Indonesian Labor Research Articles

What made you do moonlighting? A tale from the Indonesian labor force survey

What made you do moonlighting? A tale from the Indonesian labor force survey

Workers and Democracy: The Indonesian Labour Movement, 1949–1957, by John Ingleson

Workers and Democracy: The Indonesian Labour Movement, 1949–1957, by John Ingleson

Gaps in Legal Protections for Female Workers: A Socio-Legal Study in Tolitoli, Indonesia

The lack of adequate safety, health guarantees, and protection of rights for female workers presents a significant challenge within Indonesia’s labor sector, particularly in Tolitoli Regency. This study seeks to analyze the legal protection available to female workers across the country, with a specific focus on the fulfillment of their rights in Tolitoli Regency. Employing an interdisciplinary approach, the research utilizes a socio-legal methodology, supported by empirical observations. Data sources include relevant laws, regulations, and previous research findings, assessed through scientific and descriptive qualitative methods. The findings indicate that while Indonesian labor laws provide a normative framework for worker protection, specific legal safeguards for female workers are not fully enforced. There are clear disparities in the ability of different societal groups to access the protections and rights guaranteed by the state. In Tolitoli, many female workers are still unable to fully exercise their rights. Female workers are often regarded as mere production tools rather than valuable assets, which leads to a low level of employer responsibility, with profit motives prevailing. The Omnibus Law on Job Creation is expected to enhance the business environment while ensuring that female workers’ rights are protected.

The influence of regional minimum wages on unemployment rates in Indonesia multiple linear regression analysis

Background: This study investigates the influence of regional minimum wages, along with gross domestic product (GDP) and inflation, on unemployment rates in Indonesia from 2012 to 2020. Method: Multiple linear regression analysis is employed to examine the relationships between these economic variables. Findings: The findings reveal that regional minimum wages have a significant negative effect on unemployment rates, indicating that a 1% increase in the minimum wage leads to a 3.951% decrease in unemployment, ceteris paribus. GDP also exhibits a significant negative influence, aligning with Okun's law which suggests an inverse relationship between economic growth and unemployment. In contrast, inflation does not significantly impact unemployment rates during the studied period. Collectively, the three variables positively and significantly affect Indonesia's unemployment rate, with an adjusted R-squared value of 0.749. This implies that 74.9% of the variation in unemployment can be explained by GDP, inflation, and minimum wages, while other factors account for the remaining 25.1%. Conclusion: The study highlights the complex interplay between these macroeconomic indicators and unemployment, providing insights for policymakers to develop effective strategies for managing employment challenges in Indonesia. Novelty/Originality of this study: This empirical analysis reveals the dynamic relationship between regional minimum wages, GDP, inflation, and unemployment in Indonesia (2012-2020). The findings provide an evidence-based basis for formulating more effective and responsive employment and economic policies for Indonesia's labour market conditions.

The Ideal Legal Protection of the Child Labor Rights in Indonesia: The Dimensions of Maqāṣid al-Sharī‘ah and the Welfare State

The legal protection of child labor rights in Indonesia, which is regulated in the Indonesian legislation, was not yet ideal. There are many working children (aged 13 to 15 years) in Indonesia whose rights to a prosperous life have not been fulfilled, both in the maqāṣid al-sharī‘ah dimension and in the welfare state dimension. Thus, this research was about the ideal legal protection for the rights of child workers in Indonesia, and the aim was to know and look for the concept of ideal legal protection for the rights of child workers of 13-15 years of age in Indonesia which was in accordance with maqāṣid al-sharī‘ah and the welfare state. This normative research discussed the constitution and laws related to child labor rights by examining the main legal materials, theories, concepts and legal bases related to this research. The results of this research explained that the legal protection of child labor rights in Indonesia was not yet ideal due to lack of clarity in the labor law itself. Meanwhile, the findings in this research; legal protection for the rights of child workers aged 13 to 15 years in Indonesia was not yet ideal because it was not yet in accordance with the dimensions of maqāṣid al-sharī‘ah and the welfare state, and because child labor in Indonesia was still considered unlawful, therefore many children in Indonesia became neglected and poor.

