BRIEF DESCRIPTION OF THE COUNTRY'S RELATIONSHIP WITH SDG 8

As Southeast Asia’s largest economy and the world’s fourth most populous country, Indonesia plays a pivotal role in the global achievement of SDG 8 (World Bank, n.d.). The Indonesian government has repeatedly reaffirmed its commitment to the UN's 2030 Agenda through its Voluntary National Review process, identifying Decent Work and Economic Growth as one of its priority Sustainable Development Goals. As emphasised by the Indonesian Ministry of National Development Planning (IMNDP, 2025) in its latest Voluntary National Review submitted to the United Nations, the country is currently focusing on the gradual formalisation of the labour market by improving job quality and strengthening social protection systems, while also supporting emerging sectors operating in the green and digital economies (p. 8). 

CURRENT CHALLENGES AND RECENT DEVELOPMENTS

Indonesia’s greatest challenge in achieving SDG 8 remains the persistence of labour informality. Despite continued economic expansion, up to 60% of Indonesian workers remain employed in informal jobs, which typically offer lower wages, limited legal protection, and little or no access to social security benefits. Informality is particularly prevalent among firms in the agricultural and low-skilled service sectors, which often display lower productivity levels and tend to be concentrated in poorer provinces (Organisation for Economic Co-operation and Development, 2024, p. 44). From this perspective, reducing labour informality could significantly improve the productivity performance of the Indonesian economy, which has been rather weak over the past ten years compared to other countries in the region, thereby fostering stronger economic growth and development (Organisation for Economic Co-operation and Development, 2024, p. 42).

As stressed by the IMNDP (2025), national economic growth during the last few years was primarily driven by an increasing labour supply rather than increased labour productivity, with relatively unproductive economic sectors accounting for a significant proportion of the economy. Low labour productivity, limited innovation, and Indonesian firms' reluctance to adopt new technologies all hamper competitiveness and the creation of quality jobs (p. 78). 

Moreover, access to decent working arrangements is not evenly distributed across Indonesian regions. Rural and underdeveloped areas of the country lag significantly behind in business and work opportunities, trapping a large section of the workforce in precarious employment, particularly in the tourism sector  (IMNDP, 2025, p. 80). 

LIST OF REFERENCES AND USEFUL LINKS

Indonesian Ministry of National Development Planning. (2025). Indonesia VNR 2025 Voluntary National Review - Fostering Inclusive Growth: Advancing Sustainable and Resilient Indonesia. United Nations High-Level Political Forum on Sustainable Development. https://hlpf.un.org/sites/default/files/vnrs/2025/VNR%202025%20Indonesia%20Report_0.pdf

Organisation for Economic Co-operation and Development. (2024). OECD Economic Surveys: Indonesia 2024. https://doi.org/10.1787/de87555a-en

United Nations Department of Economic and Social Affairs. (n.d.). Country Profile: Indonesia. Retrieved September 7, 2026, from https://unstats.un.org/sdgs/dataportal/countryprofiles/idn

World Bank. (n.d.). Overview: Indonesia. Retrieved September 7, 2026, from https://www.worldbank.org/ext/en/country/indonesia#tab-about