Indonesia and COVID-19: Impact on the private sector

The aim of this report is to provide insights for employers concerning the immediate impact of the crisis on the private sector. These findings will assist employers looking to better support their workforce during the next stage of the crisis period. It should be noted, that the medium-term and long-term impacts of the pandemic will not necessarily show the same patterns as the ones presented in this report and ongoing research into the impact of the COVID-19 crisis will be required to inform employers’ ongoing response and business planning.

Key Points

• The COVID-19 pandemic lockdown had an immediate and negative impact on private sector employers and employees in Indonesia.
• Employees report experiencing significant pressures on their financial security with almost half having either their hours of work reduced or their pay cut.
• Pressure on domestic life has also escalated, more so for men than women.
• The intensification of unpaid domestic care and household work is reported to have a strong negative impact on both men and women’s mental health, although for different reasons.

Table of Contents

• Introduction
• Section 1. Impact on Work
  • Employment change by industry & gender
  • Changes in hours, income and location
  • Productivity
  • Employer response
• Section 2. Impact on Households
  • Domestic and income pressures
  • Household work and care
• Section 3. Impact on Health and Wellbeing
  • Physical health
  • Mental health
• Section 4. Employer Perspectives
  • Impact on business
  • Business challenges and responses
  • Business opportunities
• Conclusion
• Appendix

Learn about the impact of COVID-19 on the private sector in Vietnam, Myanmar and the Philippines.