7th Meeting of the Expert Group on Informal Sector Statistics (Delhi Group)

New Delhi, 2 - 4 February 2004

 

Session No2

Improving the quality of Informal Sector Statistics – Country Experience

 

Informal Sector Statistics and Supporting Surveys: Indonesia Experience

TABLE_1

 

 

By

Rusman Heriawan

 

 

BPS, Statistics Indonesia

 


 


INFORMAL SECTOR STATISTICS AND SUPPORTING SURVEYS: INDONESIA EXPERIENCE

 

 

INTRODUCTION

 

Informal sector in Indonesia and in many other developing countries is substantial and important. Though its contribution to the Gross Domestic Product (GDP) is still very small (less than 20%), it absorbs a very large number of employment. In 2000, for instance, more than 64.9% of the total employment were working in the informal sector. The informal activity has become more important during economic crisis 1998-1999. People who lost their job in the formal sector tried to create their own job in the informal sector to survive.

 

However, the concept and definition of the informal sector is not clear enough. A number of discussions and workshops have already been conducted to define and specify this entity but still not having a good result. Many borderline cases around the informal sector are still subject to be discussed.

 

Unclear definition of the informal sector has influenced the development and improvement of their statistics. BPS - Statistics Indonesia has been conducting several surveys relating to the informal sector, using establishment approach as well as household approach. However, the results of both surveys are not fully reflecting to the informal sector. More interpretations are needed to specify the informal sector from those surveys.

 

II.           UNDERSTANDING OF INFORMAL SECTOR

 

A.           From Employment Point of View

 

The informal sector covers a wide range of labor market activities that combine two groups of different nature. On the one hand, the informal sector is formed by the coping behavior of individuals and families in their economic problems where earning opportunities are scarce. On the other hand, the informal sector is a product of rational behavior of entrepreneurs that desire to escape state regulations.


The two types of informal sector activities can be described as follows:

 

1.      Coping strategies (survival activities): casual jobs, temporary jobs, unpaid jobs, subsistence agriculture, multiple job holding;

 

2.      Unofficial earning strategies (illegality in business):

 

2.1.           Unofficial business activities: tax evasion, avoidance of labor regulation and other government or institutional regulations, no registration of the company;

 

2.2.           Underground activities: crime, corruption - activities not registered by statistical offices.


          The informal sector plays an important and controversial role. It provides jobs, reduces unemployment and underemployment, and helps alleviate poverty, but in many cases the jobs are low-paid and the job security is poor. It bolsters entrepreneurial activity, but at the detriment of state regulations compliance, particularly regarding tax and labor regulations. The size of the informal labor market varies from the estimated 4-6% in the high-income countries to over 50% in the low-income countries. Its size and role in the economy increases during economic downturns (recession) and periods of economic adjustment and transition (economy recovery).

 

The concept of the informal sector was introduced into international usage in 1972 by the International Labor Organization (ILO) in its Kenya Mission Report, which defined informality as a “way of doing things characterized by (a) ease of entry; (b) reliance on indigenous resources; (c) family ownership; (d) small scale operations; (e) labor intensive and adaptive technology; (f) skills acquired outside of the formal sector; and (g) unregulated and competitive markets”. Since that time, many definitions were introduced by different authors in different countries and the ILO itself. The ILO international symposium on the informal sector in 1999 proposed that the informal sector workforce can be categorized into three broad groups: (a) owner-employers of micro enterprises, which employ a few paid workers, with or without apprentices; (b) own-account workers, who own and operate one-person business, who work alone or with the help of unpaid workers, generally family members and apprentices; and (c) dependent workers, paid or unpaid, including wage workers in micro enterprises, unpaid family workers, apprentices, contract labor, homeworkers and paid domestic workers.


