Total age in years

Figure. % children in employment, 7-14 years age group, 2009 % in employmen nt 16 14 12 10 8 6 4 2 0 2.9 3.2 4.7 5.2 5.6 8.3 10.7 13.5 7 8 9 10 11 12 13 14 Total age in years 6.6 Almost 7% of 7-14 year-olds, 2.3 millionchildren in absolute terms, were in employment in 2009 Minimum age specified for light work = 13 years General minimum working age = 15 years

Figure. % children in employment, 7-14 years age group, 2009 % in employment 16 14 13.5 12 10.7 10 8.3 8 6.6 6 4.7 5.2 5.6 4 2.9 3.2 2 0 7 8 9 10 11 12 13 14 Total age in years Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009. Almost 600,000 children aged less than 10 years were already in employment in 2009

Figure. % children in employment, 7-14 years age group, 2009 % in employment 18 16 14 12 10 8 6 4 2 0 Female Male 7 8 9 10 11 12 13 14 age in years Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. % children in employment, 7-14 years age group, 2009 % in HH chores 90 80 Female 70 Male 60 50 40 30 20 10 0 7 8 9 10 11 12 13 14 age in years Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009. At age 14, almost twice as many girls as boys perform HH chores

percent Figure. % children in employment, 7-14 years age group, by region 10 9 8 7 6 5 4 3 2 1 0 1.1 2.1 4.0 4.2 Jakarta West Java Kalimantan Central and East Java Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009. 5.4 8.3 8.9 Sumatra Sulawesi Eastern Indonesia

Figure. % children in employment, 7-14 years age group, by residence percent 10 9 8.4 8 7 6 5 4 3 2 1 0 3.2 Urban Rural Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Changes children s involvement in employment, 10-14 years age group, 2007-2010 The overall decline masks a 5 slight rise during 2008-2009 coinciding with global economic crisis 4.5 4 percent 3.5 3 2.5 2 2007 2008 2009 2010 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey, 2010 (August), 2009 (August), 2008(August) and 2007(August).

Figure. Children s sector of employment, 7-14 years age group, 2009 Agriculture, 57.8 Manufact., 6.7 Service, 27. 1 Other, 8.4 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Children s status in employment, 7-14 years age group, 2009 Wage employment, 5.4 Non-waged family work, 89.1 Selfemployment, 5.5 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Children s sector of employment, 7-14 years age group, 2009 Agriculture Manufact. Domestic service Other service Other Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. No. children exposed to specific hazardous conditions, 2009 Dangerous objects Dust, steam Cold or extreme heat In water 165,831 Bear "heavy burden" 134,451 Noise or vibration 128,760 Fire, gas 115,943 In the basement 36,037 Chemicals 34,246 At height 32,612 Machinery/heavy equipment 31,467 Lack of ventilation 19,399 Too dark or closed workplace 8,572 Explosives 3,148 452,658 449,514 353,526 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009. Over 985,000children in absolute terms, or almost half of all children in employment, are exposed to hazardous conditions

Figure. Incidence of work-related disease and injury, 2009 0.400 incidence density 0.350 0.334 0.306 0.300 0.276 0.250 0.250 0.226 0.205 0.218 0.200 0.150 0.106 0.100 0.050 0.295 Younger children are at much greater risk of work-related illness and injury than their older counterparts 0.151 0.000 male female 5-12 13-14 15-17 agric. manuf. services yes no Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Incidence of work-related disease and injury, 2009 0.400 Children working within the family are at greater risk of work-related illness and injury than children working outside the family incidence den nsity 0.350 0.300 0.250 0.200 0.150 0.100 0.250 0.226 0.334 0.276 0.205 0.306 0.218 0.106 0.295 0.151 0.050 0.000 male female 5-12 13-14 15-17 agric. manuf. services yes no Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Children s age-specific school attendance rate by work status, 2009 percent 100 95 90 85 93 94 99 97 98 96 96 99 99 97 92 97 85 95 91 Children in employment Children not in employment 80 75 7 8 9 10 11 12 13 14 78 Primary Junior secondary Age in years/school level Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Out-of-school children, by age, 2009 Out of school children aged 10-14 years numbered almost one million in 2009 12 10 10.7 percent 8 6 4 2 6.1 3.0 2.1 1.2 1.4 3.6 6.1 0 7 8 9 10 11 12 13 14 age in years Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Out-of-school children, by education attainment, 2009 At least four years of schooling, 73.0 Less than four years of schooling, 27.0 One out of four out-school children, over 260,000 in absolute terms, has less than four years of schooling Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Child labour prevents children from acquiring the human capital necessary for gainful employment as young people In the face of poor youth employment prospects, parents may have little incentive to invest in their children s schooling, and instead send their children to work prematurely

