Below is a list with tagged columns and company profiles.

Today's Headlines Employment

  • Manufacturing Sector Indonesia Absorbs 16.3 Million Workers

    Manufacturing Sector Indonesia Absorbs 16.3 Million Workers

    Indonesia's manufacturing sector is targeted to provide employment to a total of 16.3 million workers in 2017, up 5 percent from 15.5 million workers in the preceding year. As such, development of the manufacturing industry is a good strategy to reduce Indonesia's unemployment rate. Industries within the manufacturing sector of Indonesia that absorb the highest number of workers are the textile, footwear, food & beverage, and automotive industries.

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  • Number of Foreign Workers in Indonesia on the Decline

    Number of Foreign Workers in Indonesia on the Decline

    The number of expat workers in Indonesia is declining due to persistently low commodity prices and the government's stricter regulations regarding the hiring of expats. In the first five months of 2016 a total of 72,399 temporary residential permits (including renewals) were issued to expats. It is highly unlikely that the number of expat workers in Indonesia this year will equal the total of 171,944 foreign workers that were active in Indonesia in 2015. Actually the number of expats working in Indonesia has already been on the decline since 2011 (when the commodity slowdown reemerged).

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  • Unemployment Rate Indonesia Falls to 5.5% of Labor Force

    Unemployment Rate Indonesia Falls to 5.5% of Labor Force

    According to the latest data from Statistics Indonesia (BPS) the unemployment rate of Indonesia fell to 5.5 percent of the nation's labor force, or 7.02 million people in absolute terms, in February 2016 (compared to an unemployment rate of 5.81 percent one year earlier). The data from BPS also indicate that Indonesia's workforce - remarkably - shrank from 128.3 million in February 2015 to 127.8 million people in February 2016 particularly due to a decline in workers in the agriculture sector.

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  • Manufacturing Activity Indonesia Expands in March, End of Long Negative Streak

    Manufacturing Activity Indonesia Expands in March, End of Long Negative Streak

    After having experienced 17 straight months of contraction in the manufacturing sector, the Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) survey rose to a reading of 50.6 in March 2016 from 48.7 in the preceding month (a reading above 50 indicates expansion of manufacturing activity) according to a statement released on Friday (01/04). This is very positive news although Indonesia's export performance remains in a state of decline. Manufacturing expansion was primarily caused by a rise in domestic demand.

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  • Indonesia & ASEAN Economic Community: Free Flow of Skilled Labor

    Indonesia & ASEAN Economic Community: Free Flow of Skilled Labor

    With the implementation of the ASEAN Economic Community (AEC) per 1 January 2016 - i.e. the community that is designed to allow the free flow of goods, services, investment, and skilled labor as well as the freer flow of capital among its ten member countries - there has been concern among part of the Indonesian population whether there could occur a massive inflow of foreign workers into Indonesia hence giving rise to more competition on the domestic labor market. This column zooms in on the free flow of labor under the AEC.

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  • Statistics Agency: Unemployment in Indonesia on the Rise

    Statistics Agency: Unemployment in Indonesia on the Rise

    Unemployment in Indonesia increased to 6.18 percent of the labour force in August 2015, or 7.56 million people in absolute terms, from 5.81 percent in February (or 7.45 million unemployed people) as the economic slowdown led to layoffs and slower absorption of the workforce. In the second quarter of 2015 Indonesia's economy grew at the slowest pace in six years at 4.67 percent (y/y) and only managed to improve slightly (4.73 percent y/y) in the third quarter.

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  • Q3-2015 Foreign Direct Investment in Indonesia Grows 18.1% in Rupiah Terms

    Q3-2015 Foreign Direct Investment in Indonesia Grows 18.1% in Rupiah Terms

    The Indonesia Investment Coordinating Board (BKPM) announced on Thursday (22/10) that foreign direct investment (FDI) into Indonesia climbed 18.1 percent (year-on-year) to IDR 92.5 trillion (approx. USD $6.85 billion) in the third quarter of 2015 from the same quarter a year earlier. The Q3-2015 18.1 percentage point growth was almost the same as the 18.1 percent (y/y) increase in FDI posted in the previous quarter. FDI data from the BKPM does not include investment in the country's banking and oil & gas sectors.

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  • Fourth Economic Stimulus Package Indonesia: Employment

    Fourth Economic Stimulus Package Indonesia: Employment

    On Thursday (15/10), Indonesian Chief Economics Minister Darmin Nasution unveiled the fourth economic stimulus package with a main focus on boosting labor and employment in Indonesia. A key policy in the new package is the fixed formula that will be applied by the government to determine increases in labor wages across the 34 provinces of the Archipelago. The government said it will allow a wage increase, every year, based on the provincial inflation rate and economic growth pace.

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  • Indonesia to Announce Fourth Economic Policy Package on Thursday

    Indonesia to Announce Fourth Economic Policy Package on Thursday

    The government of Indonesia will announce a fourth stimulus package on Thursday (15/10). This new edition will focus on safeguarding employment in Indonesia. Due to the country's economic slowdown, concern about unemployment has risen. The Confederation of Indonesian Workers Unions (KSPSI) recently said that over 62,000 Indonesian workers lost their jobs during the first nine months of 2015.

