Jakarta, hitclubapk3 Indonesia
—
World Bank
highlighting the large number of young Indonesians working in the sector
informal
.
This is stated in the December 2025 edition of the Indonesia Economic Prospects (IEP) report.
In the report, labor absorption was recorded to increase by 1.3 percent (yoy) in August 2025.
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However, the jobs that did increase were mostly low-paid, including in the informal sector.
“Young people who are just entering the workforce are disproportionately more likely to find low-quality, informal jobs,” said the report, which was launched on Tuesday (16/12).
The World Bank highlights that young Indonesians have succeeded in finding work, but they tend not to have jobs that are stable and provide protection.
Individuals aged 15-24 years who enter the workforce generally work in the low-level informal sector.
This international financial institution noted that only less than 15 percent work in the formal sector in this age range.
Even in the 15-35 age range, most remain in low-paid informal jobs throughout their careers.
On the other hand, formal workers are not necessarily protected.
“Only 11 percent of formal wage workers in the 15-35 year age group have complete social security protection (health, work accidents, death, old age, pension) as well as a written work contract,” said the World Bank.
The World Bank also highlights that real wages in Indonesia have continued to decline in recent years.From 2018 to 2024, average real wages fell by about 1.1 percent per year.
Workers with high skills experienced the largest decline, namely 2.3 percent per year, followed by workers with medium skills whose wages fell 1.1 percent per year.
In contrast, the real wages of low-skilled workers actually increased slightly by around 0.3 percent per year.
“The only sectors that have not experienced a decline in real wages for highly skilled workers are high value-added manufacturing, the utilities sector (especially electricity), and information and communications technology (ICT),” explained the World Bank.
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