18 April 2024

Trends in the Recruitment and Job Placement Market in Indonesia, January-March 2024

Trends in the Recruitment and Job Placement Market in Indonesia, January-March 2024

Indonesia: GDP Growth Rate in 2023 was 5.05%, and Growth is Expected to Exceed 5% in 2024

Number of job offers YOY:134%
Number of job openings YOY (past 3 years):

2021202220232024
Apr - JunJul - SepOct - DecJan - MarApr - JunJul - SepOct - DecJan - MarApr - JunJul - Sep10~12月Oct - Dec
97%83%107%138%101%61%129%85%148%64%117%122%

< Market Overview in Indonesia >

Positive economic news emerged from Indonesia in February when the Central Statistics Agency (BPS) announced a real GDP growth rate of 5.05% for 2023. This marks a continuation of the strong performance seen in 2022, with both years exceeding 5% growth. 

The recent presidential election, where Prabowo Subianto won on promises to maintain the policies of his predecessor Joko Widodo, further fuels optimism for Indonesia's economic prospects in 2024.  Subianto's victory was accompanied by the election of Gibran Rakabuming Raka, Widodo's eldest son, as the vice president.

< Local Hiring Trends among Companies in Indonesia >

The first quarter of 2024 witnessed a slowdown in corporate hiring activities compared to usual trends. This cautious approach can be attributed to the recent presidential election. Companies are likely waiting for a clearer picture of the new administration's policies before making significant changes to their hiring plans. The recruitment of Japanese workers also reflects this trend, with some companies extending interview processes or suspending hiring activities until the end of March.

While the overall pace of hiring slowed, specific sectors like IT and FMCG (consumer goods) continued to actively recruit new talent.  However, hiring in construction and related industries associated with the new capital city development remains cautious.

< Job-Seeker Trends in Indonesia >

Indonesian job seekers often use the religious bonus, legally mandated and typically paid in March, as a trigger to launch their job searches. This trend extends to Japanese job seekers residing in Japan, who view the end of the fiscal year as a prime window for job transitions, leading to a surge in activity during the first quarter.  

In contrast, Indonesian-based Japanese job seekers often wait to begin their search until after receiving their religious bonus, suggesting an increase in their numbers after March.  This year also saw a notable rise in university graduates entering the job market after their April graduation.

Toma Yamashita

JAC Recruitment Indonesia Associate Director
Toma Yamashita

■JAC Recruitment Indonesia Overview
https://www.jacgroup.com/en/locations/country/indonesia

■JAC Recruitment Indonesia Website
https://www.jac-recruitment.co.id/

【JAC Recruitment Asia: Job Listing Comparison Report (Previous Quarter and YOY)】

 Change from previous period(Oct-Dec)Year-on-year comparison
Singapore108%55%
Malaysia118%88%
Thailand108%68%
Indonesia122%134%
Vietnam86%97%
Korea76%57%
India110%96%
Japan(*)109%92%

*Recruitment Related to Overseas Operations of Japanese Companies
Note: The number of job openings in each Asian country may fluctuate due to deliberate strategies implemented by individual Asian companies (such as focusing on high-paying job openings or specialist positions). Therefore, changes in the number of job openings in each Asian country do not directly reflect the performance of each company.

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