Improving Indonesia's export competitiveness through human capital investments

This research was conducted to analyze the influence of education investment, health investment, HDI, and labor productivity on Indonesian exports of goods and services simultaneously or partially. This type of research is quantitative research. The samples in this research are an investment in education, investment value in health, HDI, labor productivity, and the value of Indonesian exports using time series data from 1994 to 2023. Analysis is used to calculate directly the magnitude of the influence of investment value in education, investment value in the health sector, HDI, labor productivity as the independent variable, and the value of Indonesian exports as the dependent variable. The findings in this research are that the investment value variables in the education sector and the investment value in the health sector have no significant effect on the value of Indonesian exports. The variable value of the Human Development Index and the value of Indonesian labor productivity have a positive and significant effect on the value of Indonesian exports. Meanwhile, in the simultaneous test of independent variables, the investment value of the education sector, the investment value of the health sector, the value of the Human Development Index, and the productivity of Indonesian labor have a positive and significant effect on the value of Indonesian exports.

Motivasi Calon Pekerja Migran Indonesia Bekerja ke Luar Negeri dan Kontribusinya Bagi Negara Indonesia

Fulfilment of the needs of a decent life and the desire to change their fate are the main highlights in the choice of Indonesian citizens to decide to work abroad. In line with this, there is a positive response from the employer country regarding the demand for Indonesian labour. The research method used is narrative qualitative by conducting a data collection process carried out twice when prospective Indonesian migrant workers (CPMI) carry out OPP (Pre-departure Orientation) activities before heading to South Korea. The first data collection was conducted on 27 January-1 February 2023 which took place in Surabaya which was a mixture of new CPMIs and CPMIs who had previously left. The research findings are that there are stages that must be passed by CPMI before leaving for South Korea, one of these stages is OPP. During the implementation, 89 participants were interviewed with questions about the underlying motivation to work abroad. The answer was 73% answering money as the main reason as well as motivation to be able to live decently. Another impact apart from a decent living felt by CPMI is the contribution to the country. In the second quarter of 2023, the contribution to the country reached IDR 77.35 trillion. This is certainly a positive achievement whose impact can be felt both by citizens and the Indonesian state. Migrant workers make investments from the income saved to build businesses, renovate houses, pay debts, buy assets in the form of land, to the education of migrant workers' families. Some also actively empower the surrounding community in running their business, so that it automatically has a major contribution to poverty reduction in Indonesia by encouraging economic growth.

LEGAL PROTECTION OF WORKERS WITH A SPECIFIC TIME WORK AGREEMENT (PKWT) IN THE TRANSFER OF OUTSOURCING COMPANIES FOLLOWING THE ENACTMENT OF LAW NO. 6/2023

Employment relations can occur due to the existence of work, orders, and wages. Indonesian labor law recognizes two forms of employment relations, which are employment relations with a Specific Time Work Agreement (PKWT) and an Indefinite Time Work Agreement (PKWTT). This research aims to obtain further understanding of Government Regulation No. 6/2023 on Job Creation. This regulation is a result of the Government's efforts to fulfill legal protection of people's rights to work and a decent livelihood for humanity through job creation. This research uses a statutory approach and a conceptual approach. The types of legal materials used are primary, secondary and tertiary legal materials which are then systematically inventoried and categorized to solve real problems and try to formulate accurately, clearly and appropriately about the comparison of Law No. 13/2003 on Manpower and the Government Regulation on Job Creation (Law No. 6/2017 on the Stipulation of Government Regulation in Lieu of Law No. 2/2016 on Job Creation into Law). The results indicated that employees who are bound by a Specific Time Work Agreement (PKWT) after the enactment of the Government Regulation in Lieu of the Job Creation Law receive legal protection and compensation from outsourcing companies. This compensation is given to outsourced employees after the end of the work agreement, such as outsourcing companies, in accordance with the provisions stipulated in the preceding regulation.

