health and social work activities 1.3%
Mining and quarrying 1.1%
Administrative and support service activities 0.9%
Information and communication 0.5%
Arts, entertainment and recreation 0.4%
Professional, scientific and technical activities 0.3%
Real estate activities 0.3%
Water supply; sewerage, waste management and remediation activities 0.2%
Electricity, gas, steam and air conditioning supply 0.2%
 
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
On October 15, 2019, the Minister of Labor issued circular B-M 308, 2019, which mandates provincial governors throughout Indonesia to increase their provinces’ minimum wage by 8.51 percent from the current 2019 rate, starting from January 1, 2020. The minimum nominal annual wage was USD 2,619 (USD 1.26 nominal hourly wage)
NB: the minimum wage fluctuates a lot depending on provinces.
Average Wage
The average salary in the country is around 12,100,000 IDR per month (USD 862).
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. As of 1 March 2019, there is a monthly income cap for pension contribution of IDR8,512,400. As of 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. As of 1 January 2020, maximum salary cap for health insurance is IDR 12,000,000. The maximum contribution on pension insurance monthly earnings is IDR 8,512,400, as of 1 March 2019.

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Social Partners

Social Dialogue and Involvement of Social Partners
We can mention the ASPEK Indonesia union.
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

Find out more about Operating a Business in Indonesia on GlobalTrade.net, the Directory for International Trade Service Providers.

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Actualitzacions: May 2022

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