                    Operationalizing the concept of informality for the purpose of measurement is not easy both because the two categories of the informal sector overlap and because the border between the informal and the formal sector is blurry. First, if unofficial earning strategies are exercised by a low-profit small establishment with low quality working conditions, then workers of this enterprise and the enterprise itself can be classified as belonging to both informal market categories. An example of such a case is an unregistered one-person low-profit street trade establishment - these characteristics combine unofficial and survival activities. Second, some formal market jobs or establishments can be classified as informal if it is found that they have poor work protection or if the life style and opportunities they entail are considered undesirable. If the street trader from the previous example registers her establishment, the establishment and the trader herself could be categorized as belonging to the formal sector if the profit is considered above the survival level.

 

The lattest approach – developed by BPS-Statistics Indonesia is a modification of the first one – proposed by combining the employment status and occupation. There are several differences compared to the prior approach, namely:

 

a)           Self-employed without assistance of other person(s); agricultural freelance worker; and non-agricultural freelance worker, who merely having occupation other than (i) professional, technical and related workers; (ii) administrative and managerial workers; and (iii) clerical and related workers are categorized into formal sector.

 

b)           Self-employed assisted by family worker or temporary workers who merely having occupation as (i) agricultural workers and (ii) others are categorized into informal sector.

 

Main Employment Status

Main Occupation

Professional, Technical & Related Workers

Administrative

& Managerial

Workers

Clerical & Related Workers

Sales Workers

Services

Workers

Agricultural

Workers

Production

Workers

Operators

Laborers

Others

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

Self Employed

F

F

F

INF

INF

INF

INF

INF

INF

INF

Self Employed Assisted by Family or Temporary Worker

F

F

F

F

F

INF

F

F

F

INF

Employer

F

F

F

F

F

F

F

F

F

F

Employee

F

F

F

F

F

F

F

F

F

F

Agricultural Freelance Worker

F

F

F

INF

INF

INF

INF

INF

INF

INF

Non-Agricultural Freelance Worker

F

F

F

INF

INF

INF

INF

INF

INF

INF

Unpaid Worker

INF

INF

INF

INF

INF

INF

INF

INF

INF

INF

F   = Formal

Inf =  Informal

 

Approaches to measuring the informal sector and examples of empirical work where indirect measures were used to estimate the size of the unofficial economy and informal sector can be found in the next section.

 

B.     From Type of Economic Activity-Point of View

 

According to the 1996 Economic Census, all economic activities are divided into two broad groups: (1) establishment having legal status, such as state-owned company, local government-owned company, limited private company, co-operative, and foundation; (2) establishment not having legal status, such as micro establishment, home-industry, street-vendor, etc.

 

The economic activity without having legal status is understood to be closed to the informal sector, eventhough not exactly the same. By location, this entity can be grouped into : (a) establishment using fixed location and unremovable equipments, (b) establishment using unfixed location or located in fixed location but their equipments are removable.

 

Viewed from their economic activity, the coverage of establishment without having legal status are : (a) individually owned mining, (b) small scale and cottage industry, (c) individual construction activity, (d) trade, restaurant and accommodation, (e) individual transport activity, (f) saving, loan, and money changer runned by individual, (g) other services.

 

Informal establishment are not easy to define due differences of the type of establishments in different sectors. In BPS, the manufacturing establishment is categorized by the number of workers. Establishment with workers less than 5 is classified as household cottage industry, and if its workers are 5-19, are included in small-scale industries. There is no agreement yet for the informal establishments on whether to confine only to industries with less than 5 or less than 20 workers. However, the most commonly accepted criterium for informal establishments are those establishments with less than 5 workers.

 

For other sectors, the problem are more complicated. For trade sector, for instance, the assets and total sales can be very substantial even if the number of workers are less than 5. the ministry in charge used assets and outputs for all sectors to define small and medium scale establishment, not for defining informal establishment.

 

The 1996 Economic Census conducted by BPS, for the sake of data collection on establishments are divided into two groups. Directory and Non-Directory Establishments. The Directory Establishments (DE) are to compiled in a directory and routinely updated. While the collection of NDE, is only done occasionally through surveys. The NDE can be used as the basis for defining informal establishments. As mentioned above for manufacturing establishments, the NDE are those with less than 19 workers, while for other sectors are based on not having legal status.