Politics of International Labor Migration and the Survival of (Illegal) Brokers in Indonesia

Indonesian labor migration is a multifaceted process heavily influenced by private actors, particularly brokers who operate both within the bounds of legality as recruitment agencies and outside it as illicit recruiters. These brokers are frequently accused of exploiting Indonesian migrant workers, leading to government efforts to limit their roles. However, despite legislative efforts, such as the 2017 law aimed at restricting the roles of labor-recruiting companies and illegal brokers, these intermediaries persist. Drawing on the concept of brokerage and the Theory of Strategic Action Field, this article explains why brokers remain despite legislative challenges. This study also argues that state regulations inadvertently create structural holes, thereby providing brokers with opportunities to maintain their involvement in labor migration. Through 56 in-depth interviews with various actors—including current and former migrant workers, recruiters, recruitment agencies, civil society organizations (CSOs), and government officials—the study illuminates how the Indonesian government’s framing of "procedural migration” contains inherent loopholes. Brokers then exploited these gaps to legitimize their presence and assert control over workers’ destinies. These brokers adeptly adapt to regulatory changes and influence migration.

KEPEDULIAN SOSIAL MASYARAKAT PERBATASAN DALAM MEMPERTAHANKAN KETAHANAN EKONOMI (KASUS DI TEMAJUK, PALOH, SAMBAS KALIMANTAN BARAT)

Local wisdom of social care is the culture of helping one another to build food resilience in the Malay community in the border of Temajuk district of Sambas. For the Malay community to be a professional farmer, abundant food resources can survive without dependence on others. This research uses qualitative discrepancy methods by demonstrating food sustainability in a cultural perspective. The results of the study explained that social concerns have helped a former Indonesian labour force citizen who returned to his hometown to stop living in Serawak Malaysia so that he did not have a fixed job and decided to become a farmer. Social care is a form of support of the Malay people to others against each other voluntarily, through the approach of social capital such as economic resilience assistance through the provision of productive land and trade networks with neighbouring countries, thus creating resiliency with the community at the Temajuk border.

Labour market institutions for immigrants: The case of high‐wage migrant workers in Indonesia

AbstractThis paper presents a novel ‘legal process’ analysis to examine labour market institutions' role in addressing violations of migrants' labour rights in Indonesia. Examining 92 labour disputes and conducting qualitative interviews with stakeholders, the study explores Indonesia's primary labour market institutions' effectiveness in safeguarding migrants' rights. Systemic shortcomings within Indonesia's labour market institutions are revealed, indicating their limited capacity to protect migrants' labour rights effectively. Qualitative interviews provide insights into various foci and disconnects contributing to institutional failures. Calling attention to the role of the state, this study identifies ‘institutional fixes’ that facilitate migrant rights protection, such as the assistance provided by private lawyers. It argues for shifting focus from ‘migrant exceptionalism’ to acknowledging migrants' experiences within labour market institutions as workers. This study contributes to understanding migrant labour governance in Indonesia, emphasizing the need to address institutional failures and advocate for comprehensive reforms to protect migrants' rights effectively.

Pengangguran dalam Perspektif Ekonomi Islam dan Kovensional: Pengertian, Sebab, dan Solusi

This article discusses one of the employment problems in Indonesia, namely unemployment. This relates to employment management, including conventional and sharia (Islamic) components. The economic and social aspects of people's lives are greatly influenced by where they work. In a sharia (Islamic) perspective, employment and unemployment are aspects of employment issues with certain ethical and moral guidelines. This article discusses and investigates conventional and sharia perspectives on the problem of unemployment, including its definition, causes, solutions and implications for the Indonesian labor market. Researchers used qualitative techniques and library research data to write this article.

