Indonesia has long been struggling with high
unemployment. Visit AbbreviationFinder to see the definitions of INA and acronym for Indonesia. During the economic crisis of 1997-98, many
industrial workers lost their jobs, which resulted in part
because about 10 percent of the population in the early
2000s were unemployed. After 2010, this figure has dropped
to around 6 percent.
The country's president since 2014, Joko Widodo, is the
first Indonesian president who does not have a background
from the country's political and military elite. Widodo went
to election with the promise of promoting increased economic
growth and promised investments in infrastructure,
manufacturing, education and poverty reduction. This has
been reflected in economic stimulus packages in the form of
reduced industry regulations, tax cuts for investors and
reduced import duties.
Since the Asian financial crisis in the late 1990s,
Indonesia has been characterized by high unemployment and
underemployment. In 2016, the unemployment rate was 5.6
percent. However, youth unemployment is considerably higher,
about 20 percent. Some estimates show that one third of the
workforce is underemployed. Among these are mainly women and
young people affected.
Women make up almost 40 percent of the workforce but have
a weak position in the labor market. On average, women earn
57 percent less than men. Women also risk losing their job
in connection with pregnancy or parental leave.
The manufacturing industry as well as the construction
and finance sectors were hit hard by the financial crisis,
which has led many Indonesians to seek work abroad. In
addition to the large number who do not have a work permit
abroad, almost 3 million Indonesians work legally abroad.
The working week is 40 hours. In addition to national
holidays, workers are entitled to 12 days' holiday.
One third of the workforce works in agriculture, while
the tourism industry and industry each employ one fifth of
the working population.
Nowadays, the International Labor Organization (ILO)
considers Indonesian labor law to be employee friendly,
which is a difference since before. During the Suharto
regime, only one government-controlled trade union was
allowed. Until 1990, strikes were prohibited. Improvements
were made in 1994, including a minimum wage, collective
bargaining at individual workplaces were allowed and the
army's right to dissolve strikes was restricted. In 2017,
the minimum wage in Indonesia amounted to just over SEK
2,000. Following Suharto's fall in 1998, trade union
activities have become stronger and more influential, while
many new trade unions have been formed.
Although prohibited by law, employers sometimes oppose
employees' union involvement. Similarly, the minimum wage
that is set annually by the state is not always followed.
Teachers and government employees are not covered by the
strike right. The informal sector is large and employs an
estimated 21 percent of Indonesian workers. Particularly
vulnerable are the approximately 8 million, preferably
women, who are employed by households. These often operate
under slave-like conditions.
Child labor is prohibited up to the age of 12 but
nevertheless occurs especially in agriculture, mining and
industry. 3.7 per cent of children aged 10-14 years under
difficult conditions in the mining industry. Of Indonesia's
prostitutes, 30 percent are estimated to be minors.
Household young girls are particularly exposed to the risk
of being sexually exploited. According to the country's
public statistics, there are an estimated 40,000 street
children in Indonesia. A quarter of these are in Jakarta.
The retirement age in Indonesia in 2015 was 56 years. It
is gradually increased every three years until it reaches 65
years. In 2016, unemployment benefits were missing for
Welfare and poverty
Poverty is widespread. 40 percent of the Indonesian
population lives on $ 2 a day. Poverty is particularly
widespread in the country's eastern and rural areas.
The economic inequality in Indonesia, which in terms of
population is the world's fourth largest country, is
extensive. In 2016, Indonesia ranked sixth in the world in
terms of economic differences. At the same time, Indonesia
is a growing country with an economy on the rise and claims
for social benefits are high.
Indonesia began introducing state social insurance in
2004. This is expected to be implemented in 2019. Social
insurance must include free health care, life and accident
insurance, unemployment and health insurance and pensions.
In 2016, however, only half of the population were covered
by public insurance systems. Private insurance exists for
those who can afford it.
Health care has been improved, primarily through more
rural health centers, increased access to clean water and
implemented vaccination programs. Life expectancy has risen
significantly. In 2015, women and men lived 21 and 17 years
longer than 1960. At that time, the average life expectancy
was 50 years.
Infant mortality is decreasing but, together with high
maternal mortality, health problems are a priority for the
government. 37 percent of all children under the age of five
suffer from impaired physical and mental development as a
result of malnutrition and unilateral diet. In addition to
the immediate health problems that this entails, the
government considers this problem as growth inhibition for
Indonesia in the long run. Furthermore, the environmental
degradation associated with the palm oil industry as well as
forest and peat fires adversely affects the health of parts
of the country's population.
By law, women are equal to men. The woman has a statutory
right to sexual and reproductive health. At the same time, a
married woman cannot obtain contraception without her
Abortion is prohibited except when the woman's life is in
danger or when she has been raped. Under these
circumstances, abortion must be done with the permission of
the woman's husband or father and within 40 days of her
Female genital mutilation is recurring and almost half of
the country's girls under 11 are sexually abused. Female
genital mutilation was legalized in 2010, officially with
the aim of ensuring that hospital staff perform the
procedures. The decision has drawn criticism from human
In the 1980s and 1990s, campaigns were conducted to limit
childbirth in Indonesia, where families have historically
been large. In 2016, the fertility rate had more than
halved. Mothers are entitled to 3 months parental leave.
This cannot be transferred to the fathers.
With the support of New Zealand, in 2016 a pilot program
for childcare for young children was implemented in hundreds
of Indonesian villages. The goal was to establish a national
coverage of childcare in the long term with preschool
activities in each individual village.
The position of the Indonesian woman varies greatly
between different groups in Indonesia. In the matrilineal
culture of the Minangkabau people of western Sumatra, only
women own land and property inherited exclusively by
daughters. In areas where stricter forms of Islam are
practiced, the woman's position is instead weak and her life
is more limited. Child marriage occurs frequently. The law
allows marriage for girls from the age of 16. The
corresponding age for men is 19 years.
The view of LGBTQ people varies across the country. Some
areas have a long tradition of tolerance towards transgender
people. In more religious and conservative parts of
Indonesia, intolerance is widespread. Homosexuality is not
prohibited, but laws on moral conduct and anti-pornography
law are used to criminalize LGBTQ persons.
There is great intolerance to homosexuality. Same-sex
marriages are legally disputed as, on the one hand, they are
not prohibited by criminal law, but on the other hand are
determined as deviant behavior under the Anti-Pornography
Act. As a result of several condemning statements by
ministers and religious leaders in 2016, the situation for
LGBTQ people has worsened.
The government is working to strengthen the rights of
people with disabilities, whose opportunities to participate
in political life on the same terms as other citizens are
The actual situation of people with disabilities is
usually difficult. Inadequate care is a widespread problem,
especially in rural areas. People with disabilities are
usually entirely financially dependent on their families.
People with mental illness are subjected to physical and
sexual abuse in connection with their institutionalization
under difficult conditions. Although prohibited, it is
common for people with mental illness to be chained. This is
done both in private homes and in institutional