 

Legal status in Indonesia must also be clearly defined. At least there are three different legal status. The first is whether incorporated or unincorporated establishments, the second is those establishments granted permission by the local authority (government) to operate, and the third are those registered with some ministries in charge for the sectoral development. In 1996 Economic Census any one of them are considered as DE. However, it is disputed whether NDE can be considered as informal establishments. But at least, this information can be used as the basis for defining informal establishments.

 

III.        SURVEYS RELATING TO THE INFORMAL SECTOR

 

A.     Labor Force Survey

 

The important household survey relating to the informal sector is the National Labour Force Survey (NLFS) conducted annually since 1976. The NLFS aims to meet three main objectives: (a) to know number of employment by education, working hours, occupation, industrial origin, and employment status, at national and regional level, (b) to derive unemployment by different characteristic, and (c) to specify working age population not in labour force which are in school, housekeeping, and others.

 

According to the survey, employment is defined as the persons of 15 years old and over who work for pay or assist others in obtaining pay or profit for duration at least one hour during the survey week. The rest of the total labour force are classified as unemployment, the persons who do not have any work and looking for work. Unemployment rate in Indonesia according to the above definition is about 9.06 % in 2002.

 

One important classification of the employment relating to the informal sector is employment status. There are five different levels of work status:

 

a)           Self-employed without assistance of other person(s) is a person who works at his/her own risk without assistance of his/her family members or other workers.

b)           Self-employed assisted by family worker or temporary workers.

c)            Employer with permanent workers is a person who does his/her business assisted by paid permanent workers.

d)           Employee, is a person who works for another person or an institution for pays in cash or in kind.

e)           Unpaid worker, is a person who works without pay in an economic institution operated by other members of the family, relatives, or neighbours.

 

To interpret informal worker using the employment status is also not easy, however, three status above are closed to this: self-employed without assistance of other person, self-employed assisted by family workers and unpaid worker. Most researchers and analysts agree to use those three categories to approach the number of informal worker. However, as described before, not all self-employed and self-employed assisted by family or temporary worker are informal worker.

 

The latest NLFS was carried out in August 2002. The total samples selected for this survey was about 66,000 households scattered all over Indonesia. Sampling was designed to obtain the pictures of employment and unemployment at provincial level. Two-stage sampling was applied to select a representative sample: first, to select a number of enumeration area (census block) using Probability Proportional to Size (PPS) method, second, after listing all households at selected census block, a number of households were drawn using Systematic Sampling (SS). One census block consists of around 300 households.

 

One important thing to be considered, that in the period of 1986-1993, NFLS has been conducted quarterly, in order to obtain seasonally employment pattern and unemployment over the years. However, since the number of sample became very small due to the limited budget and seasonal index of sectoral unemployment was not significantly change, the survey was considered again to be in annual basis.

 

 

B.     The 1996 and Coming 2006 Economic Census

 

BPS has undertaken the 1996 Economic Census, as the second economic census after similar census in 1986. In 2004, a preparation of 2006 Economic Census will be started. The census becomes a starting point for the informal sector statistics under establishment approach. The census covers all economic activities except agriculture. The economic activity both having legal status (formal/large-scale establishment) and not having legal status (informal/small-scale establishment) were covered in the census.

 

The objectives of the Economic Census are: (a) to know the population of establishments for non-agricultural activities along with number of employees, (b) to construct an integrated directory of companies having a business legal entity, to be used as the basis for national sampling frame, (c) to provide with detailed economic structures and indicators regarding business activities.

 

The important data regarding informal sector from the Economic Census are:

 

(a).       number of establishment not having legal status by employment size, industrial origin, province, and other characteristic.

(b).       output and input structure by industrial group and province.

(c).       number of establishment by industrial group and province, and

(d).       their opinion on the prospects and constraints regarding their activity.