Figure. Youth activity status, 15-24 years age group, 2009 38.7 27.5 10.4 Inactive and out of education 55.9 33.7 Inactive student 33.8 Active Female youth Male youth Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

percent Figure. Youth unemployment rate (% of active population), 2009 25 23 21 19 17 15 13 11 9 7 5 18.6 21.4 16.2 Total. Urban Rural. Male Female. 15-19 20-24.. Residence. Sex. Age range 17.9 19.7 23.9 15.4 Unemployment is notlimited to urban areas Fewer females are in the labour force, but they have a slightly higher risk of unemployment

Figure. Youth unemployment rate (% of active population), 2009, by region 30 27.4 25 perc cent 20 15 14.2 14.6 16.6 17.1 18.8 10 10.3 5 0 Eastern Indonesia Kalimantan Sulawesi Sumatra Central and East Java Jakarta West Java Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Unemployed youth by previous employment status, 2009 Previously employed, 2 3 In search of first job, 77 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Unemployed youth by by duration, 2009 Unemployed for at least 12 months, 52. 2 Unemployed for less than 12 months, 47. 8 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure.Youth and adult unemployment rates (% of employed population) 25 21.5 20 18.6 16.1 Youth (15-24 years) percent 15 10 Adults (25-64 years) 5 3.4 5.2 2.1 0 Total Urban Rural Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth underemployment rate (% of employed population), 2009 percent 50 40 30 31.7 44.7 31.6 31.8 40.2 27.1 20 15.5 10 0 Total. Urban Rural. Male Female. 15-19 20-24 Underemployment is especially pronounced in rural areas

Figure. Youth underemployment rate (% of employed population), by sector, 2009 70 60 50 60.1 Underemployment rate percent 40 30 20 10 13.2 12.0 20.2 21.6 20.7 0 Agriculture Manufacturing Construction Commerce Services Other Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth underemployment rate (% of employed population), by region, 2009 60 percent 50 40 30 Underemployment rate 31.2 40.3 37.1 43.3 50.7 20 16.7 10 6.6 0 Jakarta West Java Central and East Java Sumatra Kalimantan Sulawesi Eastern Indonesia Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth unemployment rate (% of active population), region percent 30 25 20 15 10 5 0 27.4 18.8 West Java Jakarta Central and East Java 17.1 16.6 14.6 14.2 Unemployment rate Figure. Youth underemployment rate (% of employed population), 2009 60 50.7 50 Underemployment rate 43.3 40.3 40 37.1 31.2 30 percent 20 16.7 10.3 Sumatra Sulawesi Kalimantan Eastern Indonesia Regions with highest unemployment are those with lowest levels of underemployment 10 0 6.6 Jakarta West Java Central and East JavaSumatra Kalimantan SulawesiEastern Indonesia Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Employment formality (% of employed persons) Formal, 44. 3 Informal, 55.7 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth and adults in informal employment (% of employed), by residence 70 60 50 55.7 60.9 Workers do notappear to transition out of informality as they grow older percent 40 30 20 10 youth workers aged 15-24 years adult workers aged 25-64 years Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth employed in informal sector (% of employed youth), by residence 80 percent 70 60 50 40 30 20 10 0 31.8 Urban 74.7 Rural % employed in informal sector Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth employed in informal sector (% of employed youth), by sector, 2009 percent 100 90 80 70 60 50 40 30 20 10 0 98.8 % employed in informal sector 59.4 44.7 44.4 29.8 27.3 Agriculture Manufacturing Construction Commerce Services Other(a) Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth employed in informal sector (% of employed youth), by region 90 percent 80 70 60 50 40 30 % employed in informal sector 39.5 53.8 66.6 61.8 68.7 81.7 20 10 0 19.8 Jakarta West Java Central and East Java Sumatra Kalimantan Sulawesi Eastern Indonesia Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth unemployment rate (% of active population) 30 percent 25 20 15 10 5 0 27.4 18.8 West Java Jakarta Central and East Java 17.1 16.6 Unemployment rate 14.6 14.2 10.3 Sumatra Sulawesi Kalimantan Eastern Indonesia Figure. Youth employed in formal sector (% of employed youth) percent 90 80 70 60 50 40 30 20 10 0 19.8 % in informal employment 39.5 53.8 Jakarta West Java Central and East Java 66.6 61.8 68.7 81.7 Sumatra Kalimantan Sulawesi Eastern Indonesia Regions with highest unemployment are those with lowest levels of informality

