double-skinned crabsVietnamese crab exporterexellent crabgood crab

Can Indonesia Provide A Better Life for Its Workers?

Thomas Rizal & Jayanty Nada Shofa
May 2, 2025 | 12:24 pm
SHARE
Workers join the May Day Rally wearing Joker masks at Jakarta's National Monument on May 1, 2025. The comic-book villain has become an icon in many government protests across the world. Some of the signs urge the government to stop the country's layoff waves and address the wage gap. (Antara Photo/Fauzan)
Workers join the May Day Rally wearing Joker masks at Jakarta's National Monument on May 1, 2025. The comic-book villain has become an icon in many government protests across the world. Some of the signs urge the government to stop the country's layoff waves and address the wage gap. (Antara Photo/Fauzan)

Jakarta. Approximately 200,000 workers marched to Jakarta’s National Monument to make sure that their voices on labor concerns are heard by the government on Thursday. It was not just the bustling metropolis that had these rallies. Countless others in other parts of the country -- or even the world -- took to the streets demanding workers' rights.

Like clockwork, people across the globe will stage worker rights demonstrations on May 1. May Day, as known by many, marks the struggles of workers. Indonesia’s workforce totaled 152 million people -- including those unemployed -- as of August 2024, according to the Central Statistics Agency (BPS). A CIA report showed that Indonesia's labor force is the world's fourth-largest as of 2023. China topped the labor force list, followed by India and the US. But has Indonesia already met its workers’ needs? 

Can Indonesia Provide A Better Life for Its Workers?
Total labor force figures by country according to the CIA World Factbook report. (File Photo)

Plenty of Homework
When it comes to labor issues, the highly populated Indonesia still has a lot of things to work on. BPS data reported that nearly 7.5 million people were unemployed as of August 2024. Indonesia has witnessed massive layoffs happening across labor-intensive industries. The Manpower Ministry recorded that as many as 18,160 people were laid off in the first two months of 2025. 

ADVERTISEMENT

No company is immune to layoffs, no matter what their size is, regardless of their sector. Indonesia’s largest textile firm Sritex had to lay off over 10,000 workers over bankruptcy issues. Japanese electronics company Sanken is slated to halt its Cikarang operations this June, thus stripping 459 people of their jobs.

Fewer orders also prompted Tangerang-based Nike suppliers -- Adis Dimension Footwear and Victory Ching Luh -- to lay off 3,500 workers. And these layoffs hit Indonesia before US President Donald Trump decided to slap the now-paused steep import taxes on Jakarta. Estimates run by think-tank Celios revealed 1.2 million Indonesians could lose their jobs this year due to Trump’s tariff salvo and the heightened US-China trade war.

Can Indonesia Provide A Better Life for Its Workers?
Sritex workers visit their factory in Sukoharjo, Central Java, for the last time on Friday, Feb. 28, 2025. (Antara Photo/Mohammad Ayudha)

Indonesian labor union KSBSI’s chairperson Elly Rosita Silaban said that workers today were still worried about the same old problems. This includes outsourcing -- a practice in which companies hire external providers to do parts of their jobs for less costs. Outsourced workers typically earn less than the full-time, internal employees. Other concerns include the recurring contracts that go on for way too long with little to no chance of getting promoted to a full-time employee.

“Every year, Indonesian workers always complain about the same issue. This means that the government has yet to really address those issues,” Elly said.

Indonesian lawmakers have recently assembled a team to discuss possible changes to the 2003 Manpower Law. Experts and labor unions have already proposed some recommendations. Elly said she hoped the House of Representatives would not ignore the workers’ concerns. 

Senior economist Bhima Yudhistira said the upcoming regulatory changes should deal with age discrimination in the recruitment process. In Indonesia, anyone over 30 is often seen as being “too old for the job”. Amidst the rising contract termination, the country has to make sure that those laid-off -- many of whom are not in their 20s -- can work in the formal sector again. Official statistics showed that around 92 million Indonesians within the labor force are in their 30s to 50s. Bhima told the Jakarta Globe that Indonesia should follow in other countries’ footsteps to impose sanctions on age discrimination in hiring.

“Take Vietnam, for example. If an employer discriminates against a candidate based on age or gender, the company has to pay around Rp 6 million [approximately $356] in fines to the [Vietnamese] government. Imagine if there are 100 candidates, the fine could grow to Rp 600 million. Such strict sanctions are needed,” Bhima said.

Can Indonesia Provide A Better Life for Its Workers?
People flock a job fair in South Jakarta on April 29, 2025. (B Universe Photo/Joanito de Saojao)

Labor leader Said Iqbal revealed that workers were still far from living an ideal life. About 70 percent of them are only elementary and middle school graduates. Low wages and inadequate social insurance still paint a grim picture of Indonesia’s working conditions. Said is keeping his fingers crossed for the government to “improve the workers’ quality of life through better education and wages."

Businesses, too, made some requests on May Day. The Indonesian Chamber of Commerce and Industry (Kadin) said that discussions on the 2003 Manpower Law revisions should provide solutions that were mutually beneficial to both workers and businesses. The business group highlighted the need to “boost workers’ skills”. Kadin wants the government to make sure that it still maintains the country’s conducive business climate when trying to meet the workers’ demands.

Prabowo’s Promises
Thursday marked the first May Day under President Prabowo Subianto. The retired army general made his May Day debut by speaking to a large crowd of rally-goers in front of Jakarta’s National Monument. In a fiery speech, Prabowo promised labor unions a lot of things, including unveiling a plan to set up a so-called workers’ welfare council that will act as advisors to the president. 

“I wish to give you guys a present. … This council should inform me which policies put workers at a disadvantage, and give advice on which need improvements,” Prabowo told the crowd.

