The active population in figures

Working conditions

Legal weekly duration

The legal duration of work is 7 hours a day and 40 hours a week for 6 working days in a week, or 8 hours a day and 40 hours a week for 5 working days in a week.

Retirement age

55

Working contracts

The work contract is essentially governed by the law and to a lesser extent by individual negotiation and collective agreements. Hiring conditions are strict and the formality of the work contract is rather rigid.

There are two types of contracts: fixed term and open-ended.

Cost of labor

Minimum wage

The minimum wage is fixed by decree by the different provincial governors. It varies according to the provinces and the districts, and according to the sector concerned. In 2007, the average minimum wage was 673 300 Rp/month.

Average wage

Average monthly gross earnings in Indonesia is IDR 1,199,187 (USD 118).

Social contributions

Social security contributions paid by employers: 7.24% to 11.74%.
Social security contributions paid by employees: 2%

Social partners

Social dialogue and involvement of social partners

We can mention the ASPEK Indonesia union.

Unions

Trade union congress of Indonesian workers (KSPI)
National Front for the Indonesian workers' struggle (FNPBI)

Unionization rate

Less than 4% of the active population (formal and informal sectors) and 14% of the active population (formal sector).

Labor regulation bodies

Ministry of Labor and Transmigration