Labor-Intensive Industries Absorb 8.41% of Total Workers in Indonesia

Demographics

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Erlina Fury Santika 10/04/2025 19:10 WIB

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Based on data from BPS processed by the Coordinating Ministry for the Economy, labor-intensive industries absorb 8.41% of the total workforce in Indonesia. The food and beverage sector has the highest

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The Coordinating Ministry for Economic Affairs (Kemenko Perekonomian) states that labor-intensive industries are significant contributors to Indonesia's economy, accounting for 8.33% of its Gross Domestic Product (GDP).

These industries also employ 12.2 million workers, representing 8.41% of the total working population. Kemenko Perekonomian further details the employment figures by sector, using data from the Central Bureau of Statistics (BPS) in a report published in April 2025.

The food and beverage sector employs the most workers, with 6.3 million. This is followed by the textile and ready-made garment sector with 4 million; the leather, leather goods, and footwear sector with 950,000; and finally, the furniture sector with 882,000.

(Read also: 18,000 Workers Laid Off Until February 2025, Central Java Highest)

Kemenko Perekonomian also outlined several strategies and policies to strengthen labor-intensive industries through the formation of a task force.

These steps include revising the Manpower Law to encourage ease of investment and develop labor-intensive industries; deregulation through easier access to raw materials and evaluating non-tariff measures. Previously, 75% of Indonesian imports were raw materials, yet 70% of the value of these imports faced various restrictions, the highest in ASEAN. Import licensing processes took up to 200 hours, compared to only 50 hours in Malaysia.

The government also aims to facilitate these industries through machinery revitalization by providing access to affordable productive credit; developing and improving market access through increased international cooperation, for example, through BRICS.

(Read also: List of Indonesian Goods Most Affected by Rupiah Weakening)

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."