 

C.         Integrated Survey of Small-Scale Establishment

 

ntegrated Survey of Small-Scale Establishment (ISSE) is a follow-up survey of the Economic Census concerning only on the establishment without having legal status. This survey also covers all economic activities except agriculture. As mentioned before, the result of the ISSE was not fully reflecting the informal sector. As a starting point, the number of small-scale establishment (SSE) recorded under the 1996 Economic Census was 16.8 million excluding agriculture sector. To have a more complete picture of SSE, a sample size of 1.16 million establishments has been selected under the census and out of this 0.64 million was for retail trade. The ISSE itself has been conducting in 1998, 1999, 2000, 2001, 2002, and 2003. There was no ISSE in 1997. The number of sample for 1998 was only 89,000 establishments, conducted once, while for 1999 was 118,000 establishments conducted four times (quarterly) using 29,500 samples for each quarter, among others 11,325 samples for retail trade. For two years later – i.e., in 2000 and 2001 – respectively employed 59,433 samples or on average 14,850 samples for each quarter. The latest survey for 2002 employed 59,466 samples or approximately 14,866 samples for each quarter.

 

Two-stage sampling was applied in ISSE to select representative establishment. First, to select a number of enumeration area by considering two stratums, highly-density economic unit area and housing area, second, to select a number of establishments after having the list of all establishments within the selected enumeration area, and PPS method was implemented.

 

 

IV.  COMBINING INFORMATION FROM ESTABLISHMENT AND HOUSEHOLD SURVEY FOR DEFINING INFORMAL SECTOR

 

It is interesting to analyze the two sources of information on informal sector: establishment survey and household survey. The important question is whether informal workers must work in an informal establishment, and formal workers work in formal establishment. Or is it possible, formal workers work in an informal establishment and on the other way around, informal workers work in formal establishment. A matrix can be produced, and a reconciliation can be done to obtain more precise estimate of informal sector.

 

However, any definition produced must be operational, and consequentially must be simple. Due to the nature of irregularity of informal activities, a precise definition is almost impossible to developed. We must aimed at closest definition that can portray the activities and flunctuation of this sector for policy analysis. Precise measurement is not always necessary and sometimes is not possible.

 

V.       INFORMAL SECTOR: SURVEY RESULT

 

A.         Number of Employment in the Informal Sector

 

Total labour force in 2002 derived from the NLFS (as shown in Table 1.a) was accounted for 100.8 million. This means that the Labour Force Participation Rate (LFPR) reached 67.8 %, since total working-age population estimated for 148.7 million. The 2002 LFPR is slightly higher than the LFPR in 1996 (66.9 %), influenced by the higher growth of labour force which reached 2.2% per year during 1996 – 2002.

 

Out of the total labour force, 91.6 million are working (employment) and 9.1 million are not working and still looking for work (unemployment). According to this, unemployment rate for 2002 is about 9.1 % obviously higher than the rate for 1996 (4.9 %).

 

Regarding the employment status (as depicted in Table 1.b), the largest part of employment in 2002 was employee (paid permanent worker) which reached 36.1 %. The second largest part was self-employed assisted by family member (24.0 %), followed by self-employed without assistance from other persons (19.2 %), unpaid worker (17.6 %), and employer (3.0 %). Using the informal sector spesification as described before, total informal workers in 2002 was 55.7 million or 60.8 % of the total employment. This percentage is slightly lower than the percentage of 1996 (64.4 %). The highest percentage of the informal worker was recorded for 1998 (65.4 %). This is caused by the sharp increase of the total informal worker during economic crisis, from 54.0 million in 1996 to 57.3 million in 1998, or an increase of 6.1 % during the period.

 

Further information on informal worker can be seen at Table 1.c. Agricultural sector, in fact, has highest density of informal worker, which reached 44.3 % to the total employment in 2002. Self-employment assisted by family member is the most typical status in agricultural activities. The second highest density of informal worker was in trade sector (19.4 %), and self-employment without assistance of other persons was the most typical. On the other hand, the lowest density of informal sector was in financial sector (1.1 %). The most employment in this sector are paid parmanent worker.

