In the last two decades, Indonesia has experienced a rapid economic and
social transformation that has affected the structure of the labor force and supply
behavior as well as labor demand. Particularly in the last 8 years, 1989 to 1996,
the country’s economy has been one of the fastest growing economies in Asia
with an average real growth of more than six percent annually. This performance has delivered the country from the position of one of the low-income countries to
being one of the middle-income countries. However, this fantastic performance
was interrupted by an economic and banking crisis that occurred on the onset
1997.