According to data from Statistics Indonesia (Badan Pusat Statistik), Indonesia was visited by over 725 thousand foreign visitors in March 2013, up 10.1 percent compared to the same month last year. The Indonesian government has set the ambitious target of welcoming a total of nine million foreign tourists in 2013. In 2014, it wants at least 10 million foreigners to visit Indonesia. The government expects these increases to originate mainly from the Asia-Pacific region itself.

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The first of May is celebrated as International Labors’ Day which should be a tribute to workers’ contributions to the flourishment and well-being of a country’s economic growth. However, today, there are more than 2 million workers in Indonesia being laid off and placed on furlough due to economic disruption caused by COVID-19 outbreak.

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Constructing a comprehensive outlook of a country’s political and macroeconomic climate requires a firm grasp on the nature of general labor, employment, and the trajectory of the labor-market. Such an endeavor is especially important in considering Indonesia, which again finds itself at a juncture in labor-market development. Questions over a ‘demographic dividend’ are emanating amid new budgetary propositions, waning consumer confidence, and the post-election tempering of popularized radical politics.

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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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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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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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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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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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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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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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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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