According to a report by the Central Statistics Agency (BPS), in 2022 the average net salary for formal workers in Indonesia reached Rp3.07 million per month.
The sector with the highest average salary was the financial services and insurance sector, at Rp5.18 million per month.
Next was the information and communication sector at Rp5.04 million per month, followed by mining and quarrying at Rp4.8 million per month.
The sector with the lowest average salary was other services, at Rp1.84 million per month, significantly lower than the national average.
Jobs in the other services sector include computer repair, household goods repair, textile product cleaning, salon businesses, funeral services, pet care, and so on.
The average net salary for workers in the manufacturing industry was also lower than the national average, at Rp2.98 million per month.
However, throughout 2022, the manufacturing industry generated a gross domestic product (GDP) of Rp3.6 quadrillion, the largest compared to other sectors.
Salaries are even potentially decreasing this year. In March 2023, the Minister of Manpower (Menaker) Ida Fauziyah allowed several industries to cut workers' salaries by a maximum of 25%.
However, industries intending to cut their workers' salaries must meet the following criteria:
* Textile and ready-made garment industries, footwear industries, leather and leather goods industries, furniture industries, and children's toy industries;
* A minimum of 200 workers/laborers;
* The percentage of labor costs in production costs is at least 15%; and
* Production depends on order requests from the United States and European countries, proven by order request letters.