Below is a list with tagged columns and company profiles.

Today's Headlines Employment

  • Manufacturing Activity Indonesia Contracts for 12th Straight Month in September

    Manufacturing Activity Indonesia Contracts for 12th Straight Month in September

    For the 12th consecutive month Indonesia's manufacturing activity contracted as output and new orders declined. The Nikkei/Markit purchasing managers' index (PMI) fell to 47.4 in September 2015 from 48.4 in the preceding month and below analysts' forecasts (a reading of 50.0 separates contraction from expansion). September's contraction was the second-fastest drop in Indonesia's manufacturing activity since the index was started in early 2012.

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  • Indonesian Language Proficiency Requirement for Foreign Workers Scrapped

    Indonesian Language Proficiency Requirement for Foreign Workers Scrapped

    Several weeks ago it had already been reported that Indonesian President Joko Widodo requested Manpower and Transmigration Minister Hanif Dhakiri to revise a draft regulation (made in 2013) that forces expats to pass a mandatory Indonesian language proficiency test in order to be eligible to obtain a work permit. According to Widodo this regulation jeopardizes the attractiveness of Indonesia’s investment climate.

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  • No Indonesian Language Proficiency Test for Foreign Workers in Indonesia

    No Indonesian Language Proficiency Test for Foreign Workers in Indonesia

    Indonesian President Joko Widodo wants to drop the regulation that states a foreign worker needs to learn Indonesian. Today (21/08), Cabinet Secretary Pramono Anung said President Widodo (often called Jokowi) requested Hanif Dhakiri, Indonesian Minister of Manpower and Transmigration, to revise this regulation (that was issued in 2013). According to Jokowi the language proficiency requirement would make Indonesia’s investment climate less competitive and could therefore hamper much-needed investment.

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  • World Bank Drastically Cuts Indonesia’s 2015 Economic Growth Forecast

    World Bank Drastically Cuts Indonesia’s 2015 Economic Growth Forecast

    The World Bank cut its forecast for economic growth in Indonesia in 2015 from 5.2 percent year-on-year (y/y) to 4.7 percent (y/y) as private consumption, which accounts for about 55 percent of total economic growth in Indonesia, is estimated to weaken further in the second half of 2015 while government spending has been lower than expected (causing subdued fixed investment). Furthermore, persistent low commodity prices and tighter credit conditions provide further pressures that led to the extreme downward revision.

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  • OECD: Improve Job Quality, Reduce Gender Inequality for Economic Growth

    In the latest report of the Organization for Economic Co-operation and Development (OECD) the institution emphasizes that gender equality in employment should be promoted by governments in order to combat income inequality and thus achieve not only a more just and harmonious society but also boost inclusive economic growth. In most countries gender equality remains a matter of concern. The report also states that governments should not ignore the importance of broadening access to jobs and encourage investment in education.

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  • World Bank: Rehabilitating Indonesia’s Coral Reefs for People’s Welfare

    World Bank: Rehabilitating Indonesia’s Coral Reefs for People’s Welfare

    Coremap, a project supported by the World Bank, aims to revive Indonesia’s coral reefs in an effort to improve the welfare of coastal communities in Indonesia. By rehabilitating coral reefs, the country’s fish population, vital to the livelihoods of local communities, can expand. Moreover, the rehabilitation of coral reefs entails better opportunities in the (eco)tourism sector as it will attract underwater tourism. As such, new small businesses can be established in the coastal areas.

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  • Consumer Confidence in Indonesia Falls Slightly on Fuel Prices & Inflation

    The latest survey of Indonesia’s central bank showed that consumer confidence fell slightly in November 2014 amid concern that the recent subsidized fuel price hike will lead to decreased business activity as well as reduced job availability in the next six months in Southeast Asia’s largest economy. Bank Indonesia’s consumer confidence index fell to 120.1 points from 120.6 points in October. The institution interviewed 4,600 households in 18 major Indonesian cities for this survey.

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  • Minimum Wages Indonesia: Ahok & Jakarta’s Minimum Wage Growth

    Acting Jakarta Governor Basuki “Ahok” Tjahaja Purnama said that the minimum provincial wage for Jakarta (Upah Minimum Provinsi) will not exceed IDR 2.7 million (USD $221) in 2015. This new minimum wage would mean a 10.3 percentage point increase from Jakarta’s current minimum wage of IDR 2.44 million (USD $200). According to the acting Governor, the new minimum wage would be above the needed salary to have an acceptable standard of living in the capital city of Indonesia (which Ahok puts at IDR 2.53 million or USD $207).

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  • Unemployment Rate of Indonesia Rises Slightly in August 2014

    Amid slowing economic growth, Indonesia’s unemployment rate increased slightly in August 2014. On Wednesday (05/11), Statistics Indonesia announced that 7.24 million Indonesians, or 5.94 percent of the country’s labour force, were without a job. In the previous unemployment report (covering conditions in the month February 2014), Indonesia’s unemployment rate stood at 5.70 percent of the country’s labour force (about 7.15 million Indonesians). The government agency releases Indonesia’s unemployment data twice per year.

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  • World Bank: Poverty Reduction in Indonesia Slows; Inequality Rises

    The World Bank released a news update which states that poverty reduction in Indonesia continues to slow down, with only a reduction of 0.7 percentage points over the last two years, or the smallest decline in the last decade. Meanwhile the institution says that inequality also increased in recent years, potentially disrupting social cohesion and hence jeopardizing the gains from solid economic growth, which has helped to reduce the poverty rate to 11.3 percent in 2014, compared to 24 percent in 1999.

