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An Overview of Women's Work and Employment in Indonesia

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An Overview of Women's Work and Employment in Indonesia An Overview of Women’s Work and Employment in Indonesia Decisions for Life MDG3 Project Country Report No. 14 University of Amsterdam / Amsterdam Institute for Advanced Labour Studies (AIAS) www.uva.nl/aias Maarten van Klaveren, Kea Tijdens, Melanie Hughie-Williams, Nuria Ramos Martin email: [email protected] Amsterdam, Netherlands, February 2010 1 Table of Contents Management summary 4 1. Introduction: The Decisions for Life project 7 2. Gender analysis regarding work and employment 8 2.1. Introduction: the general picture...................................................................................................... 8 2.1.1. History 8 2.1.2. Governance 12 2.1.3. Prospects 16 2.2. Communication ................................................................................................................................ 18 2.3. The sectoral labour market structure ............................................................................................. 20 2.3.1. Population and employment 20 2.3.2. Formal and informal employment 22 2.3.3. Unemployment 24 2.4. National legislation and labour relations ...................................................................................... 26 2.4.1. Legislation 26 2.4.2. Labour relations and trade unionism 30 2.5. Minimum wage and poverty .......................................................................................................... 32 2.5.1. The statutory minimum wage 32 2.5.2. Inequality and poverty 34 2.6. Demographics and female labour force......................................................................................... 39 2.6.1. Population and fertility 39 2.6.2. Health 41 2.6.3. Women’s labour market share 42 2.6.4. Agriculture 45 2.6.5. Mining and manufacturing 46 2.6.6. Commerce 48 2.6.7. Services 49 2.6.8. Government 50 2.7. Education and skill levels of the female labour force .................................................................. 51 2.7.1. Literacy 51 2.7.2. Education of girls 52 2.7.3. Female skill levels 54 2.8. Wages and working conditions of the target group .................................................................... 57 2.8.1. Wages 57 2.8.2. Working conditions 59 3. Basic information for WageIndicator Questionnaire 61 3.1. Introduction....................................................................................................................................... 61 3.2. List of trade unions........................................................................................................................... 62 3.3. List of educational categories and ISCED levels .......................................................................... 67 2 3.4. List of regions.................................................................................................................................... 67 3.5. List of ethnic groups and languages ............................................................................................. 76 3.5.1 Ethnic groups 76 3.5.2 Languages 76 4. References 76 5. What is WageIndicator? 83 3 Management summary This report provides information on Indonesia on behalf of the implementation of the DECISIONS FOR LIFE project in that country. The DECISIONS FOR LIFE project aims to raise awareness amongst young female workers about their employment opportunities and career possibilities, family building and the work-family balance. This report is part of the Inventories, to be made by the University of Amsterdam, for all 14 countries involved. It focuses on a gender analysis of work and employment. History (2.1.1). After, in 1949, the Netherlands as colonial power had formally recognised Indonesian sovereignty, the Sukarno administration moved from democracy towards authoritarianism. In 1965-66 it was replaced by another authoritarian but more pro-western regime, the New Order of Suharto. The crisis of 1997-98 and the reformasi movement resulted in Suharto’s fall and a stepwise opening to democracy. In the 2000s the Indonesian economy from year to year showed respectable though not quite high growth figures. Governance (2.1.2). In spite of the current multiparty democracy, problems remain with compliance, especially in maintaining human, worker and women’s rights. Corruption at regional and local levels remains virulent. The position of women in politics is weak, though the 2009 elections saw a rise of female representation in parliament to 11 to 18%. Women’s position within the family context is difficult. Recently many women have been confronted with domestic violence and sexual harassment. Prospects (2.1.3). The global economic crisis has had a limited impact on Indonesia economy, and