ELASTISITAS KETENAGAKERJAAN DI SEKTOR MANUFAKTUR INDONESIA: BUKTI DARI INDUSTRI BESAR DAN MENENGAH
DOI:
https://doi.org/10.59134/jimat.v2i2.793Keywords:
employment elasticity, manufacturing industry, labor absorption, subsector analysisAbstract
This study analyzes employment elasticity in Indonesia’s large and medium manufacturing industries over the period 2008–2022. Despite the manufacturing sector’s significant contribution to national output, a persistent disconnect exists between output growth and labor absorption, raising concerns about the quality of industrial growth. This research aims to: (1) measure the level of employment elasticity across manufacturing subsectors; (2) identify and compare disparities in employment elasticity among subsectors; (3) evaluate the impact of labor policy changes, particularly the transition from Law No. 13/2003 to the Omnibus Law on Job Creation; (4) assess the quality of industrial growth using employment elasticity as a key indicator; and (5) formulate sector-specific policy implications. Using a quantitative approach with descriptive and longitudinal analysis, this study employs secondary data from Statistics Indonesia (BPS) on value added and employment across manufacturing subsectors classified under KBLI 2020. Employment elasticity is calculated as the ratio of employment growth to output growth. The findings reveal that aggregate employment elasticity remains inelastic (E < 1), indicating that output growth is not accompanied by proportional employment expansion. Significant heterogeneity exists across subsectors: labor-intensive subsectors such as apparel and footwear exhibit high elasticity, while capital-intensive subsectors such as chemicals, basic metals, and automotive show low elasticity. Labor policy reforms have contributed to increased labor market flexibility but have not substantially improved employment elasticity. The recovery period following the 2020 economic contraction was driven more by productivity gains than by employment expansion. These findings imply a risk of jobless growth, necessitating targeted policies that promote competitive labor-intensive industries and enhance workforce skills to achieve more inclusive industrial development.
References
Badriah, L. S., & Rahajuni, D. (2019). An analysis of input substitution elasticity in natural resource-based industry in indonesia. The application of ces function. Journal of Environmental Management and Tourism, 10(3), 680–686. https://doi.org/10.14505/jemt.v10.3(35).22
Bangun, W. (2020). Employee production factor in economic development (a study in Indonesia). Journal of Computational and Theoretical Nanoscience, 17(2–3), 859–863. https://doi.org/10.1166/jctn.2020.8731
Chetthamrongchai, P., & Jermsittiparsert, K. (2019). The mediating role of supply chain management practices in the relationship between manufacturing flexibility and manufacturing performance. Humanities and Social Sciences Reviews, 7(3), 728–735. https://doi.org/10.18510/hssr.2019.73104
Hartono, H., & Herman, R. T. (2019). A Study on Competitiveness of ICT Adoption and Entrepreneurship Orientation on SMEs in Indonesia. Proceedings of 2019 International Conference on Information Management and Technology, ICIMTech 2019, 53–57. https://doi.org/10.1109/ICIMTech.2019.8843738
Hasanah, S. F., Hartanto, W., Ani, H. M., & Kantun, S. (2020). An analysis of the economic base sector in the absorption of labors in Jember from 2013 to 2017. In S. null (Ed.), IOP Conference Series: Earth and Environmental Science (Vol. 485, Number 1). Institute of Physics Publishing. https://doi.org/10.1088/1755-1315/485/1/012122
Izzati, N. R. (2022). Deregulation in Job Creation Law: The Future of Indonesian Labor Law. Padjadjaran Jurnal Ilmu Hukum, 9(2), 191–209. https://doi.org/10.22304/pjih.v9n2.a3
