Number of workers in Indonesia 2023, by sector

In 2023, approximately 39.45 million people worked in the agricultural, forestry, hunting, and fisheries sector in Indonesia. As the economy of Indonesia has been highly dependent on agriculture, it is no surprise that this sector has been the largest employer for decades. Nevertheless, agricultural workers had the lowest average monthly salary in the archipelago.

From agriculture to manufacturing

Following the agricultural sector, wholesale and retail and manufacturing sectors were Indonesia’s largest employers. On the other hand, the electricity and gas, real estate, and waste management sectors accounted for Indonesia’s smallest workforce. Indonesia has aimed to be one of the largest manufacturing nations globally, and its number of manufacturing workers has grown steadily. As it has a labor force of 144 million people with abundant labor supply and relatively low cost, the country is a suitable production base for labor-intensive industries. In the past years, its focus has shifted from producing raw agricultural products to manufacturing processed food, apparel, and tobacco products.

Urban and rural differences for employees

While the highest average monthly net wage in Indonesia was around 4.82 million Indonesian rupiah, there was a difference between the salaries in the urban and rural areas. The difference between the highest salaries in the cities and the countryside reached more than two million Indonesian rupiah that year. Informal employment, open unemployment, skills shortages, and skills mismatches are ongoing issues in Indonesia’s labor market. Rural areas have higher rates of informal employment than cities and this employment is concentrated in the agriculture sector.