Trends in the Recruitment and Job Placement Market in Indonesia, October-December 2023

＜Market Overview in Indonesia＞

On November 21st, Indonesia announced its provincial and city minimum wages for 2024, with November 30th revealing figures for individual prefectures and cities.

Notably, the Jakarta Special Region saw a 3.38% increase (to 5,067,318 Indonesian Rupiah), while Bekasi City and Karawang Province (key manufacturing hubs for Japanese companies) experienced increases of 3.59% (5,343,430 Indonesian Rupiah) and 1.58% (5,257,834 Indonesian Rupiah) respectively. 
 
These increases are smaller than last year's high 7% growth. However, a decade-long comparison reveals a significant cost burden for Japanese manufacturers: minimum wages have more than doubled in Jakarta (2.07x), Bekasi (2.19x), and Karawang (2.15x).

＜Local Hiring Trends among Companies in Indonesia＞

Many long-established Japanese manufacturers in Indonesia now face a wave of upcoming retirements among employees hired during their initial expansion in the 2010s. This has spurred active recruitment to fill these gaps, particularly seeking experienced candidates in their late 30s and 40s to replace departing senior staff.

Regarding Japanese national hires, companies are finding it increasingly difficult to secure replacements via expatriation from Japan. This has led to a growing trend of recruiting locally for high-level positions, including managers and presidents of local subsidiaries.

＜Job-Seeker Trends in Indonesia＞

Job seeker registration figures in Indonesia remain stable compared to the previous year. However, relaxed visa regulations within ASEAN are prompting job seekers from neighboring countries to expand their search to Indonesia. Additionally, the post-pandemic environment has seen an increase in Japanese residents seeking overseas job opportunities, either for the first time or returning to the ASEAN region.