Indonesia
Indonesia had achieved remarkable success in
economic development until the economic crisis of 1997. As a result of
that crisis, the growth rate plunged to just 0.85% in 1999. During the
first quarter of 2002, however, GDP growth rebounded to 3.25%. The prolonged
economic crisis destroyed many local and foreign businesses and led to
the collapse of numerous banks and other financial institutions, all of
which has caused a significant increase in the unemployment rate. The
general situation in the labor market has been worsening even since, with
large-scale shifts in employment from the formal sector to the informal
sector. In the wake of the currency and financial crises, the government
of Indonesia sought assistance from the International Monetary Fund. As
a condition, the government adopted an IMF-designed Structural Adjustment
Program. The plan, predictably, has driven up interest rates, increased
the pace of privatization, cut government subsidies, and reduced national
economic sovereignty.
- To read a detailed labor market
analysis for Indonesia, download one of the following:
Adobe Acrobat [.pdf] [size 114 kb]
Microsoft Word [.doc] [size 133 kb]
Source:
CIRCLE-Indonesia -
Center for Industrial Relation Research and Labor Education
Jalan Gedung Hijau IV/ 17
Pondok Indah, Jakarta 12310-INDONESIA
Tel: +62.021.736.13.19
circle@cbn.net.id
Data posted: October 3, 2002.
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