Jandhana, I. B. M. P., Zagloel, T. M., & Nurcahyo, R. (2018). Resilient structure assessment using Cobb-Douglas production function: The case of the Indonesian metal industry. International Journal of Technology, 9(5), 1061–1071. https://doi.org/10.14716/ijtech.v9i5.1862
Meiryani, M., Suryanto, E. F., & Clydee, C. (2022). Technical Efficiency of Consumer Goods Manufacturing Industry in Indonesia during the Pandemic: Application of DEA Model. ACM International Conference Proceeding Series, 15–21. https://doi.org/10.1145/3537693.3537697
Mulyawan, F., Hajah, S. N., Anggraeni, R., Elvariani, L., Tasya, Y., & Rahmah, A. (2021). The Effect of Production Costs, Promotional Costs, Operational Costs, Sales Results, and Total Assets Turnover on Net Income in Indonesia Stock Exchange (Idx) Manufacturing Companies 2009 - 2016. Review of International Geographical Education Online, 11(5), 2417–2436. https://doi.org/10.48047/rigeo.11.05.142
Narjoko, D., & Putra, C. T. (2015). Industrialization, globalization, and labor market regime in Indonesia. Journal of the Asia Pacific Economy, 20(1), 57–76. https://doi.org/10.1080/13547860.2014.974321
Nurhayati, Y., Zahir, M. Z. M., & Komarudin, P. (2022). Investment in Indonesia After Constitutional Court’s Decision in the Review of Job Creation Law. Lentera Hukum, 9(3), 435–458. https://doi.org/10.19184/ejlh.v9i3.32368
Purnomo, R. A., Sarungu, J. J., Samudro, B. R., & Mulyaningsih, T. (2021). The Dynamics of Technology Adoption Readiness of Micro, Small, and Medium Enterprises and Affecting Characteristics: The Experience from Indonesia. Review of International Geographical Education Online, 11(3), 834–854. https://doi.org/10.33403/rigeo.800532
Sugiharti, L., Purwono, R., Primanthi, M. R., & Esquivias, M. A. (2019). Indonesia industrial productivity growth: Evidence of Re-industrialization or De-industrialization? Periodica Polytechnica Social and Management Sciences, 27(2), 108–118. https://doi.org/10.3311/PPso.12489
Sugiharti, L., Purwono, R., Primanthi, M. R., & Padilla, M. A. E. (2017). Indonesian productivity growth: Evidence from the manufacturing sector in Indonesia. Pertanika Journal of Social Sciences and Humanities, 25(November), 29–44.
Tadjoeddin, M. Z. (2016). Productivity, wages and employment: evidence from the Indonesia’s manufacturing sector. Journal of the Asia Pacific Economy, 21(4), 489–512. https://doi.org/10.1080/13547860.2016.1153227
Tadjoeddin, M. Z., Auwalin, I., & Chowdhury, A. (2017). Revitalising Indonesia’s Manufacturing. European Journal of East Asian Studies, 16(1), 124–153. https://doi.org/10.1163/15700615-01601003
Tambunan, T. T. H. (2016). Economic growth, labor market segmentation, and labor productivity: A story from Indonesia. In Handbook of Research on Unemployment and Labor Market Sustainability in the Era of Globalization (pp. 345–370). IGI Global. https://doi.org/10.4018/978-1-5225-2008-5.ch019
Tambunan, T. T. H. (2019). Economic growth, labor market segmentation, and labor productivity: A story from Indonesia. In Wealth Creation and Poverty Reduction: Breakthroughs in Research and Practice (pp. 225–249). IGI Global. https://doi.org/10.4018/978-1-7998-1207-4.ch013
Tjandraningsih, I. (2013). State-Sponsored Precarious Work in Indonesia. American Behavioral Scientist, 57(4), 403–419. https://doi.org/10.1177/0002764212466236
Yasin, M. Z. (2022). Technical Efficiency and Total Factor Productivity Growth of Indonesian Manufacturing Industry: Does Openness Matter? Studies in Microeconomics, 10(2), 195–224. https://doi.org/10.1177/23210222211024438
Yasin, M. Z., Esquivias, M. A., & Suyanto, S. (2021). Does Firm Size Matter? Evidence from Indonesian Manufacturing Firms. Economics Bulletin, 41(4), 2401–2417.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Sumanto, Oky Bisma Thama Putra, Fitri Aulia Yamlean
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
