A Guide to Hiring in Indonesia
Published: September 2024This issue of ASEAN Briefing magazine features an overview of the Indonesian labor market, along with the local employment laws and regulations. The magazine also highlights the employment trends and emerging sectors in Indonesia.
Hiring in Indonesia requires a nuanced understanding of the country's diverse and evolving labor market. With over 130 million people in the workforce, Indonesia is one of the largest labor markets in Southeast Asia. The population is predominantly young, providing a dynamic pool of potential employees. However, most of the workforce is engaged in informal employment, often lacking formal contracts and benefits. This can present challenges for businesses looking to hire formally and ensure compliance with labor regulations.
The Indonesian government has been focusing on reforming the labor law to improve skill development and job creation, aiming to transition more workers into the formal sector. Despite challenges like underemployment and gender disparities, the Indonesian labor market offers substantial opportunities for businesses. Companies that are adaptable and culturally sensitive will find Indonesia a rewarding place to hire and grow their operations.
This issue of ASEAN Briefing magazine features an overview of the Indonesian labor market, along with the local employment laws and regulations. The magazine also highlights the employment trends and emerging sectors in Indonesia.