Opening Remarks at the Indonesia Labour Market Outlook Interactive Discussion

By Francesco d'Ovidio, Director of ILO for Indonesia and Timor-Leste at the Opening of the Indonesia Labour Market Outlook Interactive Discussion

Statement | Jakarta, Indonesia | 15 September 2016
Selamat Siang bapak-bapak dan Ibu-Ibu sekalian.. sangat senang berada disini hari ini untuk acara spesial siaran radio Sonora mengenai paparan pangsa pasar kerja di Indonesia

Good afternoon ladies and gentlemen, happy to be here this afternoon for the special broadcast event with Sonora radio on Indonesia Labour Market Outlook 

As many of you may already know, employment is closely tied with economic growth, not only of the country but also regionally and globally. After a period of relatively rapid growth, we are now seeing a global slowdown. Lately, Indonesia’s growth has also shown signs of slowing down a bit which is no doubt will also impact the employment situation in the country.

Overall, in the last two decades Indonesia has made considerable progress across several socio-economic indicators. And, this happen in the midst of two economic crisis: one that hit mainly Asia in 1997 and the more recent one in 2008. Indonesian economy has shown resilience. And that is why unemployment rate has fallen significantly and at the moment it stands at 5.5 percent.

With the relatively large young population and to benefit from the demographic dividend, it is important to continue generating employment that is more productive and decent. And, as we all know, unemployment rate among young people is quite high (17.8 percent). I believe, by understanding the labour market better, therefore, can help policy makers to make informed decisions, and enact better policies and programmes.

The importance of understanding labour market also came up strongly, during a forum when we discussed the action plan for the Sustainable Development Goals (SDGs) No.8 on Decent Work and Economic Growth, with the government and our social partners. A sectoral-approach in analysing labour market information, and private sector contribution in identifying skills demand, for example, are crucial in bridging the skills gap between what is needed by the industry and what skills are available in the market.

We in ILO believe that close cooperation between the government, the private sectors and the worker is needed to ensure that we all work together. Sharing information, analysing it, and debating policy actions, I am sure, will help us to create more and better employment opportunities and help to eliminate poverty. This is one of the key goals of SDGs.

The ILO stands ready to facilitate and support its constituents: government, and social partners to enact policies and implement programmes, not only at the national level but also at the regional level. Indonesia is a huge country and that is why development efforts should focus both at the national and sub-national level.

I believe events such as the one we have organized with Sonora today can really help to understand labour market dynamics and policy implications better. It will also enable us to reach out to a wider audience, in a language that is easy to understand.

Hopefully, today’s discussion will contribute in raising more awareness among the public. I certainly hope that our collaboration with the media will continue in the future and more such events can be organized.

Lastly, I am looking forward to hearing the views of different eminent speakers that we have gathered here today. Also, I look forward to hearing contributions from the audience and those who are listening to this programme.

All the best!