 

On the other hand by utilizing the lattest approach (Table 1.d), total informal worker in 2002 was 58.0 million workers who mostly (64.4 %) involved in agricultural activities.

 

B.         Number of Establishments in the Informal Sector

 

Based on the 1996 Economic Census, total establishment excluding agriculture reached 17.02 million (Table 2.a), among others 16.78 million (98.6%) are establishment without having legal status, and only 0.24 million (1.4%) are having legal status. As described before, establishments without having legal status are considered as approximation of informal sector.

 

The largest informal sector both in number and in percentage was in trade sector, 9.77 million establishments and 99.5% were operating as informal activity. In contrast, smallest percentage of informal sector was in financial sector (31.7%). The informal sector,  in fact, are scaterred in every province all over Indonesia. The percentage of number of establishments categorized in informal sector to the total establishments in every province is almost the same (see Table 2.b).

 

In number of employees (Table 2.c), 78.6% of employees in 1996 were working in informal sector. The most informal workers were working in trade sector (94.3%) and the least were in financial sector (8.2%). In term of gross output (Table 2.e), informal sector contributed only 17.8% of the total output, and the biggest contribution was in trade sector (61.2%), whereas the smallest was in electricity, gas and water supply (only 0.4%).

 

During the period of 1996 – 2002, the number of establishments in informal sector was very fluctuating, as shown in Table 3.a. It was recorded at 16.8 million in 1996, 14.0 million in 1998 (or decreased by 16.7%), 14.5 million in 1999 (or increased by 3.9%), 15.0 million in 2000 (or increased by 3.2%), 14.7 million in 2001 (or decreased by 2.1%), and 15.6 million in 2002 (or increased by 6.1%). The decline of the number of establishments in 1998 mainly caused by economic crisis, where almost all economic activities (except agriculture) collapsed, among others closed their businesses.

 

Trade sector has consistently largest number of informal activity during the period. This sector contributed 57.6% - 61.2% of the total informal activities. In contrast, financial sector only contributed around 0.02% of the total informal activities. By province, Central Java contributed the largest number of informal activity (21.6%), followed by East Java (20.1%), and West Java (19.7%). Jakarta as the capital city contributed around 5% during 1996 – 2002.

 

V.       CONCLUSION

 

Informal sector is very typical but important element in many developing countries including Indonesia. It absorbs a very large number of employment, eventhough its contribution to the GDP is still very low. When the country was facing on the problem of high unemployment rate, informal sector is usually considered to solve.

 

The concept and definition of the informal sector are still unclear and influences so far, the development of informal sector statistics in one side and policy making process of informal sector in another side. Many policy makers have different perception and understanding of the sector.

 

The concept of employment (working person) implemented in the NLFS looks very weak since it considered at least one hour working during the survey week to be an employment. In consequence, unemployment rate tends to be underestimated, and under-employment including those are working in the informal sector become very high. The nature of employment, in fact very different in developing countries compared to developed countries.

 

Table 1.a.  Population 15 Years of Age and Over by Type of Activity, 1996 - 2002

 

Type of Activity

1996

1997

1998

1999

2000

2001

2002

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Economically Active

(Labour Force)

 

a.  Working (Employment)

 

b. Looking For Work (Unemployment)

88.186.772

 

 

83.900.138

 

 

4.286.634

89.602.835

 

 

85.405.529

 

 

 4.197.306

92.734.932

 

 

87.672.449

 

 

5.062.483

94.847.178

 

 

88.816.859

 

 

6.030.319

95.650.961

 

 

89.837.730

 

 

5.813.231

98.812.448

 

 

90.807.417

 

 

8.005.031

100.779.270

 

 

91.647.166

 

 

9.132.104

2. Non Economically   Active (Non- Labour Force)

 

a. Attending School

 

b. House Keeping

 

c. Others

43.691.185

 

 

 

10.794.865

 

23.987.821

 

8.908.499

45.467.515

 

 

 

10.814.356

 

25.896.013

 