Sustainable Workforce in a Green Era: Indonesia’s Energy Sector Transition

The purpose of this study is to determine and analyze the effect of renewable energy transition variables and economic viability in the Indonesian employment industry on the balance of business sustainability through social and environmental development as an intervening variable. The subjects of this study are small, medium, and large industry owners in Indonesia, totaling 5,993,566 business units. The variables in this study are independent variables, namely the variables of renewable energy transition and economic viability in the Indonesian labor industry, while the dependent variable is the balance of business sustainability, and the intervening variable is the variable of social and environmental considerations. The results of the data analysis are made through SEM analysis through SMART PLS 4.0 software. From the results of existing research, it is concluded that partially renewable energy transition variables and viability variables in the Indonesian labor industry have a direct effect on the balance of business sustainability and social and environmental consideration variables. Simultaneously, the renewable energy transition variable and the viability variable in the Indonesian labor industry indirectly affect the business sustainability balance variable through social and environmental considerations as intervening variables. With the renewable energy transition process, it will have an impact on people's good social lives because there is no threat of environmental damage or natural disasters, so the environment is safe, the industry creates a technology transfer process, and it increases economic viability in the labor industry in Indonesia in order to create quality human resources. With this transition process, trained human resources are needed and are also able to adapt well to the transition process and technology transfer in order to balance the sustainability of industrial businesses.

A Fantastic Pool of Potentially Huge Funds Behind Tapera

This research examines the controversial Tapera program introduced by the Indonesian government to provide a long-term, low-cost housing fund, analyzing its financial implications and public perceptions. Using secondary data sources and qualitative analysis techniques, this study estimates that the program could generate around IDR 201 trillion per year from Indonesian labor income. However, public sentiment remains mixed, with concerns regarding the mandatory nature of the program and its impact on low-income communities. These findings underscore the need for further exploration of Tapera's alignment with national development goals and its role in addressing housing affordability challenges. Highlights : The Tapera program could generate significant funds annually from Indonesian labor income. Public sentiment toward Tapera remains mixed due to concerns about its mandatory nature and impact on low-income communities. Further exploration is needed to assess Tapera's alignment with national development goals and its effectiveness in addressing housing affordability challenges. Keywords: Tapera program, Indonesian government, housing affordability, public perception, financial implications

Indonesia Employment in 2023: Labor Force Conditions and Policy Developments in the Early Stages of the Demographic Bonus

In 2023, amidst the complexities of a volatile global economy, Indonesia demonstrated economic resilience, propelled by its dynamic workforce. This abstract synthesizes the intricate interplay between macroeconomic forces and employment trends within Indonesia, drawing from comprehensive data analyses and policy evaluations. The report encapsulates a year marked by economic recovery despite global headwinds such as the Russia-Ukraine conflict, inflation surges, and supply chain interruptions. With a predicted global growth of 3.6% by the IMF, Indonesia's economy experienced fluctuations but maintained a growth trajectory from Q2 2022 to Q2 2023. Labor force data indicates a predominance of the working-age population, signaling potential for sustained productivity and economic fortitude. The demographic composition, skewed towards a younger populace, underpins the vibrant labor market. Employment policies have been responsive to digitalization, globalization, and demographic transitions, focusing on skill development, vocational training, and job safety. Notably, vocational training for SMK graduates was prioritized to match industry requirements. Regulatory advancements aim to balance worker protections with corporate operational efficiency. Amidst COVID-19's lingering impact, policy adaptations were crucial to support workers and businesses, exemplifying Indonesia’s agility in times of crisis. The landscape of employment disputes, predominantly centered around termination, underscores the necessity for robust conflict resolution mechanisms. With 71.15% of industrial disputes tied to terminations, mediation emerged as the preferred dispute resolution strategy. Regional data unveiled disparities in job placements and complaints, spotlighting the need for equitable workforce distribution and grievance redressal mechanisms. The report concludes that Indonesia's labor policies and employment conditions are dynamically evolving, poised to sculpt a robust, inclusive, and sustainable labor market landscape.

