The issue of wage equality between male and female workers remains a significant challenge for Indonesia’s new government. Despite various efforts to address gender inequality in the workforce, field realities show that this disparity persists. Indonesia continues to face a substantial gender pay gap, where female workers tend to earn lower wages than their male counterparts, even when holding similar positions and performing similar workloads.
This presents a major challenge for the current administration, as gender-based wage inequality remains a serious and unresolved issue. The government must be urged to address the wage gap between men and women, which remains significant. Recent data from Indonesia’s Central Statistics Agency (BPS) and the International Labour Organization (ILO) reveal disparities that affect workplace equity, well-being, and broader efforts to economically empower women.
According to the latest BPS report, wage disparities between men and women in Indonesia are still evident. Men, on average, earn higher wages than women across nearly all employment sectors. This disparity stems from several factors, including differences in job types, social roles, and entrenched gender stereotypes within society. For instance, in the informal sector, female workers generally receive lower wages than their male counterparts, even when performing equivalent work.
Moreover, BPS noted that women often occupy low-paying jobs. Even in the formal sector, wage disparities remain apparent. In sectors dominated by female workers, such as education and healthcare, average wages are typically lower than in male-dominated sectors like construction and information technology. Yet women’s contributions in these sectors are vital to supporting Indonesia’s economy.
ILO data confirms that gender-based wage inequality is not just a local issue but a global one. Worldwide, women tend to earn about 20% less than men. In Indonesia, the ILO highlights that the gap can be even wider in certain sectors. It also notes that female workers are often confined to part-time or informal jobs with less labor protection.
Furthermore, the ILO suggests that addressing this gap requires more progressive policy interventions, such as incentives for companies implementing gender-equal policies, enhanced protection for female workers in the informal sector, and improved access to training and skill development programs for women. Such policies, already implemented successfully in several countries, have proven effective in narrowing wage gaps.
According to the Global Gender Gap Report 2024 published by the World Economic Forum, Indonesia ranked 100th out of 146 countries in gender equality, scoring 68.6%. This ranking dropped compared to 2023, when Indonesia ranked 87th with a score of 69.7%. This decline underscores the persistent challenges Indonesia faces in improving gender equality.
In terms of economic participation and opportunity, Indonesia ranked 89th in 2024 with a score of 66.7%. This indicator reflects disparities in labor force participation, access to quality employment, and wage equality between men and women. Despite progress in some sectors, the wage gap and the dominance of men in managerial positions highlight the need for more decisive and effective policies to achieve better equality.
Women’s earnings in Indonesia are generally much lower than men’s. According to the World Economic Forum, in 2024, women’s income in Indonesia was estimated to be only half that of men’s income. In 2023, for every dollar earned by a man, a woman earned only 51.9 cents, illustrating the stark and persistent inequality still present in Indonesia’s workforce.
This issue becomes even more critical under the Prabowo-Gibran administration, given the public’s expectations for labor sector reforms. The public anticipates that the new cabinet will implement policies to reduce gender-based economic disparities and improve the welfare of female workers, especially in male-dominated sectors.
The Indonesian government faces significant tasks to ensure gender-based wage equality. First, it must strengthen regulations on minimum wages to eliminate gender-based discrepancies. Second, it must expand training programs and skill development initiatives tailored specifically for women, granting them better access to higher-paying jobs.
Additionally, the government could provide incentives for companies committed to wage equality and impose sanctions on companies found guilty of gender-based discrimination. Public awareness of the importance of gender equality in employment must also be promoted through campaigns and educational initiatives.
Gender-based wage inequality in Indonesia demands greater attention. The data demonstrate that this issue remains unresolved, and efforts by the government and relevant stakeholders must continue to ensure that women’s labor rights are upheld. With appropriate policies, it is hoped that this disparity will diminish, enabling Indonesian women to contribute fully to the economy without facing unjust wage discrimination.
