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Indonesia


  • 6-October-2023

    English

    Transitions to and from formal employment and income dynamics - Evidence from developing economies

    Using panel data for Indonesia, Malawi, Peru and South Africa, this paper investigates the relationship between transitions to formal employment and workers’ labour income. It shows that transiting from informal to formal employment increases the probability of improving workers’ labour income in both absolute and relative terms. However, income gains from formalisation do not accrue to all workers equally. Switching to formal employment has the greatest potential to improve the labour income of the richest workers. The chances of improving the labour income of the poorest workers through formalisation are slim. Transitions between formal and informal employment affect income gains and losses differently for men and women, older and younger workers, and workers with different levels of schooling. The effects of labour market transitions on income changes are considerably greater in magnitude than other life events such as a births, separation, or death of a partner or spouse.
  • 2-March-2021

    English

    Towards a Skills Strategy for Southeast Asia - Skills for Post-COVID Recovery and Growth

    Skills are central to the capacity of countries and people to thrive in a rapidly changing world. Recovering from the COVID-19 pandemic will require countries to co-ordinate interventions to help recent graduates find jobs, reactivate the skills of displaced workers and use skills effectively in workplaces. Megatrends such as globalisation, climate change, technological progress and demographic change will continue to reshape work and society. Countries should take action now to develop and use more effectively the skills required for the world of the future and at the same time make their skills systems more resilient and adaptable in the context of change and uncertainty. The OECD Skills Strategy provides countries with a strategic approach to assess their skills challenges and opportunities. The foundation of this approach is the OECD Skills Strategy framework allowing countries to explore how they can improve i) developing relevant skills, ii) using skills effectively, and iii) strengthening the governance of the skills system. This report applies the OECD Skills Strategy framework to Southeast Asia, providing an overview of the region’s skills challenges and opportunities in the context of COVID-19 and megatrends, and identifying good practices for improving skills outcomes. This report lays the foundation for a more fully elaborated Skills Strategy for Southeast Asia.
  • 7-October-2020

    English

    Employment and Skills Strategies in Indonesia

    This report comes at a time when policy makers are challenged by the COVID-19 crisis that is generating a profound reflection on economic and social well-being. Before COVID-19 hit, Indonesia had experienced remarkable economic growth, making substantial progress in poverty reduction and gains in employment. However, there are large differences in outcomes across Indonesian provinces, which often reflect the quality of local infrastructure, services, education, and jobs. This joint Asian Development Bank (ADB) and Organisation for Economic Co-operation and Development (OECD) study sheds light on challenges and opportunities to promote employment and skills outcomes at the local level in Indonesia. The analysis presented in this OECD/ADB report shows the importance of strengthening local institutions managing and delivering employment and skills policies.
  • 15-November-2019

    English

    The Survey of Adult Skills - Reader’s Companion, Third Edition

    This edition of the Reader’s Companion accompanies Skills Matter: Additional Results from the Survey of Adult Skills that reports the results from the 39 countries and regions that participated in the 3 rounds of data collection in the first cycle of PIAAC, with a particular focus on the 6 countries that participated in the third round of the study (Ecuador, Hungary, Kazakhstan, Mexico, Peru and the United States). It describes the design and methodology of the survey and its relationship to other international assessments of young students and adults. The Survey of Adult Skills, a product of the OECD Programme for the International Assessment of Adult Competencies (PIAAC), was designed to provide insights into the availability of some key skills in society and how they are used at work and at home. The first survey of its kind, it directly measures proficiency in several information-processing skills – namely literacy, numeracy and problem solving in technology-rich environments.
  • 15-November-2019

    English

    Skills Matter - Additional Results from the Survey of Adult Skills

    In the wake of the technological revolution that began in the last decades of the 20th century, labour-market demand for information-processing and other high-level cognitive and interpersonal skills have been growing substantially. Based on the results from the 33 countries and regions that participated in the 1st and 2nd round of the Survey of Adult Skills in 2011-12 and in 2014-15, this report describes adults’ proficiency in three information-processing skills, and examines how proficiency is related to labour-market and social outcomes. It also places special emphasis on the results from the 3rd and final round of the first cycle of PIAAC in 2017-18, which included 6 countries (Ecuador, Hungary, Kazakhstan, Mexico, Peru and the United States). The Survey of Adult Skills, a product of the OECD Programme for the International Assessment of Adult Competencies (PIAAC), was designed to provide insights into the availability of some of these key skills in society and how they are used at work and at home. The first survey of its kind, it directly measures proficiency in three information-processing skills: literacy, numeracy and problem-solving in technology-rich environments.
  • 10-October-2018

    English

    SME and Entrepreneurship Policy in Indonesia 2018

    SMEs play an important role for economic growth and social inclusion in Indonesia. Based on data from the Ministry of Co-operatives and SMEs, Indonesian SMEs account for nearly 97% of domestic employment and for 56% of total business investment. Indonesia has a Micro, Small and Medium Enterprise (MSME) Law and a specific ministry dedicated to co-operatives and SMEs. The wealth of public programmes for SMEs could be streamlined, and more could be done to support innovative companies able to generate productive jobs and participate in international markets. The development and implementation of an SME strategy would be instrumental to improve the overall coherence of national policy measures, objectives and measurable targets. The review of SME and entrepreneurship policy of Indonesia is part of a peer-reviewed series, by the OECD Working Party on SMEs and Entrepreneurship, which aims to improve the design, implementation and effectiveness of national SME and entrepreneurship policies.
  • 31-October-2016

    English, PDF, 369kb

    Indonesia Policy Brief: Enhancing Job Quality

    Sustained growth and job creation have helped increase Indonesian living standards significantly, but the quality of available jobs remains low, which is a major drag on well-being. In particular, a high incidence of informal jobs in Indonesia means that a large number of workers face the risk of persistent poverty.

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  • 25-March-2015

    English

    Education in Indonesia - Rising to the Challenge

    Having made impressive progress in widening access to basic education, Indonesia must now consolidate these gains and develop an education system that will support better the needs of a rapidly emerging economy in its transition towards high-income status. This report provides guidance on how Indonesia can rise to this challenge. It highlights three main policy directions which, pursued together, would help Indonesia advance on the path towards stronger growth and more inclusive and sustainable development. The first priority is to raise the quality of education and ensure that all learners acquire the skills they need to succeed in life and work. The second goal is to widen participation, requiring a concerted effort to improve access for disadvantaged groups and expand provision beyond the basic level. The final challenge is to increase efficiency, with a more data-driven approach to resource allocation, better tailoring of provision to local needs, and stronger performance management.
  • 1-March-2013

    English

    Southeast Asian Economic Outlook 2013 - With Perspectives on China and India

    This edition of the Southeast Asian Economic Outlook examines medium-term growth prospects, recent macroeconomic policy challenges, and structural challenges including human capital, infrastructure and SME development.  It also looks at economic disparities 'between' and 'within' countries in the region.  It provides coverage for Brunei, Cambodia, China, India, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Viet Nam. While solid growth is forecast to continue until 2017, countries must address structural issues in order to sustain this favourable outlook. Narrowing development gaps presents one of the region’s most important challenges.
  • 14-December-2010

    English

    Does fiscal decentralisation strengthen social capital? Cross-country evidence and the experiences of Brazil and Indonesia

    This paper tests the hypothesis that, by giving people more voice in the government decision-making process, fiscal decentralisation fosters social capital, measured in terms of interpersonal trust.

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