Blocked by Neoliberalism: A Glance at the Workers Movement’s Role in Achieving a Just Transition

An effort to protect workers throughout an economic transition to a sustainable economy gave rise to the concept of a just transition. This is because the transition will have an effect on the employment in which workers are engaged. Based on this concept, this study examines Indonesia’s worker response to a just transition. Non-doctrinal research was used to conduct the study. This study shows that the question of a just transition is not now at the forefront of the workers movement in Indonesia. Neoliberalization of Indonesian labour law, nollen vollens, encourages the workers movement to continue concentrating on economic concerns, particularly those involving the fundamental rights of workers. Under these circumstances, Indonesia runs the risk of failing to accomplish a just transition, which would put workers in a ‘dark world’ while the economy moves towards a green economy.

Workers and Democracy: The Indonesian Labor Movement, 1949–1957, by John Ingleson

Workers and Democracy: The Indonesian Labor Movement, 1949–1957, by John Ingleson

The Impact of ILO Convention No. 182 (1999) on Safeguarding Against Child Labor in Indonesia

Child labor poses a serious challenge to Indonesia's commitment to children's rights and workplace protection. ILO Convention No. 182 has become a crucial global guideline in combating this issue. Using doctrinal legal research with an analytical descriptive component and includes the comparative approach, the statute approach, and the historical approach. Using secondary data, which included primary, secondary, and tertiary legal material and with library research and examined resources relating to the topics under investigation with qualitative analysis. Before ratification, weak enforcement and inadequate regulations left child workers vulnerable to health risks and exploitation. The ratification marked a pivotal moment, aligning Indonesia's laws with international standards to better safeguard children from exploitative labor practices, emphasizing the urgent need for stronger protections and enforcement measures.

THE INFLUENCE OF NATIONAL LEGAL POLITICS ON THE MINIMUM WAGE SYSTEM LABOR LAW PERSPECTIVE

The government has the authority to determine wage policies relating to the relationship between workers and employers and provide protection to workers, including through minimum wage instruments, which are regulated through the Labor Law and its implementing regulations. The formation of statutory regulations is formed through a political-legal process that cannot be separated from the influence between the parties with an interest in it. If you look at the current condition of workers in Indonesia, they are still very weak and marginalized because the wages they receive are still relatively unable to keep up with the increasing needs for life. Through this article, the author wants to examine how national legal politics influence Indonesian employment system policies and what factors influence the calculation of minimum wages. This research is a type of doctrinal legal research using normative juridical methods with a descriptive analytical approach and analyzed qualitatively, by examining the laws that apply in Indonesia through statutory regulations related to workers' wages. The results of this research show, firstly, that legal politics influences Indonesian labor regulations. It can be seen that labor regulations not only regulate workers and employers but also cover issues of the economic system and political system. Second, minimum wages are determined based on economic and employment conditions with calculations that focus on economic variables and certain indices symbolized by alpha. Determining minimum wages as a policy line aims to create decent living needs for workers and their families in order to protect workers' rights and avoid arbitrary actions by companies, as well as encouraging economic growth in each region.

Strategy for Increasing Exports Through ICT Development and Potential Market Mapping: Case Study of Indonesia Labor Intensive Industries

Purpose: This research aims to specifically identify the role of ICT in the export performance of Indonesia's la-bor-intensive industries and Mapping potential market for Indonesia's labor-intensive industries export.
 Design/methodology/approach: The analysis was carried out by developing a gravity model and estimated using the Pseudo Poisson Maximum-Likelihood (PPML) and Generalized Method of Moment (GMM) methods as robust-ness tests.
 Findings: The estimation results show that ICT, both from the quantity aspect and the quality aspect, has a positive and significant impact on the volume of Indonesian exports. The results of this estimation have been proven to be consistent through several tests by controlling the problems of endogeneity, simultaneity, and auto-correlation.
 Research limitations/implications: The model developed in the study tends to interact with variables from both countries, namely Indonesia as an exporter country and a partner country for importing Indonesian products. The application of this kind of interaction causes the results of the interpretation to be unable to specifically explain the effect of variables in each country.
 Originality/value: This study discussed the impact of ICT through the quality and quantity aspects, this study also used product-level data, so the interpretation results more specifically explained the impact of ICT. Further analysis in this study also contributes significantly to identifying which partner has a potential market as the main destination of Indonesia's exports.