Indonesia's Formal Sector Employment to Decrease in Early 2025

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Adi Ahdiat 19/05/2025 11:50 WIB

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According to BPS data, the proportion of Indonesian formal sector workers reached 40.6% in February 2025, a decrease from the previous year.

Number and Proportion of the Indonesian Working Population in the Formal Sector (February 2020-February 2025)

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Number and Proportion of the Indonesian Working Population in the Formal Sector (February 2020-February 2025)

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According to data from the Central Statistics Agency (BPS), in February 2025, the number of employed people in Indonesia reached 145.77 million.

Approximately 59.19 million people, or 40.60%, were categorized as formal workers.

The BPS defines formal workers as those who work with the assistance of permanent/paid laborers, as well as laborers/employees/staff.

The number of formal workers at the beginning of 2025 decreased compared to August 2024, although it remained slightly higher than in February of the previous year.

However, the proportion decreased compared to both August and February 2024, as shown in the graph.

This decrease in the proportion of formal workers coincided with an increase in informal workers.

The number of informal workers in February 2025 rose to 86.58 million, representing 59.40% of the total employed population in Indonesia.

"The increase in informality in the labor market indicates a deterioration in labor market quality," stated Mandiri Institute in its May 2025 *Market Lens-Labor Update* report.

"Structural problems in the labor market remain evident, such as the high number of educated unemployed, reflecting a mismatch in the labor market. Going forward, reindustrialization is key to improving the quality of Indonesia's labor market," it continued.

Editor : Adi Ahdiat

"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."

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Indonesia's Formal Sector Employment to Decrease in Early 2025

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Indonesia's Formal Sector Employment to Decrease in Early 2025

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