When the Trump tariff news hit the world, the Prabowo administration floated a plan to establish a layoff task force to cushion its impact. Prabowo brought up this plan again in the May Day rally, saying that “we must not let our workers be laid off on a whim. If necessary, the state will not hesitate to intervene if that happens.”

Can Indonesia Provide A Better Life for Its Workers?
A rally-goer holds up a sign that says "Working Without Being Enslaved" at a May Day rally in Malang, East Java, on May 1, 2025. (Antara Photo/Ari Bowo Sucipto)

On outsourcing, Prabowo plans to gather hundreds of business and labor union leaders at the Bogor Palace soon. 

“We want to get rid of outsourcing as soon as possible,” Prabowo said -- a promise that saw the loudest cheers that day.

“But at the same time, we must be realistic and pay attention to the investors’ interests. If they don’t invest, there won’t be factories and you will not be able to work. That’s why we have to work with them [investors]. ... We will sit together [in Bogor]. I will tell these businessmen that they can’t get rich alone and not invite the workers to live better lives,” he added.

Prabowo’s remarks did not address the ageist hiring concerns. Even so, the ex-defense minister promised that Indonesian lawmakers would begin drafting a bill on domestic workers next week. Prabowo wants this law, which will protect millions of Indonesian domestic helpers, to be ready in no more than 3 months.

Reports revealed that not only did Indonesian domestic helpers get paid little, but these workers had to cope with inhumane working hours and ill treatment from their employers. Prabowo also promised a similar law to protect ship crew members and fishermen, although he did not give a specific timeline in the document. 

Only a day has passed since Prabowo addressed Indonesian workers, be it those at the National Monument or the people watching the televised speech at home. We will learn sooner or later whether Prabowo will walk the talk.

Can Indonesia Provide A Better Life for Its Workers?
President Prabowo Subianto throws his cap at a crowd of workers during a May Day rally in Monas, Jakarta, on May 1, 2025. (Antara Photo/Muhammad Adimaja)

B-Universe reporters Zhulfakar and Hendro Dahlan Situmorang also contributed to the story.

Tags: Keywords:
SHARE

Related Articles


News Jun 2, 2026 | 9:43 am

Prabowo’s Overseas Trips Deliver Results, Not Ceremony, Says Cabinet Secretary

Cabinet Secretary Teddy says Prabowo’s overseas trips have secured investment, defense cooperation, and key diplomatic gains.
News Jun 1, 2026 | 4:51 pm

Prabowo Warns of Resistance to Indonesia’s Economic Transformation

Prabowo vowed to fight corruption and smuggling, saying economic reforms must ensure Indonesia’s wealth benefits its people.
News Jun 1, 2026 | 11:59 am

Prabowo Leads Final Farewell to Former Defense Minister Ryamizard Ryacudu

President Prabowo paid final respects to former defense minister Ryamizard Ryacudu, who was buried with military honors.
News May 30, 2026 | 11:46 am

Prabowo Returns to Jakarta with $3.5 Billion French Deals

These French commercial deals cover the trade, energy security, and defense sectors, although not much is known about the details.
News May 29, 2026 | 3:42 pm

‘Bonjour, Monsieur’: Prabowo Wants Indonesian Schools to Teach French

This is not the first time for Prabowo to announce his plans to include foreign languages in Indonesia's curriculum.
News May 29, 2026 | 1:00 pm

France, Indonesia Mustn't Rely on Major Powers for Minerals: Macron

Macron told Prabowo that Indonesia and France must not work together to avoid relying on major powers for minerals and raw materials.
News May 28, 2026 | 10:43 am

Indonesia’s Top Clerics Defend Prabowo’s Use of State Funds for Eid Sacrifices

MUI said President Prabowo Subianto’s use of state funds to buy sacrificial cattle for Eid al-Adha complies with Islamic law.
News May 26, 2026 | 6:23 pm

Prabowo Lands in Paris After Receiving New Rafale Jets

This also means Prabowo will be celebrating Eid al-Adha in Paris.
Opinion May 25, 2026 | 12:54 pm

Indonesia’s ‘Many Friends’ Doctrine Is More Selective Than It Appears

Indonesia’s “many friends” foreign policy under Prabowo appears increasingly selective, prioritizing strategic and economic partners.
News May 22, 2026 | 9:14 am

Prabowo’s Military Modernization Plan Faces Economic Reality Check

Indonesia’s military modernization faces challenges related to interoperability and a weakening currency.

The Latest


Special Updates 41 minutes ago

Pegadaian Debuts Overseas with First Timor-Leste Branch

Pegadaian opened its first overseas branch in Timor-Leste, recording over 600 transactions and $329,882 in financing.
Business 1 hours ago

Bank Indonesia Pushes De-Dollarization Efforts as Rupiah Nears Rp 18,000 Per Dollar

Bank Indonesia is expanding local currency settlement cooperation as the rupiah weakens toward Rp 18,000 per dollar.
News 2 hours ago

Indonesia Urges Hajj Pilgrims to Stop Packing Holy Zamzam Water in Their Luggage

Saudi authorities intensified inspections of Indonesian pilgrims' luggage after repeated discoveries of holy zamzam water hidden in baggage.
Business 2 hours ago

JCI Hits 2026 Low as Rupiah Slides Past 17,900, Moody’s Flags Danantara Unit

JCI sank 4.11% to its lowest level this year as the rupiah hit a record low and Moody’s outlook on a Danantara unit rattled investors.
News 3 hours ago

Indonesia to Receive Garibaldi Carrier This Year, Braces for Hormuz Delays

Rome wants to donate a decades-old aircraft carrier to Indonesia to avoid costly dismantling.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED