September 2, 2025 | 11:05 am
TEMPO.CO, Jakarta - Economist Roby Rushandie of The Prakarsa assesses that the recent protests, culminating in riots, reflect the fragile foundation of Indonesia's economic development. He mentions that although the government often boasts about poverty reduction data or economic growth, the reality on the ground shows a different situation. "The government's euphoria over the data achievement does not align with the people's situation. The recent tragedies have shown a gap between claims and reality," said Roby in a virtual press conference on Monday, September 1, 2025.
According to Roby, the employment situation in Indonesia is becoming more vulnerable. Over the past three years, the number of layoffs has increased significantly, while formal employment growth has stagnated.
January 2025 data shows that the number of informal labor force has increased to nearly 60 million people, or close to 60 percent of the total workforce. "The decrease in unemployment is mostly supported by the informal sector. However, jobs in this sector are generally not decent and lack protection," he said.
Roby cites the case of Affan Kurniawan, an online motorcycle taxi driver who was killed when a Police Mobile Brigade (Brimob) tactical vehicle ran over him during the riots in Jakarta. According to him, the incident highlights the vulnerability of informal workers who support the urban economy yet lack decent job security.
Prakarsa has previously researched the conditions of digital platform workers. Of the 213 respondents, 60 percent rely on online motorcycle taxi services for their primary source of income. However, 26 percent of them work more than 48 hours per week, exceeding the International Labour Organization (ILO) standard working hours.
He said that the income of precarious workers has also sharply declined. For example, the average daily income of online motorcycle taxi drivers was Rp309,000 in 2018-2019, but decreased to Rp175,000 post-pandemic. Social security protection is also minimal. Out of a total of 4.6 million platform workers, only 12 percent are registered with BPJS Kesehatan. "The ILO defines decent work as productive, fair-paying, safe, and with social protection. Unfortunately, the majority of informal workers in Indonesia do not meet these criteria."
Roby mentions that the growing number of informal workers is closely tied to the early stages of deindustrialization. Over the past ten years, the manufacturing industry's contribution has continued to decline, resulting in weaker workforce absorption in this sector.
According to Roby, the government needs to quickly change the development orientation so that it does not just chase growth figures, but also ensures the availability of decent jobs with strong social protection. "Almost all sectors are slowing in job creation. This crisis of decent jobs is rooted in the decline of the manufacturing industry, which should have been the driving force for creating formal employment," he said.
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