Indonesia’s jobs boom is a story of quantity, not quality
“The core problem is not employment itself, but the nature of employment. According to Indonesia’s National Labour Force Survey, the country created around 18 million jobs between 2018 and 2024. But more than 80 per cent were in household enterprises, while just 2.6 million jobs came from corporations and large factories, with fewer than a million jobs created in government-related roles.”
“Household enterprises like street vendors, home-based workers and family-run shops may offer flexibility, but they are deeply informal and poorly paid. In 2023, nearly 59 per cent of Indonesia’s workers were employed informally without insurance and earning below the minimum wage.”
“In most cases, employees in household enterprises face a persistent wage penalty. In their first year, they earn on average 9.6 per cent less than government employees and 57.6 per cent less than corporate employees. With an average starting wage of just Rp 1.6 million (US$96.5) per month, these jobs fall short of what it takes to join the middle class.”
“This divide is pronounced across sectors. Sectors with the lowest wages and job quality such as agriculture and food services led job creation, with agriculture alone adding over 4.2 million jobs. But sectors that offer stable, better-paying work like finance, health and public administration added far fewer jobs.”
https://eastasiaforum.org/2025/07/17/indonesias-jobs-boom-is-a-story-of-quantity-not-quality/