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Latest Columns Employment

  • Illegal Strikes in Indonesia: Criteria and Consequences

    Besides regulating legal strikes in Indonesia, which we have discussed in our previous column, the Indonesian government also regulates illegal strikes performed by employees. According to article 142 Indonesian Law number 13 of 2003 regarding Manpower (Labor Law) illegal strikes are strikes which do not fulfill the notification requirements set out in the Labor Law or in case it is disrupting the public interest and/or endangering the public safety. In this week’s column we discuss the legal consequences of an illegal strike.

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  • Strikes in Indonesia: a Right of Employees

    Strikes in Indonesia: a Right of Employees

    Based on article 137 Indonesian Law number 13 of 2003 regarding Manpower (Labor Law), employees in Indonesia are permitted to perform strikes under certain conditions. The strikes can be either staged by employees or by labor unions which represent a group of employees. The Labor Law defines legal strikes which are held in accordance with legislation and illegal strikes which do not observe the rules set by legislation. In this column we will discuss the legal strikes. In our column of next week we will discuss the illegal strikes.

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  • Restrictions Employing Foreign Workers in Indonesia

    Law number 13 of 2003 regarding Manpower (Labor Law) and its implementing regulations are setting stringent restrictions to companies employing Foreign Workers (expatriates). Besides the licensing requirements as we discussed in our previous columns, the legislation sets other restrictions to companies which wish to employ foreign workers. In this weeks’ column we will discuss these restrictions to companies.

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  • Expatriate (Foreign Worker) Work Permit Indonesia - Part III

    Expatriate (Foreign Worker) Work Permit Indonesia - Part III

    This column is the third and final column regarding the work permit requirements for foreign workers (expatriates) in Indonesia. In the first column we discussed the requirements set by the Ministry of Manpower, which include (i) Foreign Manpower Utilization Plan (RPTKA), (ii) Approval Recommendation Visa (TA-01), and (iii) Work Permit (IMTA). In our second column we discussed the requirements set by immigration, which include Limited Stay Visa (VITAS) and Limited Stay Permit Card (KITAS). This week we discuss the remaining requirements set by the Police office, the departments of Labor and Demography and Civil Registration.

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  • Expatriate (Foreign Worker) Work Permit Indonesia - Part II

    In last week’s column we explained which licenses are required by the Ministry of Manpower for expatriates (foreign workers) who wish to obtain a work permit in Indonesia. We explained that the foreign workers (expatriate) who want to work in Indonesia must obtain the following permits which are issued by the Ministry of Manpower: (i) Foreign Manpower Utilization Plan (RPTKA), (ii) Approval Recommendation Visa (TA-01), and (iii) Work Permit (IMTA). Besides these permits, several other permits must be arranged at immigration, which we discuss in this week’s column.

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  • Fixed Term Employees in Indonesia: Early Termination

    Early termination of the employment agreement of fixed term employees in Indonesia is separately regulated from termination of permanent employees in the Indonesian Law number 13 of 2003 regarding Manpower (Labor Law). Fixed term employees have an employment agreement which will end at a particular date, or on completion of a specific task or project. In this column we will discuss the reasons of termination of the employment agreement of fixed term employees and its financial impact on the employee or the company.

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  • World Bank Report: How Can Indonesia Avoid the Middle Income Trap?

    World Bank Report: How Can Indonesia Avoid the Middle Income Trap

    On Monday (23/06), the World Bank released its latest analysis regarding the Indonesian economy. In its report, titled ‘Indonesia: Avoiding the Trap’, the World Bank states that Indonesia needs to implement a six reforms in priority areas in order to avoid the so-called middle income trap (referring to the situation where a country gets stuck at a certain income level). Without these critical reforms, the country’s economic growth will slow and may not be able to escape the middle income trap.

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  • Youth Unemployment in Indonesia: A Demographic Bonus or Disaster?

    Youth Unemployment in Indonesia: A Demographic Bonus or Disaster?

    High youth unemployment is one of the threats that is being faced by Indonesia. Indonesia has a young population as roughly half of the total population is below thirty years of age. This means that the country contains a potentially large workforce. But this demographic bonus can turn into a demographic disaster if this workforce cannot be absorbed by employment opportunities. The World Bank recently warned against Indonesia's high youth unemployment and misplaced focus on education spending.

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  • World Bank: East Asia Pacific at Work: Employment, Enterprise & Well-Being

    World Bank Report "East Asia Pacific at Work: Employment, Enterprise and Well-Being"

    As rapid economic development has pushed the percentage of people working in most East Asian countries to among the highest in the world, policy makers should enact labor regulations and social protection policies to benefit all workers, including those in the large informal economy, according to a new World Bank report, East Asia Pacific at Work: Employment, Enterprise and Well-Being (released on 8 May 2014). Current regulations, however, favor salaried, prime-age males at the expense of women and youth.

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  • Indonesia's Consumer Confidence Rises Slightly in September 2013

    Indonesia's Consumer Confidence Rises Slightly in September 2013

    The Consumer Confidence Index of Indonesia rose 0.9 percent in September 2013 after having fallen 8.4 percent in the previous month. In September, the index rose because Indonesian consumers are more confident about prospects of the Indonesian economy, while concerns about the increase of certain food prices eased. Purbaya Yudhi Sadewa, chief economist at the Danareksa Research Insititute, said that in September 77.4 percent of consumers were concerned about rising food prices, down from 82.5 percent in August.

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