Minister of Finance: Improvement in the workforce reflects the continued maintenance of the Indonesian economy

The average wage in general also increased to IDR 2.94 million from IDR 2.89 million in February 2022

Jakarta ( – Minister of Finance (Menkeu) Sri Mulyani said the improvement in labor market developments as of February 2023 reflects Indonesia’s continued economic performance.

The Central Statistics Agency (BPS) noted that the open unemployment rate (TPT) as of February 2023 had again decreased to 5.45 percent from the previous 5.83 percent in February 2022.

In addition, according to him, in his official statement in Jakarta, Friday, economic growth strengthened by 5.03 percent on an annual basis (year-on-year/yoy) in the first quarter of 2023 was able to create an additional 3.02 million jobs.

Sectorally, job openings occur in all sectors.

Additional employment in several main sectors, including agriculture by 50 thousand people, manufacturing by 160 thousand people, trade by 440 thousand people, and the tourism sector by 630 thousand people.

In line with the improvement in employment, the average wage in general also increased to IDR 2.94 million from IDR 2.89 million in February 2022.

Thus, Sri Mulyani asserted, greater job creation is an important factor that boosts people’s purchasing power and maintains the resilience of the domestic economy.

In the first quarter of this year, household consumption grew by 4.5 percent (yoy) or strengthened compared to growth in the first quarter of 2022 of 4.3 percent and grew positively by 0.2 percent compared to the previous quarter (quarter-to-quarter/qtq), succeeded in driving strong economic growth.

“This reflects the maintained strengthening of people’s purchasing power which is supported by price stability in the country and increasing people’s income in line with continuing job creation,” he explained.

In this way, he revealed that the increase in the domestic labor market illustrates a higher quality of economic growth, as reflected in the consistent decline in unemployment and poverty rates.

Nevertheless, the State Treasurer stressed that the government will continue to monitor the current risks to the world economy.

The International Monetary Fund (IMF) in its April 2023 report estimates that the global economy will slow down from 3.4 percent (yoy) in 2022 to 2.8 percent (yoy) in 2023.

Also read: BPS: Unemployment rate down 0.38 percent in February 2023
Also read: Ministry of Manpower: The Job Creation Law is an attempt by the government to suppress unemployment
Also read: Coordinating PMK Minister: The business and industrial sectors play a role in fighting unemployment

Reporter: Agatha Olivia Victoria
Editor: Click Dewanto


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