Figure. Educational attainment, non-student population aged 15-24 years Senior secondary, 33.4 Higher education, 3.5 No schooling, 1.4 Junior secondary, 29.1 Primary, 32.5 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Unemployment rate by education level, 2009 30 percent 25 20 15 Unemployment rate 17.3 26.2 24.2 10 12.0 5 0 2.3 No schooling Primary Junior secondary Senior secondary Higher education Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Unemployment rate by education level and age range, 2009 percent 25 20 15 10 5 Higher Senior Junior Primary No schooling 0 20-24 25-29 30-34 35-39 Age range Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure.Youth employed in informal sector (% of employed youth), by education level percent 100 90 80 70 60 50 40 30 20 10 0 96 74.2 59.7 % in informal sector employment 35.5 7 No schooling Primary Junior secondary Senior secondary Higher education Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

percent percent Figure. Unemployment rate by education level, 2009 30 25 20 15 10 5 0 2.3 Unemployment rate 12.0 17.3 26.2 24.2 No schooling Primary Junior secondary Senior secondary Higher education Figure. Youth employed in informal sector, by education level 100 90 80 70 60 50 40 30 20 10 0 96 % in informal sector employment 74.2 59.7 No schooling Primary Junior secondary Senior secondary Higher education 35.5 7 Unemploymentis main problem for better- educated, job qualilymain problem for less educated

Figure. Average wage (in Rupiah) of employed youth, by level of education attained 1,400,000 1,200,000 Average wages 1,240,352 Rupiah 1,000,000 800,000 976,863 600,000 595,962 642,788 721,708 400,000 200,000 0 No schooling Primary Junior secondary Senior secondary Higher education Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

percent Figure. Trends in aggregate labour market indicators, 2007-2010 55 50 50.6 48.6 45 48.4 47.4 40 35 36.7 33.6 34.8 30 31.8 25 2007 2008 2009 2010 20 15 22.6 19.7 19 18.6 10 Labour force participation (% pop.) Education participation (% pop.) Unemployment rate (% active) Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. An integrated response to child labour and youth employment problems

Policy goal/targets Rationale/relevance Expanded access to early childhood education (ECE) opportunities. A lack of early childhood education opportunities affects children s preparedness for formal schooling. Reducing inequality in school access Important income-based and regional inequalities in access remain at the junior and senior secondary education Increased school quality and relevance. School quality issues can affect the willingness of households to invest in their children s schooling as an alternative to child labour

Policy goal/targets Rationale/relevance Expanding second chance learning opportunities to compensatefor educational deprivation earlier in childhood. Second chance learning opportunities help compensate for the negative educational consequences of child labour

Policy goal/targets Rationale/relevance Expanded access to formal social protection. Experience from elsewhere particularly Latin America suggests that cash transfers schemes conditional on school attendance and removal from child labour represent a particularly promising route for protecting vulnerable households and for promoting schooling as an alternative to child labour.

