Industrial Workers Trapped in Debt to Meet Basic Needs

Research by the Decent Living Coalition (Koalisi Hidup Layak or KHL), received by *Databoks*, shows that 76% of 257 respondents or informants, who are laborers, admitted to being in debt.

The most common reason for borrowing was to meet daily household needs, with a total of 143 responses.

Second was the purchase of work tools, such as motorcycles, sewing needles, masks, and others, with 65 responses.

Third, for children's education expenses, such as books, uniforms, study tours, and others, with 54 responses.

Fourth, debt for religious and social celebrations, with 28 responses.

Fifth, building or buying a house, with 25 responses.

(Read also: [Rising Layoff Trend in January-October 2024](https://databoks.katadata.co.id/ketenagakerjaan/statistik/6734220c90864/tren-phk-meningkat-pada-januari-oktober-2024))

The remaining reasons included healthcare costs, business or entrepreneurial activities, household transfers, savings or investments, and paying off other debts. Note that this survey used multiple-answer options, allowing respondents to select more than one answer.

The debt economy survey, conducted over a month and a half in August-September 2024, collected data from 257 informants in eight regions and six industrial sectors.

The eight regions were Tangerang City and Regency, Serang City (Banten); Sukabumi City and Regency (West Java); Sambas Regency (West Kalimantan); Morowali Regency (Central Sulawesi); Denpasar City (Bali); Brebes Regency and Jepara Regency (Central Java); and Sidoarjo Regency (East Java).

The participating industrial sectors were manufacturing (88 informants), gig economy/online transportation workers (80 informants), aviation (11 informants), plantations (30 informants), mining (37 informants), and fisheries (11 informants).

The research used a participatory action approach integrating quantitative and qualitative mixed methods.

The unit of analysis in this research was defined as working-class households. Sample selection was conducted using non-probability sampling with a snowball sampling method.

The research team explained that the snowball sampling method was chosen due to the lack of a reliable official sample frame. Therefore, this research also aims to identify the number of such hidden household populations.

The following are the reasons given by respondents or informants for taking out loans:

* Daily household needs: 143 responses
* Purchase of work tools (motorcycles, sewing needles, masks, etc.): 65 responses
* Children's education expenses (uniforms, books, tours, etc.): 54 responses
* Religious and social celebration expenses (Ramadan, Eid al-Fitr, Christmas, Waisak, weddings, funerals, circumcisions, etc.): 28 responses
* Building/buying a house: 25 responses
* Healthcare costs: 21 responses
* Business/entrepreneurial activities: 16 responses
* Household transfers: 8 responses
* Savings/investments: 6 responses
* Paying off other debts: 5 responses.

(Read also: [Unemployment Rates Across Indonesian Provinces in August 2024: West Java Highest](https://databoks.katadata.co.id/ketenagakerjaan/statistik/6734654257263/tingkat-pengangguran-seluruh-provinsi-ri-agustus-2024-jabar-tertinggi))