The Number of Informal Sector Workers Increases, Now Reaching 84 Million People

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Adi Ahdiat 21/06/2024 13:25 WIB

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Based on data from the Central Bureau of Statistics (BPS), the number of informal sector workers in Indonesia has continued to increase over the past five years.

Number and Proportion of Indonesian Workers in the Informal Sector (February 2019-February 2024)

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Number and Proportion of Indonesian Workers in the Informal Sector (February 2019-February 2024)

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Based on data from the Central Statistics Agency (BPS), the number of informal sector workers in Indonesia has increased over the past five years.

In February 2019, the number was 74.08 million people (57.27% of the total working population), and in February 2024, it rose to 84.13 million people (59.17% of the total working population).

Informal sector workers are those employed in business sectors not regulated by government regulations, such as labor laws, taxation, or rules related to employment protection and rights.

Some examples include street vendors, sidewalk vendors, warung (small shop) owners, and so on.

According to BPS data, those categorized as informal workers include self-employed individuals, those employing unpaid/casual laborers, independent workers, and unpaid family workers.

According to A. A. Gde Sutrisna WP from the Indonesian Planners Association (IAP) Bali, the informal sector has several strengths, such as:

* Resilience during crises;
* Provides employment for low-skilled individuals;
* Labor-intensive with relatively low wages;
* Simple products requiring no special skills for production.

However, this sector also has several weaknesses, such as:

* Limited capital;
* Limited market reach;
* Low business development;
* Low technology utilization;
* Vulnerability to extortion;
* Unregulated existence can detract from urban aesthetics.

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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The Number of Informal Sector Workers Increases, Now Reaching 84 Million People

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