Labor Costs & Productivity in Indonesia
What does manufacturing labor really cost in Indonesia? The answer comes down to two things this dataset reports monthly: the fully loaded cost of a worker — total wages and all non-wage costs combined into a single figure — and the Labor Productivity Factor, which captures how productively that laborer works. Industry Economics & Competitiveness gives you both for the Indonesia's manufacturing and construction sectors.
Indonesia's labor costs across chemical and manufacturing sectors remained relatively stable between 2020 and 2021, with modest year-over-year movements. Chemical plant supervisors commanded the highest hourly rates at $2.31 in 2021, up from $2.25 in 2020, while chemical plant operators earned $1.53 per hour in 2021 compared to $1.49 the previous year. Manufacturing labor and construction labor similarly showed minor increases, rising to $1.60 and $1.24 per hour respectively in 2021. Across the six-year period from 2016 to 2021, all labor categories demonstrated cumulative growth, with manufacturing labor posting the largest proportional gain at approximately 13 percent.
The figures shown are illustrative and represent a historical sample. For up-to-date monthly labor cost and productivity benchmarks in Indonesia — along with industrial costs and manufacturing competitiveness data across 33 countries — subscribe to Intratec Industry Economics & Competitiveness.
About the Labor Benchmarks. Each monthly release reports three categories of labor data for Indonesia: total employer cost (wages plus non-wage costs) for manufacturing and construction sectors, output per worker for the same sectors, and role-specific wages for chemical plant operators and supervisors at typical plant staffing levels. The same methodology produces comparable benchmarks for every country in the program, with a 10-year monthly history alongside the current values.
Beyond Labor Costs
Labor cost and productivity factors are part of the Industry Economics & Competitiveness subscription — a monthly program benchmarking commodities manufacturing competitiveness across 33 countries, including Indonesia.
33 Key Countries
Country-by-country monthly reports covering major industrial hubs — USA, China, Germany, Japan, Brazil, India, and more.
7 Industries Covered
Industry-specific rankings across olefins, aromatics, alcohols & organic acids, polymers, fertilizers, inorganic chemicals, and metals.
Reference Datasets
Country-level cost inputs for plant projects — labor costs, utility prices, construction indexes, and location factors.
Monthly Updates
Fresh data every month, always reflecting the most recent period available, with short-term forecasts on selected series.
Frequently Asked Questions
About Indonesia's Manufacturing Industry
Indonesia's economy is one of the largest in Southeast Asia, characterized by a diverse industrial base that plays a crucial role in both national and regional markets. The country is known for its rich natural resources and a growing manufacturing sector that includes industries such as textiles, automotive, electronics, and food processing. Manufacturing significantly contributes to Indonesia's GDP, driving employment and economic development.
The Indonesian manufacturing industry is recognized for its focus on quality production and expanding technological capabilities. With a young and adaptable workforce, along with increasing investments in infrastructure, Indonesia is becoming an attractive destination for both domestic and foreign investment. The automotive sector, in particular, has experienced notable growth, supported by rising demand and a developing supply chain.
As Indonesia addresses global economic trends, such as sustainability and digitalization, its manufacturing sector remains essential to its economic stability. The country is increasingly investing in green technologies and innovative practices, reinforcing its commitment to sustainable industrial development. With a focus on enhancing skills and fostering innovation, Indonesia is well-positioned to continue its journey as a key player in the global manufacturing arena for years to come.