8.757.146

45.821.266

 

 

 

11.273.682

 

25.266.906

 

9.280.678

46.249.239

 

 

 

10.934.731

 

25.857.621

 

9.456.887

45.519.844

 

 

 

10.763.473

 

25.275.187

 

9.481.184

45.221.425

 

 

 

10.899.236

 

26.461.653

 

7.860.536

47.950.664

 

 

 

11.238.799

 

28.724.098

 

7.987.767

Total

131.877.957

135.070.350

138.556.198

141.096.417

141.170.805

144.033.873

148.729.934

1.    Unemployment Rate (%)

4.86

4.68

5.46

6.36

6.08

8.10

9.06

2.    Labour Force Participation Rate (%)

66.87

66.34

66.93

67.22

67.76

68.60

67.76

 

Note :        Working (Employment) is an activity done by a person who worked for pay or assisted others in obtaining pay or profit for the duration at least one hour during the survey week.

 

Table 1.b.  Number of Employment by Main Employment Status, 1996 - 2002  

 

Main Employment Status

1996

1997

1998

1999

2000

2001

2002

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

 

1. Self Employed (Own Account Worker)

 

18.250.051

(21.75)

 

19.864.774

(23.26)

 

20.523.338

(23.41)

 

21.707.778

(24.44)

 

19.501.330

(21.71)

 

17.451.704

(19.22)

 

17.632.909

(19.24)

 

2. Self Employed Assisted by Family Member (Temporary Employee)

 

21.094.975

(25.15)

 

17.982.745

(21.06)

 

19.690.059

(22.46)

 

18.914.502

(21.30)

 

20.720.366

(23.06)

 

20.329.073

(22.39)

 

22.019.393

(24.03)

 

3. Employer

 

1.184.428

(1.41)

 

1.466.471

(1.72)

 

1.525.625

(1.74)

 

2.552.803

(2.87)

 

2.032.527

(2.26)

 

2.788.878

(3.07)

 

2.786.226

(3.04)

 

4. Employee

 

28.704.064

(34.21)

 

30.277.787

(35.45)

 

28.805.421

(32.86)

 

29.383.548

(33.08)

 

29.498.039

(32.84)

 

32.651.161

(35.96)

 

33.123.320

(36.14)

 

5. Unpaid Worker

 

 

14.666.620

(17.48)

 

15.813.752

(18.51)

 

17.128.006

(19.53)

 

16.258.228

(18.31)

 

18.085.468

(20.13)

 

17.586.601

(19.37)

 

16.085.318

(17.55

6. Total

 

83.900.138

(100.00)

 

85.405.529

(100.00)

 

87.672.449

(100.00)

 

88.816.859

(100.00)

 

89.837.730

(100.00)

 

90.807.417

(100.00)

 

91.647.166

(100.00)


Table 1.c.  Number of Employment By Main Employment Status And Main Industry, 2002

   

Main Employment Status

Main Industry

 

 

 

Total

 

Agriculture,Forestry, Hunting and Fishery

 

Manufactur-ing Industry

 

 

Construc-tion

 

 

Wholesale Trade, Retail Trade, Restaurants and Hotels

Transportation, Storage and Comunica-tion

 

 Financing,Insurance,Real Estate and Business Services

Community, Social and Personal Services

 

 

 

Others

 

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

1. Self Employed

4.514.639

(11.11)

1.240.077

(10.24)

405.729

(9.49)

7.237.659

(40.67)

2.578.922

(55.19)

39.651

(4.00)

1.468.647

(14.18)

147.585

(18.22)

17.632.909

(19.24)

2. Self Employed Assisted by Family Member (Temporary.Help)

16.403.393

(40.37)

 

 

1.198.936

(9.90)

 

111.541

(2.61)

3.850.590

(21.64)

160.826

(3.44)

11.538

(1.16)

204.616

(1.98)

 

 

77.953

(9.62)

 

 

22.019.393

(24.03)

3. Employer

952.985

(2.34)

441.524

(3.65)

