Indonesia’s businesses navigated a challenging business environment in 2024, navigating global economic instability and local transitions.
Markets were weighed down by conflicts in the Middle East and beyond, while rising costs of living pushed businesses to adjust salaries and benefits to retain employees. Domestically, Indonesia concluded the year with a historic election season, ushering a new president and set of lawmakers in office. This transition is expected to have a positive influence on industries such as construction, infrastructure, manufacturing, and financial services.
Amidst these challenges, some sectors capitalised on the growing adoption of artificial intelligence (AI) and emerging technologies to improve efficiency. “Technology was pivotal in helping many businesses achieve greater operational effectiveness,” shares Eric Mary, Country Head at Robert Walters Indonesia.
“As workplaces integrate more advanced technologies, candidates who can adapt, learn, and keep up with rapid changes are highly valued,” Eric explains. Emotional intelligence, confident leadership, and strong communication skills have also emerged as critical attributes for professionals, enabling them to thrive in tech-driven, collaborative environments.
The focus on technology has reshaped hiring expectations, with digital literacy now considered a baseline requirement across most industries. Data analysis capabilities became indispensable for businesses, while skills in areas like AI, machine learning cloud computing, cybersecurity, automation, and robotics saw rising demand.
Read on to find out more about Eric’s expectations for Indonesia’s labour market in 2025.
Amid such economic ambiguities, Indonesia’s businesses are prioritising workforce strategies that emphasise efficiency and adaptability .
A key trend is the growing focus on skills-based hiring, where specialised expertise and practical skills are favoured over traditional qualifications. This approach enables organisations to quickly respond to shifting demands and address critical skills gaps in their workforce.
Retaining top talent has also become crucial. Increasingly, Eric finds that companies are offering competitive salaries, flexible work arrangements and comprehensive benefits to keep employees engaged and motivated. Diversity, equity and inclusion (DE&I) initiatives have also gained prominence, reflecting efforts to create supportive environments that nurture long-term employee satisfaction.
Businesses are also increasingly adopting fixed-term contracts. These contracts provide for more flexibility to align workforce size with specific project demands or market conditions without the complexities of permanent staffing reductions. The Omnibus Law has further bolstered this shift, giving companies fewer long-term financial commitments and more control over contract durations and renewals, which is especially valuable during uncertain times.
“As workplaces integrate more advanced technologies, employers increasingly appreciate candidates who can adapt, learn, and keep up with rapid changes are highly valued,” Eric explains. “Emotional intelligence, confident leadership, and solid communication skills have emerged as critical attributes in hiring, as these help professionals thrive in tech-driven, collaborative environments.”
Looking ahead, Eric believes that the market will maintain a robust appetite for digital skills. In particular, demand will remain strong in areas like data analysis, cybersecurity and software development.
Employee well-being will also be a key focus point. By offering mental health support and promoting work-life balance, companies will forge various initiatives to enhance employees’ job satisfaction and productivity levels.
To meet various skills gaps, companies will also put more effort into proactive outreach and engaging passive candidates. “Such candidates have valuable skills and experience, but they may not be actively looking for new roles. Businesses will look to snap up these candidates through employee referrals and stronger employer branding,” says Eric.
The playing field has become more challenging and complex for businesses looking to attract and retain talent.
More companies are leveraging AI and data analytics to streamline candidate selection, make more informed hiring decisions, and improve the candidate experience. They are also looking for more flexible and specialised solutions, such as executive search, contracting, outsourcing and leadership coaching, to address talent needs.
Even though many businesses have been more cautious with hiring due to economic fluctuations and global uncertainties, Eric stresses the importance of staying on top of employee expectations so as not to lose out on prized talent. Many employees now prioritise work-life balance and flexibility, as well as whether a job aligns with their personal values – all factors that he recommends accounting for in a talent strategy.
The key is to find the right blend of competitive compensation, flexible work arrangements, and career development opportunities. No two candidates are the same, so speak openly with them to understand what they prioritise and how your business can meet those asks.
In 2025, job movers are likely to receive moderate salary increments of between 10 – 15%. Certain sectors, such as high-tech, may experience slower wage growth due to market consolidation and funding challenges.
To secure and retain senior-level talent, companies are shifting towards more strategic, incentive-based compensation structures. These often include long-term incentives such as stock options or cash bonuses that align individual achievements with broader company goals.
“Through these targeted incentives, businesses aim to enhance employee engagement and commitment, even in a more competitive and cost-conscious market,” reveals Eric.
Find out more
Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in Indonesia.
Rini Kusumawardhani
Senior Manager - Financial Services
Rini joined Robert Walters in 2016 and is now a senior manager overseeing Banking, Financial Services, Legal, and Supply Chain teams. Her expertise and personable nature have driven key client wins and major placements.
Albertus Pratama
Senior Consultant - Legal, Indonesia
Albertus recruits mid-to-senior legal and government relations roles across industries, leveraging his experience as a commercial lawyer at a global law firm and his extensive legal network.
Rika Tantiana
Senior Manager - HR and Tech & Transformation Indonesia
With over five years of recruitment experience and proven track record of recruiting strategic and technical C-level roles, Rika currently leads the HR and Technology & Transformation team.
Aureen Na
Manager - Commerce Finance, Indonesia
Joining Robert Walters in 2017, Aureen recruits under the Commerce Finance division, specialising in hiring experienced finance professional within start-up, pharmaceutical, FMCG, telecommunication to manufacturing industry. With her experience and strong understanding of the recruitment landscape, she has accomplished multiple achievements during her time here.
Michelle Tanjung
Associate Director - Sales & Marketing, Indonesia
With over eight years of experience as a Brand Manager at a multinational FMCG company and as a Recruitment Specialist at Robert Walters, Michelle currently leads our Sales & Marketing team.
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