Indonesian women made significant gains in recent years but there is still more to be accomplished. Women in Indonesia are often well educated but cultural expectations and economic and legal structures still prevent them from entering the workforce. The employment rate for Indonesian women is 55.5% while for their male counterparts it stands at 83.2%. Indonesian women’s economic empowerment needs improvement. Organizations like The Asia Foundation and U.N. Women are supporting empowering Indonesian women in the workplace.

Indonesian Women’s Participation in the Workforce

Women’s participation in the workplace revolves around cultural, structural and legal barriers. Indonesian culture expects women to stay at home to complete domestic and childcare responsibilities. Because of these cultural expectations, women are largely responsible for childcare. This means they cannot achieve their professional goals. If a mother does work, it is usually to only provide a side income for the household.

An analysis from the World Bank revealed that if Indonesia added another public preschool per 1,000 children, the participation of mothers in the workforce would rise 13%. Surprisingly, in Indonesia, more women are currently receiving tertiary education than men. Despite this, most Indonesian women still leave the labor market after marriage even though fertility rates have dropped. Women who work outside of the house after marriage still only participate mostly in informal labor.

Within the informal sector, women lack access to support systems that formal employment has. Despite more women working in the informal sector, the wage gap for women is 50%. In the formal sector, the wage gap for women is lower than in the informal sector but still concerningly high at 30%. Additionally, women often work in the retail, hospitality and apparel sectors. These are vulnerable sectors, meaning women have little job security, which leads to higher unemployment for women.

Lack of Legal Protection

Although Indonesia has progressive maternal rights regulations, other laws often restrict women from achieving economic empowerment. According to the World Bank’s “Women, Business and the Law 2021” report, there is no law that prohibits discrimination in access to credit based on gender. Additionally, the report states that daughters and wives do not have equal access to inheriting assets from their parents and husbands. These laws can prevent women from rising out of poverty by making it difficult for women to retain economic assets.

Indonesian Women in the Workplace

Expanding women’s involvement in the workplace is beneficial for Indonesia’s entire economy. Improving Indonesian women’s economic power and standing could potentially lead to large economic growth. By closing gender employment and wage gaps, productivity will increase and economic growth will accelerate. It is reported that if women’s labor participation in Indonesia increased by 25% by 2025, it would generate an extra $62 billion and boost Indonesia’s GDP by almost 3%. Improving women’s economic standing leads to better business performance and a better economy.

Improving Indonesian Women’s Economic Empowerment

The Asia Foundation and WeEmpowerAsia aid Indonesian women in the workplace. The Asia Foundation is a nonprofit that works in 18 Asian countries, including Indonesia, to improve lives across the continent. The Foundation’s Women’s Empowerment Program in Indonesia partners with local women and organizations to help Indonesian women achieve economic empowerment. It has provided microloans for 42 women’s groups that have more than 1,500 women members. The Asia Foundation and these loans help Indonesian women build confidence in their economic decisions. The Women’s Empowerment Program works by empowering Indonesian women to effectively advance their development and economic success.

WeEmpowerAsia is a U.N. Women’s program that works to increase the number of women in Asia working in the private sector. In Indonesia, WeEmpowerAsia hosts its WeRise workshop. During these workshops, women entrepreneurs and workers learn how to overcome gender-related hurdles. During its first workshop in early December 2020, 41 female entrepreneurs attended. The workshops help women become more confident and assertive in economic situations.

Looking Ahead

Indonesian women face hardships and barriers to employment and economic empowerment because of cultural expectations and structural barriers. Economic empowerment for women is important for Indonesia’s economy because it generates growth. Programs and initiatives are working toward empowering Indonesian women in the workplace to ensure a better and brighter future for them.

– Bailey Lamb
Photo: Flickr