253.809

(5.94)

703.055

(3.95)

210.788

(4.51)

15.831

(1.60)

181.398

(1.75)

 

26.836

(3.31)

 

2.786.226

(3.04)

4.   Employee

6.842.476

(16.84)

7.941.301

(65.58)

3.450.802

(80.74)

3.426.703

(19.26)

1.683.169

(36.02)

921.572

(92.92)

8.351.389

(80.61)

505.908

(62.45)

33.123.320

(36.14)

5. Unpaid Worker

11.920.134

(29.34)

1.288.159

(10.64)

52.033

(1.22)

2.577.023

(14.48)

38.879

(0.83)

3.153

(0.32)

154.138

(1.49)

51.799

(6.39)

16.085.318

(17.55)

     Total

40.633.627

(100.00)

12.109.997

(100.00)

4.273.914

(100.00)

17.795.030

(100.00)

4.672.584

(100.00)

991.745

(100.00)

10.360.188

(100.00)

810.081

(100.00)

91.647.166

(100.00)

 


Table 1.d. Number of Informal Workers by Main Industry

 

Main Industry

1997

1998

1999

2000

2001

2002

(1)

(2)

(3)

(4)

(5)

(5)

(6)

1.           Agriculture

29.972.910

34.031.940

32.307.276

32.085.241

 36.027.502

37.321.006

2.           Mining & Quarrying

367.376

  225.484

278.657

393.267

401.376

277.881

3.           Manufacturing

3.415.751

3.034.818

3.577.520

3.656.475

2.940.692

3.155.917

4.           Electricity, Gas, and   Water Supply

32.747

21.071

18.469

35.055

16.867

12.964

5.           Construction

652.455

646.240

522.579

698.437

1.529.028

2.199.153

6.           Trade

10.464.901

10.449.160

10.726.260

11.202.412

10.052.605

10.036.112

7.           Transport, Storage and Communication

2.220.002

 2.319.807

2.473.556

2.376.456

2.573.525

2.883.232

8.           Financial & Corporate Services

71.512

54.061

63.053

76.552

59.401

31.806

9.           Social & Community Services

2.768.840

2.599.705

2.631.414

2.963.973

2.205.202

2.058.531

All Sectors

49.966.494

53.382.285

52.598.784

53.487.868

55.806.198

57.976.602

 

 

 

 

Table 1.e. Number of Informal Workers by Education  (1997 -2002)

 

 

No

Education

1997

1998

1999

2000

2001

2002

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

1.

 No Schooling

6.585.852

6.288.030

5.676.642

6.564.728

5.719.851

5.860.519

2.

Did Not Complete/ Not Yet Completed Primary School

12.525.372

11.921.928

11.104.832

12.446.539

12.007.310

11.734.603

3.

 Primary School

18.394.376

21.673.520

21.303.366

22.627.238

24.254.779

25.685.565

4.

Junior High School General

5.075.941

5.949.460

6.481.206

6.211.259

7.877.996

8.425.655

5.

Junior High School Vocational

665.144

758.829

804.876

792.220

775.763

740.912

6.

Senior High School General

2.551.859

3.057.686

3.390.231

3.192.236

3.297.628

3.531.565

7.

Senior High School Vocational

1.078.602

1.291.180

1.331.114

1.347.997

1.515.948

1.640.148

8.

Diploma I/II

38.098

50.812

46.284

53.048

48.557

60.048

9.

Academy/ Diploma III

66.268

80.533

90.654

84.077

97.573

93.223

10.

