The Homeland Endowment: Indonesia’s Labor Force in Disruptive Nature
Indonesia is the fourth-largest populous country in the world, and treasure lot of skilled labor force, among 281,8 Million residents, 69,3% were a workforce or calculated 146, 6 Million workforce that ready to be employed for various sectors, as mentioned in the economic diversification, the utmost labor force penetrated three biggest sectors of GDP patron, it’s Agriculture sectors who imbibe 29,36% of the total labor force, Trade sectors who imbibe 18,93% of the total labor force, and Manufacturing industry who imbibe 13,58 of the total labor force.
Picture 1: Indonesia Labor Force Penetration February 2022-2023
The labor force itself is classified from the uneducated level (never goes to formal school) to the university level. Chronicled in the first semester and second semester of 2022, Agricultural sectors mostly permeated unfinished elementary school and elementary school background, supported by the vast amount of agricultural terrain tumescent Indonesia, Indonesia Bureau of Statistics (BPS) record Indonesia possesses 70 million Ha of Agricultural land area, align with the Ministry of Agriculture program sustainability and food security or food sovereignty.
Picture 2: Indonesia’s Labor by Education, First and Second Semester of 2022-2023
The Manufacturing industry permeated higher education than the agriculture and trade sectors, due to their high standard demand for the labor force, practically the manufacturing company needs specialized skills also with advanced research and development, the manufacturing industry act as a value adder to various sectors in example adding value to agriculture product by providing package and any innovation related to an agricultural product, or in mining and energy sectors manufacturing company could provide a downstream product such as lithium battery for electric vehicle. As the highest Indonesia’s GDP patron, the manufacturing industry contribute 17,48% of total Indonesia’s GDP of USD 188,64 Bn.
Notwithstanding, the manufacturing sectors contribute higher than the agriculture sector. The agriculture sector performs as the cultural heritage, especially in the rural area, these sectors provide livelihoods for millions of people in Indonesia, including farmers, and everyone involved in the agricultural sectors due to Agricultural sectors serves as the catalyst for rural development, Investment on agriculture infrastructure as mentioned the construction of water reservoir and irrigation. Also, agricultural sectors play a big role in ensuring food security, as the fourth largest populous country in the world, Indonesia’s agriculture assured that domestic consumption remains stable and affordable, meeting the dietary needs and reducing dependence on food imports.
Hebronstar Strategy Consultants
Afif Muhammad Adventure / Research Analyst
Sources :
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