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Kajian Vol.10: Labour Economics – The Vulnerability of Fixed-Term Contract Workers in Indonesia

Ekonomi PublikEkonomika KependudukanEkonomika KetenagakerjaanKajianPenelitian Senin, 27 Oktober 2025

Authors:

Raniah Salsabila, Owen Alberto Liem, Nadya Zahra Prasetio, Nawfal Aulia, Qisha Quarina

Bidang Kajian Microeconomics Dashboard 2025


Executive Summary

  • In Indonesia, work agreements are divided into 2 (two), i.e. fixed-term contract (Perjanjian Kerja Waktu Tertentu/PKWT) and indefinite-term contract (Perjanjian Kerja Waktu Tidak Tertentu/PKWTT).
  • The implementing regulations for work agreements are contained in the Law No. 13/2003 on Employment, which was later amended through Law No. 11/2020 on Job Creation or the Omnibus Law, and Government Regulation No. 35/2021.
  • There are differences between the two work agreements, i.e. the length of service, nature of work, employment rights, and employment protection for workers.
  • Despite being eligible to the same social protection programs, fixed-term contract workers are prone to risks due to the limited nature of the work agreement, lack of labour regulations, restricted social program coverage, and susceptibility to income exploitation.
  • Specifically, only a small portion of PKWT workers are covered by employment insurance programs despite being eligible for the programs, indicating the mismatch between regulations and company policies.
  • Demographically, PKWT workers tend to be younger and less educated than the PKWTT workers.
  • The number of workers experiencing termination of employment has increased from year to year with PKWT workers being more vulnerable to termination of employment.
  • In addition, compared to the PKWTT workers, the PKWT workers have a higher percentage of no engagement in the labour union, implying that PKWT workers have a lower incidence of social dialogue in the labour market.
  • Lastly, most PKWT workers lie within the lower income deciles (within the 1st-5th decile), placing them in a financially vulnerable segment of society.
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    Hasil Penelitian Pelatihan Guru Ekonomi SMA

    Penelitian Sabtu, 14 Januari 2023

    Center for Microeconomics Research and Dashboard meluncurkan program kami bernama Sharing Sessions #8. Sharing Session #8 kali ini akan mengambil topik dengan judul “Pelatihan Guru” yang akan dilaksanakan pada:

    • Hari, Tanggal: Jumat, 25 November 2022
    • Pukul: 15.30 WIB – 17.00 WIB
    • Lokasi: Zoom Meeting

    Pemateri:

    • Opal
      (Mahasiswa Master of Health Economics di London School of Economics & S1 Economics UGM 2018)

    Moderator:

  • Anggita Utomo (Asisten Akademik Fakultas Ekonomika dan Bisnis Universitas Gadjah Mada)
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