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Latest Columns Employment

  • JobTech Provides 1st Whole Country Online Jobs Scan of Indonesia

    JobTech Provides First Whole Country Online Jobs Scan of Indonesia

    JobTech has initiated coverage on Indonesia's rapidly expanding technology sector. In tandem with the launch of Indonesia’s 2020 Go Digital Vision to become the biggest digital economy in Southeast Asia, technology jobs in Indonesia account for 42 percent of total unique online jobs from January-June 2017. Of these, more than 60 percent of the job postings are localized in Jakarta. Based on the trending in the first half of 2017, technology jobs in Indonesia are expected to continue to grow strongly for the rest of the year.

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  • How Many Foreigners Actually Work in Indonesia? No Hoax!

    How Many Foreigners Actually Work in Indonesia? No Hoax!

    Over the past couple of weeks public outcry ensued in Indonesia due to rumors (a hoax) that said there are currently about ten million workers from China in Indonesia, implying these immigrants are (potentially) "stealing" jobs from the local population. Xenophobia and nationalist sentiments are no strangers to Indonesia, a country that faced a long colonial period, and therefore this hoax easily ignited anxiety among (part of) the Indonesian people. But how many foreigners are currently actually working in Indonesia?

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  • Link between Indonesia's National Education Day & International Labor Day

    Relation between Indonesia's National Education Day & International Labor Day

    The month May is a memorable month for Indonesia in terms of historic significance. On 21 May 1998 former president Suharto - who ruled the country for more than three decades through his authoritarian New Order regime - resigned after having become politically isolated after Jakarta had turned into a bloody battlefield. This was one of the largest events in the political history of Indonesia, causing structural changes in the political system. Other key days in May are International Labor Day (1 May), National Education Day (2 May), and National Awakening Day (20 May).

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  • Wages of Indonesian Employees Reregulated (2/3)

    Wages of Indonesian Employees Reregulated (2/3)

    In our previous column we have already discussed regulations regarding the wage structure, non-wage and calculation of wages of employees in Indonesia based on the Ministry of Manpower issued regulation number 78 of 2015 concerning Wages (New Regulation). The column of this week is a continuation of the previous column and discusses the other wage regulations set by the New Regulation, which includes regulations regarding payment of wages during absence of the employee.

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  • Income Inequality in Indonesia Threatens Social, Economic & Political Stability

    Income Inequality in Indonesia Threatens Social, Economic & Political Stability

    The World Bank says income inequality in Indonesia is widening and as a consequence the fruits of Indonesia's economic growth over the past decade have only been enjoyed by the richest 20 percent of Indonesian society, leaving behind the remaining 80 percent of the population (or 200 million people). In its new report titled "Indonesia's Rising Divide" the World Bank states that rising inequality in society can jeopardize social cohesion, as well as political and economic stability over the long term. The report claims that inequality in Indonesia has reached a relatively high level and is climbing faster than in most of its regional peers.

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  • Indonesia Amends 10 Local-Staff-per-Foreign-Worker (Expat) Rule

    Indonesia Amends Local-Staff-per-Foreign-Worker (Expat) Regulation

    When the Indonesian government unveiled Ministry of Manpower Regulation No. 16/2015 in July, foreign companies in Indonesia became nervous. The regulation required that for every foreign worker (expat) in Indonesia, 10 locals would need to be hired. Although the regulation would not work retroactively, while new foreign companies in Indonesia would be allowed to hire low-paid non-permanent staff (such as office boys or drivers), the regulation met resistance from international chambers of commerce.

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  • Bipartite Dispute Resolution for Labor Disputes in Indonesia

    Bipartite Dispute Resolution for Labor Disputes in Indonesia

    In our previous column we have already explained that dispute resolution for labor disputes in Indonesia generally follows three general steps, i.e. bipartite dispute resolution, tripartite dispute resolution and dispute resolution of labor disputes through the industrial relations court (Labor Court). In the column of this week we take a closer look at the rules and procedures governing the bipartite dispute resolution. The employer and employee in Indonesia are required to perform this bipartite negotiations, before the dispute is being resolved through e.g. mediation or court.

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  • Limited Stay Permit (KITAS) for Expatriates in Indonesia

    Limited Stay Permit (KITAS) for Expatriates in Indonesia

    Expatriates which are working in Indonesia require a limited stay permit (KITAS). In order to obtain a limited stay permit several licenses must be arranged. In previous columns we have explained the procedure for obtaining these licenses, which include a foreign manpower utilization plan (RPTKA), a foreign manpower work permit (IMTA) and telex visa. Before being able to obtain a limited stay permit (KITAS), expatriates and their employer must have arranged aforementioned licenses. In this column we will elaborate further about the limited stay permit (KITAS) for expatriates.

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  • Director Cannot be Considered as Employee in Indonesia

    Director Cannot be Considered as Employee in Indonesia

    Directors in Indonesia cannot be considered employees in Indonesia, because Indonesian Law number 13 of 2013 regarding Manpower (Labor Law) defines them as entrepreneurs. This has several implications of directors in Indonesia. The biggest implication is that directors do not enjoy the strong employee protection based on the Labor Law. Directors are therefore advised to carefully draft their service agreements to ensure sufficient protection. In this column we will explain the exact status of a director in Indonesia.

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  • Slowing Economy of Indonesia: Rising Youth Unemployment

    Slowing Economy of Indonesia: Rising Youth Unemployment

    Hariyadi Sukamdani, Chairman of the Indonesian Employers Association (Apindo), expressed his concern about unemployment in Indonesia, particularly unemployment among the younger generation of Indonesians (aged between 15 and 29). Amid slowing economic growth over the past six years, various industries have been cutting employment. With roughly half of the total population below 30 years of age, Indonesia’s demographic bonus can turn into disaster if this potential workforce fails to obtain employment opportunities.

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