Looking for signs of life in Indonesia’s grim job market

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Hello reader,

A kick in the teeth. A gut-wrenching blow. A knockout punch. While I’ve fortunately not experienced being laid off and scouring for a regular source of income in a tough labor market, I can imagine that it would be as upsetting and unpleasant as the aforementioned actions.

However, that’s the predicament of job seekers in Indonesia, Southeast Asia’s largest economy, as they’re heading into 2023. While some retrenched employees were lucky enough to be offered new roles, they likely need to take a hefty pay cut – it’s like being hit when you’re already down.

According to data from Tech in Asia’s layoff tracker, over 111,000 pink slips were handed out by Asian tech startups last year as funds dried up amid the macroeconomic downturn.

Companies are expected to continue implementing measures such as downsizing and hiring freezes well into the new year. With such grim prospects, how will retrenched employees navigate this labor market?

My colleague Ardi offers some answers in today’s premium piece. He also discusses how a salary correction is leveling the playing field for new startups in Indonesia and how redistribution of top tech talent will affect the country’s startup ecosystem.

Today we look at:

• The shifting gears of Indonesia’s tough job market
• Indonesia-based Akulaku’s US$200million fundraise
• Other newsy highlights such as Baidu’s booming robotaxi service and a looming sales slowdown for Nio’s electric vehicles

Premium summary

Back on the market

Image credit: Timmy Loen

The labor market is undergoing a stomach-churning reset. An oversupply of talent coupled with a scarcity of jobs makes for an unpleasant cocktail, and Indonesian jobseekers are feeling its effects.

As companies keep a lid on costs and plot a course through an uncertain business environment, laid-off workers must go to great lengths to avoid prolonged unemployment.

• One’s loss is another’s gain: Heavily funded tech companies in Indonesia like GoTo, Shopee, and Ruangguru had offered highly competitive salaries, attracting the best and most promising talent. When these firms recently announced significant job cuts, other startups were quick to capitalize on the sudden supply of top tech talent.
• Winners and losers: Employers are likely to stop hiring for roles like sales, customer success, and marketing, according to Nurul Ramadani Nasution, assistant head of the tech division at recruitment firm Monroe Consulting Group. But some companies are still cautiously on the hunt for talent to fill roles in software development, mobile engineering, DevOps, product management, and data.
• Roll out the dough: Indonesia’s state-owned VCs should play a leading role in reviving the country’s startup ecosystem and reabsorbing laid-off talent, says Nailul Huda, a digital economy researcher at the Institute for Development of Economics and Finance in Jakarta. “The stronger the funding, the stronger our digital businesses will be,” he observes.

Festive fundraising

Let’s get that bag

Quick bytes