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Labor Markets in Indonesia: Key Challenges and Policy Issues

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Labor Markets in Asia

Abstract

Until 1997, Indonesia’s economy was among the faster growing in both the region and the developing world generally. Economic growth of around 5% over a period of 25 years had brought significant gains to workers and the population more widely. Poverty rates declined dramatically from the 1970s to 1996, and at the same time a steadily growing share of Indonesia’s labor force made the transition from agriculture to industry and services. Poverty rates decreased from around 40% in 1976 to around 11% in 1996. The share of workers in agriculture declined fairly constantly from around 55% in 1990 to around 41% in 1997. Over this period, industry saw its share of the workforce increase from 14% to 19%.

The authors thank participants at the workshop, Improving Labor Market Conditions in Indonesia (15 November 2005, Jakarta), Jesus Felipe, and Rana Hasan for very useful comments on an earlier draft of the chapter.

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Author information

Authors and Affiliations

  1. Economics and Research Department, Asian Development Bank, Philippines

    Guntur Sugiyarto

  2. Insan Hitawasana Sejahtera, Indonesia

    Mayling Oey-Gardiner & Ninasapti Triaswati

Authors
  1. Guntur Sugiyarto
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  2. Mayling Oey-Gardiner
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  3. Ninasapti Triaswati
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Editor information

Editors and Affiliations

  1. Asian Development Bank, Philippines

    Jesus Felipe  & Rana Hasan  & 

Copyright information

© 2006 Asian Development Bank

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Cite this chapter

Sugiyarto, G., Oey-Gardiner, M., Triaswati, N. (2006). Labor Markets in Indonesia: Key Challenges and Policy Issues. In: Felipe, J., Hasan, R. (eds) Labor Markets in Asia. Palgrave Macmillan, London. https://doi.org/10.1057/9780230627383_6

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