INDONESIA is facing a concerning trend where 8.2% of workers have taken on side jobs to make ends meet, highlighting the financial struggles faced by low-income individuals.
According to a study by the LPEM Faculty of Economics and Business at the University of Indonesia, this phenomenon is more prevalent in urban areas, with 11.5 million workers engaging in secondary jobs compared to 7.8 million in rural areas.
The median salary of workers without side jobs is IDR 2.2 million, while those with side jobs earn a significantly lower median salary of IDR 1.6 million from their primary occupation.
This stark contrast underscores the financial difficulties faced by low-income workers, who are forced to take on additional work to supplement their income.
An urgency for survival
For many workers, side jobs are not a choice or a lifestyle but a necessity. These individuals are not seeking to enhance their skills or pursue their passions but are instead trying to survive. The prevalence of side jobs among low-income workers indicates that their primary income is insufficient to cover their living expenses, raising concerns about the overall state of the economy and the well-being of Indonesian workers.
The Indonesian labor market faces several challenges, including:
a. Lack of Skilled Workers: A shortage of skilled workers in diverse fields such as engineering, information technology, and healthcare
b. Informal Employment: A large proportion of the workforce is engaged in the informal sector, which offers little to no social protection, job security, or fair wages.
c. Gender Inequality: Women face multiple barriers in accessing and participating in the labor market, including discrimination in terms of pay, promotion opportunities, and career advancement.
Meanwhile, Indonesian government has launched the Economic Package 2025 program, worth IDR 16.23 trillion, which includes measures such as:
- Internships: Providing opportunities for workers to gain skills and experience
- Food Assistance: Supporting low-income individuals with basic necessities
- Subsidy Support: Offering financial assistance to vulnerable populations
- Infrastructure Development Projects: Investing in infrastructure to stimulate economic growth.
The success of economic programs like Economic Package 2025 relies heavily on transparency and accountability. When the public perceives a lack of transparency in government decision-making and policy implementation, trust in the government’s ability to address economic issues is eroded.
The phenomenon of Indonesian workers taking on side jobs to make ends meet highlights the struggles faced by low-income individuals in the country.
To address this issue, the government needs to prioritize investing in education and skill development, bridging the gap between education and industry, formalizing the informal economy, and promoting gender equality. But the effectiveness of this program also depends on various factors, including the political climate and the rule of law.
