RI is in recession, almost 10 million people in Indonesia are unemployed!



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Jakarta, CNBC Indonesia – For the first time in 21 years since 1999, the Indonesian economy entered a recession. The unemployment rate has also increased due to the health crisis of the Covid-19 outbreak, whose impact extends to the pulse of the economy.

Thursday (11/5/2020) The Central Statistics Agency (BPS) announced sacred figures, namely, economic growth and the publication of the results of the National Labor Force Survey (SAKERNAS) at 11.00 WIB.

As predicted, Indonesia’s gross domestic product (GDP) growth is still in the contraction zone. In year with year (year-on-year) the size of the pie of the national economy fell by 3.49%.


The contraction that occurred was in fact less than in the second quarter of 2020, which reached minus 5.32% (year-on-year). However, the contraction for two consecutive quarters has shown that a recession is a bitter fate that Indonesia must accept.

The outbreak of Covid-19 in the country made the government decide to limit the movement of people through the PSBB in early April. The consequence is that the economy has slowed significantly.

PSBB and emergency shutdown globally, it has become a hammer that hits the economy both from the point of view of demand and production. The drop in demand has caused a drop in sales in the business world.

Production also declined to offset the drop in demand, especially for non-essential goods and services during the pandemic. Politics Work from home To avoid an increase in the cases of Covid-19 infection, they also decrease the operational capacity of the factory.

The implications are seen in the labor sector. The need for employees or workers decreases. The phenomenon of dismissed employees is also widespread, the reduction of working hours to the point of being dismissed (PHK).

BPS noted that the number of people working in August 2020 was 128.5 million out of a total of 138.2 million workers. The number of employed persons decreased 0.3 million compared to August of the previous year.

The number of people working full time (working at least 35 hours a week) in the country dropped significantly to 9.5 million people compared to August 2019. However, the number of people working full time partial for underemployed increased by 4.3 million and 4, respectively. 8 million people.

This phenomenon occurs in line with the company’s policies during the pandemic that implemented efficiency strategies that include cost efficiency for labor by regulating the working time of its employees.

The unemployment rate also increased by 2.7 million to 9.77 million people. This figure represents an increase of 2.89 million compared to February 2020 when the number of open unemployment was 6.88 million people.

The number of people with worker / employee / employee status also fell dramatically by 4.3 percentage points to 36.4% in August this year. The number of workers in the industrial sector experienced the deepest contraction with a contraction of 1.3 percentage points due to the decrease in production capacity.

Meanwhile, for the agricultural sector, the number of workers actually increased compared to August last year in line with changing harvests and the absorption of more workers.

The contribution of the agricultural sector to the active population reached 29.76% of the total and grew 2.23 percentage points.

With 9.77 million people in Indonesia who are unemployed, the open unemployment rate in Indonesia has also increased by 184 basis points or 1.84 percentage points compared to August 2019.

The TPT number is approaching two digits. Previously, a study by Bap recently predicted that due to the Covid-19 pandemic, the unemployment rate would reach 10.7 million, that is, 12.7 million people in 2021.

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