the prospects for the country’s rebound seem rather bright. Subcontracted, casual and temporary workers in export-oriented industries as well as migrant workers have borne the brunt of job cuts in 2008-09. Communication (2.2). Though the number of fixed lines is still increasing, telephone use is rapidly switching to cellular phone networks. In 2008, already 599 of each 1,000 in the population used a cell phone. Internet coverage is still modest, with in 2008 about 12.5% of the population as users. With 95% of all households TV has high coverage, but radio is the most popular medium. The sectoral labour market structure – Population and employment (2.3.1). With 53% in 2008, women’s Labour Participation Rate (LPR) in 2008 was moderate, whereas the male rate of 85% was high. In the 2000s the female LPR fell and the male rate increased. In 2008 about 39% of all employed worked in agriculture, 13% in manufacturing, and 48% in services, with the female shares being 40%, 14% and 46%. The sectoral labour market structure – Formal and informal employment (2.3.2) Slightly over 30% of all employed and less than 28% of females is currently working in the formal sector. About 42% of the total labour force and 32% of the females are self-employed. In the early 2000s the informal sector absorbed the largest amount of new entrants to the labour market, but this reversed in 2003-04. The sectoral labour market structure – Unemployment (2.3.3). In the course of the 2000s unemployment for women remained at a higher level than for men. Unemployment is highest among youngsters, with for girls and young women in 2008 an official unemployment rates of over 18%. Legislation (2.4.1). Indonesia has ratified the core ILO Labour Conventions. Yet, for unions there are a number of serious constraints. on collective bargaining and declaring strikes. The ITUC remains highly critical of the country’s enforcement of labour legislation. Labour relations and trade unionism (2.4.2). Under Suharto’s New Order trade unions were disciplined, with (K)SPSI (con)federation as main vehicle of these policies. After the collapse of the Suharto regime 4 the right to organise was restored. Since then, the union movement developed in highly fragmented direction. Union density can be estimated at 8-10% for the labour force at large. Women have a weak position in the union movement, though incidental successes in collective bargaining on behalf of women can be traced. The statutory minimum wage (2.5.1). The statutory minimum wage structure is complex and not transparent. Though the minimum wage rates are based on cost of living calculations, after the gap between minimum living needs and (average) minimum wage levels has widened. Moreover, the informal sector is not included. Compliance and enforcement are weak. Poverty (2.5.2). For 2005, it has been estimated that 53.8% of its population lived below the poverty line of USD 2 a day. From 1999 on, income inequality is growing. Official inequality seems low, but correction for varying consumption patterns brings Indonesia in the middle-high inequality ranks. The incidence of working poor is highest among casual workers, followed by unpaid and own-account workers. There may be a shift to urban poverty: in the 2000s the number of slum dwellers in the cities has increased strongly. Population and fertility (2.6.1). Current population growth is estimated at 1.3% per year, and is still slowing down. With 2.2 children per woman, the total fertility rate is rather low. With an estimated 51 to 54 births per 1,000 women 15-19 of age, the adolescent fertility rate is in the low-to-moderate range worldwide. Indonesia is urbanising at high speed, with in 2008 52% living in urban areas. Health (2.6.2). In 2007, in Indonesia about 270,000 people lived with HIV/AIDS. Epidemics concentrate among injection drug users and sex workers. Health disparities are considerable, and government expenditure on health care is low. Women’s labour market share (2.6.3). The 2008 women’s share in the labour force was nearly 38%. It was highest in households (76%), health and social work (57%), restaurants and hotels (56%), and education (55%). In 2008 still about 40% of women employed worked in agriculture, followed by wholesale and retail (22%). 48% of female employees and 45% of the total female labour force worked in services, broadly defined. With 22% respectively 24% in 2008, the Indonesian shares of female legislators, senior officials and managers among employees respectively the labour force at large were rather low. Agriculture (2.6.4). Problems of land fragmentation, poor bureaucracy and infrastructure still dog agriculture. Under the prevailing conditions it is unlikely that many young women living in urban areas and trying to make a career can rely on a “fall-back scenario” in which they can go back to their families
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