Policy goal/targets Rationale/relevance Increasing awareness of the benefits of schooling, and the costs and risks associated with child labour. Mobilizing social actors in efforts against child labour Household decisions regarding schooling and child labour can be conditioned by inaccurate information, by a lack of information or by detrimental social norms. Social mobilisation is critical to engaging a broad range of social actors in efforts against child labour. Building political will for action against child labour A political commitment at all levels is needed to ensure that child labour reduction occupies a prominent place in the national development agenda and is accorded adequate budgetary resources.

1.

Policy goal/targets Rationale/relevance Addressing job-relevant skills constraints Deficiencies in terms of trained human capital, particularly for the technical professions, constitute a major constraint to successful transitions to decent work for young people.

Policy goal/targets Rationale/relevance Providing job search support to address the lack of job search skills and resources A difficult transition to the labour market in Indonesia is partly the result of the lack of both labour market information and job search skills.

Policy goal/targets Rationale/relevance Promoting youth entrepreneurship and self employment to address labour demand and firm start-up constraints Self-employment programmes hold the potential to improve employment outcomes for the large proportion of Indonesian young people currently unemployed, underemployed or in low productivity agricultural work.

Policy goal/targets Rationale/relevance Ensuring equal opportunities for female youth in the labour market Perceptions of appropriate gender roles, and of the division of responsibilities between men and women remain deeply rooted in many segments of society and continue to influence women s position and opportunities in the work force.

Figure. Children s sector of employment, 7-14 years age group, by sex, 2009 100% 90% 80% 22.6 Other 32.4 70% 3.3 60% 50% 10.7 Service 40% 30% 65.5 Manufacturing 48.7 20% 10% 0% Agriculture Male Female Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009. Girls are relatively more concentrated in services and manufacturing

Figure. Children s sector of employment, 7-14 years age group, by residence, 2009 100% 90% 80% 22.6 Other 70% 49.5 4.5 60% Service 50% 40% 30% 63.7 17.6 Manufacturing 20% 28.4 10% 0% Agriculture Rural Urban Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009. Services and manufacturing play a much greater role in urban areas

Figure. Probability of school attendance by working hours 0.3 Probability school atten ndance 0.25 0.2 0.15 0.1 0.05 0 1 8 16 23 30 38 45 weekly working hours Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia Child Labour Survey, 2009.

Figure. Status in employment (% of employed persons) Unpaid worker, 29.6 Selfemployed, 1 9 Salaried worker, 51.4 Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth activity status, 15-24 years age group, 2009 Inactive, 52.6% Active, 47.4% Only education, 33.7 Inactive & out-o ofeducation, 18..9 Employ. & educ., 2.5 Only employment, 36 6.1 Unemployed, 8.8 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth activty status, by residence 100% 90% 10 7.8 Unemployed 80% 70% 34.7 37.3 Only employment 60% 50% 40% 30% 20% 10% 0% 13.3 39.8 Urban 23.8 28.5 Rural Employment and education Inactive & out-ofeducation Only education Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Youth activty status, by sex 100% 90% 80% 60% 50% 40% 30% 20% 10% 0% 10.4 10 7.6 43.1 28.9 27.5 33.7 33.8 Male Female Unemployed 70% Only employment Employment and education Inactive & out-ofeducation Only education Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010

Figure. Unemployed rate by education level, 2009 30 percent 25 20 15 Unemployment rate 17.3 26.2 24.2 10 12.0 5 0 2.3 No schooling Primary Junior secondary Senior secondary Higher education Source : UCW calculations based on Statistics Indonesia (BPS), Indonesia National Labour Force Survey (Sakernas), August 2010