Labour market developments in the Jokowi Years

Chris Manning, Devanto S Pratomo

    Research output: Contribution to journalArticle

    Abstract

    This study reviews the developments in Indonesia's labour markets during the Joko "Jokowi" Widodo presidency. It is set in the context of changing employment, wages and productivity since the Asian Financial Crisis and under the previous (Yudhoyono) government. We argue that Jokowi's approach as a former businessman - aided by his like-minded vice-president, Jusuf Kalla - together with macroeconomic developments, has been positive for employment and wages, although less so for labour productivity. Formal sector jobs have continued to grow rapidly and recover somewhat in manufacturing, while the downward trend in unemployment has been sustained. Reform of the minimum wage setting processes has not endeared the president to vocal union groups, but appears to have moderated minimum wage increases close to the main industrial centres. At the same time, a wider wage gap has emerged between permanent and casual workers, which could have contributed to the rising inequality in the country. In an attempt to boost productivity, the current administration has put considerable effort into improving skills that are in demand. However, progress is likely to be slow mainly because of the low quality of basic schooling.
    Original languageEnglish
    Pages (from-to)165-184
    JournalJournal of Southeast Asian Economies
    Volume35
    Issue number2
    DOIs
    Publication statusPublished - 2018

    Fingerprint

    Dive into the research topics of 'Labour market developments in the Jokowi Years'. Together they form a unique fingerprint.

    Cite this