Skip to main content Accessibility help
×
Hostname: page-component-cd9895bd7-gxg78 Total loading time: 0 Render date: 2024-12-25T04:50:27.926Z Has data issue: false hasContentIssue false

11 - Globalisation and labour: the Indonesian experience

from PART 4 - The Human Face of Globalisation

Published online by Cambridge University Press:  08 June 2019

T. Yudo Wicaksono
Affiliation:
Lead Data Analyst, Palladium, Jakarta; and Research Associate, Presisi Indonesia, Jakarta
Chris Manning
Affiliation:
Honorary Associate Professor, Arndt-Corden Department of Economics, Crawford School of Public Policy, ANU College of Asia and the Pacific, Australian National University, Canberra
Get access

Summary

In the current digital era of rapid technological change, globalisation of labour markets deals with a much broader range of issues than simply the effects of international trade and investment on jobs. Historically a major concern of governments, international trade and investment played a major role in job creation across the globe until the global financial crisis of 2007–08. Since then, the links between computerisation and industrial development—or between cyber and physical systems—have intensified, leading to revolutionary changes in modes of service delivery (Baldwin 2016). These developments have changed the nature of the debate on the labour market consequences of globalisation in Indonesia.

The shift in focus away from the labour market effects of trade in goods is partly a result of the slowdown in world trade since the global finan¬cial crisis. This is likely to be exacerbated by the Trump administration's threat to turn its back on the multilateral and regional trading system that has evolved over the past half-century. In addition to the effects of trade, many countries are concerned about the impact of foreign investment on employment, the benefits and costs of international migration and, more generally, the effect of globalisation on inequality (IMF 2007; Helpman 2016). Analysts are increasingly debating the indirect effects of foreign trade and capital movements for the labour market, as well as the direct effects through migration to and from developing countries.

Indonesia became more wary of trade, capital and labour interactions with the world economy after the Asian financial crisis of 1997–98. Restrictions that slowed the growth in trade and investment accelerated during the second term of the Yudhoyono administration (2009–14), as the boom in resource industries peaked and then came to an end (Hill 2015). At the same time, online shopping and other internet-based services spread rapidly in Indonesia, as in the rest of the world. In the Indonesian case, local start-ups such as app-based transport provider Go-Jek have expanded quickly, usually by gaining an initial foothold in Jakarta before moving quickly to other major cities. In the process they have created new job opportunities, while also threatening old ones (Ford and Honan 2017; Pangestu and Dewi 2017).

Type
Chapter
Information
Indonesia in the New World
Globalisation, Nationalism and Sovereignty
, pp. 201 - 224
Publisher: ISEAS–Yusof Ishak Institute
Print publication year: 2018

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×