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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kartini Day and Women's Role in the Economy

Kartini Day reminds us of the vital role of women in various aspects, and the economic sector is no exception. Indonesian women have become agents of change to create jobs and contribute to GDP. Data from the Ministry of Finance in 2021 noted that 54% of MSME owners are women, of which 97% of employees are employees.

For the Chairman of Kadin Indonesia, Arsjad Rasjid, women empowerment is important because when women have the opportunity to advance, all will advance faster together.

Half of the population are women. However, women empowerment still faces challenges such as the following as reported by arsjadrasjid.com:

- The number of unemployed female fresh graduates is higher than men.
- Gender gap in male and female achievements.
- The assumption that women are enough to take care of domestic matters and men only earn a living.

There needs to be concrete and sustainable follow-up to improve the above conditions and strengthen the role of Indonesian women.

As quoted from the Roadmap for Golden Indonesia 2045 launched by Kadin, the government has set a national agenda to empower vulnerable populations, including women.

There are 4 main areas that show improvement in education, maternal health services, access to microfinance services for entrepreneurs and regulations to support women in the workforce as follows:

1. Education sector
Women's inclusion in the education system showing a 75% increase in 20 years.

2. Improved health services for mothers
Mortality decreased from 212 per 1000 to 126 in 2015.

3. Access to microfinance services for entrepreneurs
Many microfinance programmes target women. Around 51% of Indonesian MSME owners are women.

4. Regulations that support women's participation
Open spaces and opportunities for women to work in the world of work and politics.

There are still obstacles to improving inclusion efforts in Indonesia. Despite these achievements, Indonesia still faces obstacles in its inclusion efforts for women, especially in the labour force.

The number of women in the labour force is 39% but most are still working in the informal sector with a number of issues including:

- 53% wage gap, while the formal sector is 28%.

- Women in the informal sector receive no legal protection

- No health insurance or company benefits

The factor causing the low participation of women in the formal sector is due to the view in society that women must prioritise domestic roles such as household chores.

Yet to achieve the Golden Indonesia of 2045, we should start investing in women to increase the competitiveness and productivity of this potential population.

A study conducted by Mckinsey and Company (2018) states that Indonesia has the potential to increase gross domestic product (GDP) in 2025 by USD 135 billion if it strives for gender equality.

This potential is equivalent to a 9 per cent increase in GDP compared to projections if doing business as usual.

Realise the essence of Kartini Day by increasing support for women in the workplace. There needs to be an effort to accelerate social inclusion, especially improving the quality of life of women and unlocking the potential for increased GDP to transform Indonesia.

Steps to increase support for women in the work environment establish inclusive regulations, policies and incentives to increase inclusion in the workplace including creating a safe working environment.

The hope is to increase women's participation in the labour force from 54% to 75%+ by 2045. Ways to do this include establishing inclusive regulations, policies and incentives to increase inclusion in the workplace.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry