During the past two decades, Indonesia’s labor markets have been
characterized by a considerable degree of turbulence and structural change.
These developments were created by important shifts in the industrial and
occupational composition of employment, technological change in the work
places, corporate restructuring, and the continued globalization of economic
activity. Overall, labor market conditions in the nation have improved markedly
over the past ten years, although the problems of manpower are still alive,
disturbing the progress of development.
This paper is designed to provide an overview of key labor market
development in Indonesia in the past few years and to briefly assess the
development strategies, particularly in conjunction with the development of
training system and employment creation. The paper will conclude with brief
suggestions and discussion of human resources policies and programs.