Thomas Rizal & Jayanty Nada Shofa, 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?
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.
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.
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.
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."
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.
[B-Universe reporters Zhulfakar and Hendro Dahlan Situmorang also contributed to the story.]
Source: https://jakartaglobe.id/news/can-indonesia-provide-a-better-life-for-its-worker