Indonesian employees are reporting high job satisfaction, with 84% expressing contentment in their current roles.

The main factors behind this positive sentiment are fair compensation (86%) and meaningful work (82%), according to findings from PwC’s Global Hopes and Fears Survey of Indonesia.

These results highlight the critical role of equitable pay and engaging responsibilities in fostering a motivated and productive workforce.

Job satisfaction vs skill development aspirations

Despite their overall satisfaction, however, Indonesian employees are not resting on their laurels. Many recognise the shifting nature of work, with 48% believing that job requirements will evolve significantly over the next five years. This expectation fuels a strong desire for upskilling and career progression.

While 57% of employees cite internal learning opportunities as a compelling reason to stay with their current employer, a significant portion remains open to external opportunities that provide better avenues for skill development. This signals a workforce that values growth and is willing to move if their learning needs are not met.

Notably, 60% of Indonesian employees prioritise digital skills, reflecting an awareness of the increasing importance of technology in the workplace.

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Mobility driven by learning opportunities

The pursuit of career advancement and new skills could play a decisive role in workforce mobility. Although specific data on relocation for skill development is scarce, the strong emphasis on upskilling suggests that Indonesian workers may be open to moving if it helps them stay ahead in a rapidly changing job market.

Adding to this dynamic is Indonesia’s capital relocation from Jakarta to East Kalimantan, which has raised workforce concerns.

As businesses and government offices transition to the new capital, employees are weighing the impact of location changes on their career prospects. This shift underscores the broader influence of geography on employment decisions, particularly in a country as vast and diverse as Indonesia.

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The Indonesian labour market: trends and challenges

Indonesia’s labour market continues to expand, with steady employment across manufacturing, agriculture, and services.

Urbanisation plays a significant role in shaping employment trends, with major cities such as Jakarta, Surabaya, and Bandung serving as key economic hubs. However, despite this growth, challenges remain – particularly in underemployment and informal employment.

The informal sector, which accounts for roughly 58% of the workforce, presents a structural challenge. Jobs in this sector often lack job security, formal contracts, and adequate benefits, highlighting the need for policy reforms to improve working conditions.

Addressing these gaps will be crucial to ensuring that economic growth translates into long-term stability for workers.

With a workforce of over 142 million, Indonesia boasts the largest labour pool in Southeast Asia. The country is currently experiencing a “demographic bonus,” where the working-age population outnumbers the non-working population. This trend, expected to peak in 2045, presents both an opportunity and a challenge.

If managed well, it could drive economic expansion. However, without sufficient job creation, quality education, and economic equality measures, the nation risks missing out on the full potential of this demographic advantage.

Although the workforce is predominantly young, older employees still play a key role, comprising 15% of the labour force and bringing valuable experience and industry stability. Meanwhile, female participation has been on a steady rise, reaching 38% in 2023. However, gender disparities persist, particularly in leadership positions and traditionally male-dominated industries such as engineering and technology.

What’s ahead for Indonesian employers?

For business and HR leaders, these findings offer crucial insights. While Indonesian employees are largely satisfied with their jobs, they are also forward-thinking and proactive about their career growth.

Companies face the challenge of providing sufficient learning and development opportunities lest they risk losing talent to competitors that do.

Moreover, as Indonesia undergoes major economic and geographic shifts, businesses must remain agile. The relocation of the capital and the evolving skills landscape will require organisations to rethink talent strategies, ensuring that employees feel supported in both their career growth and broader workplace transitions.

To address these challenges head-on, employers are expected to build a more resilient and future-ready workforce.