Indonesian Informal Workers Reach 59.97 Percent: UI Economist

The Dean of Faculty of Economics and Business (FEB) Universitas Indonesia (UI) Teguh Dartanto said that informal sector workers in Indonesia reached 59.97 percent by February 2022. This figure increased compared to 2020 which reached 56.64 percent.

“Our informal sector (workers) are close to 60 percent. In my opinion, this is not good, because there are many complications from this share," he said at the T20 Task Force 5 Side Event in Jakarta, Wednesday, July 27, 2022.

The number of informal workers as much as 56.64 percent in 2020 has increased again to 59.62 percent in 2021 until finally reaching the highest level in February 2022, which is almost 60 percent. He explained that the increase in informal sector workers was a scarring effect of the COVID-19 pandemic on the workforce because most of those employed during COVID-19 went to the informal sector.

"So the informal share has been quietly increasing in 2021 and February 2022," he said.

According to Teguh Dartanto, the number of informal workers is not good because they still have minimal access to labor protection including low wages and very limited social security. What's more, the pandemic has caused around 5.4 million workers to leave BPJS Employment membership.