University

117.676

161.423

177.565

168.526

210.793

204.364

 

Total

47.099.188

51.233.401

50.406.770

53.487.868

55.806.198

57.976.602

 


 


Table 1.f. Number of Informal Workers by Area

1997 -2002

 

 

Area

1997

1998

1999

2000

2001

2002

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1. Urban

9.680.235

10.984.451

11.734.844

11.467.809

13.927.253

15.297.449

 

 

 

 

 

 

 

2. Rural

37.418.953

40.248.950

38.671.926

42.020.059

41.878.945

42.679.153

Total

47.099.188

51.233.401

50.406.770

53.487.868

55.806.198

57.976.602

 


 

 

 

Table 1.g. Number of Informal Workers by Sex

1997 -2002

 

 

Explanation

1997

1998

1999

2000

2001

2002

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1. Male

26.857.087

29.497.450

29.318.443

30.795.451

33.067.518

35.380.327

 

 

 

 

 

 

 

2. Female

20.242.101

21.735.951

21.088.327

22.692.417

22.738.680

22.596.275

Total

47.099.188

51.233.401

50.406.770

53.487.868

55.806.198

57.976.602

 

 

 

 

 

 

 

 

Table 2.a. Number of  Establishment by Industry and Type of Establishment, 1996

 

 

Industry

Type of Establishment

 

Total

 

 

With Legal Entity

Without Legal Entity

 

 

(1)

(2)

(3)

(4)

 

1.  Mining and Quarrying

2.460

(1.23)

197.176

(98.77)

199.636

(100.00)

 

2.  Manufacturing  Industry

22.990

(0.80)

2.859.304

(99.20)

2.882.294

(100.00)

 

3.  Electricity, Gas, and Water Supply

520

(5.50)

8.929

(94.50)

9.449

(100.00)

 

4.  Construction

32.205

(17.55)

151.321

(82.45)

183.526

(100.00)

 

5.  Wholesale and Retail Trade, Restaurants and Accommodation Services

50.688

(0.52)

9.772.431

(99.48)

9.823.119

(100.00)

 

6.  Transport, Storage and Communication

15.498

(0.84)

1.833.648

(99.16)

1.849.146

(100.00)

 

7.  Financial Institution

35.856

(68.32)

16.630

(31.68)

52.486

(100.00)

 

8.  Real Estate, Rental Service and Other Services

78.195

(3.87)

1.941.192

(96.13)

2.019.387

(100.00)

 

9.  All Sectors Except Agricultural Sector

238.412

(1.40)

16.780.631

(98.60)

17.019.043

(100.00)

 

       

 

 

 

Table 2.b. Number of  Establishment by Province and Type of Establishment, 1996

 

 

Island/

Type of Establishment

Total

Province

With Legal Entity

Without Legal Entity

 

 

 

(1)

(2)

(3)

(4)

 

1.        Sumatera

39.479

(1.42)

2.744.345

(98.58)

2.783.824

(100.00)

 

2.        Java

a        Jakarta, Cap. city

28.491

(3.24)

852.073

(96.76)

880.564

(100.00)

 

b        West Java

37.499

(1.07)

3.472.506

(98.93)

3.510.005

(100.00)

 

c        Central Java

31.750

(1.08)

2.899.288

(98.92)

2.931.038

(100.00)

 

d        Yogyakarta

5.941

(1.60)

364.386

(98.40)

370.327

(100.00)

 

e        East Java

43.642

(1.24)

3.470.711

(98.76)

3.514.353

(100.00)

 

3.        Bali and Nusa Tenggara

16.087

(1.91)

827.649

(98.09)

843.736

(100.00)

 

4.        Kalimantan

14.474

(1.70)

838.110

(98.30)

852.584

(100.00)

 

5.        Sulawesi

16.369

(1.43)

1.129.005

(98.57)

1.145.374

(100.00)

 

6.        Maluku and Irian  Jaya

4.680

(2.50)

182.558

(97.50)

187.238

(100.00)

 

Indonesia

238.412

(1.40)

16.780.631

(98.60)

17.019.043

(100.00)

         

 


Table 2.c. Number of Employees by Industry and Type of Establishment,  1996

 

 

Industry

Type of Establishment

Total

With Legal Entity

Without Legal Entity

(1)

(2)

(3)

(4)

1.        Mining and Quarrying

102.433

(21.73)

368.982

(78.27)

471.415

(100.00)

2.        Manufacturing  Industry

4.229.906

(39.06)

6.598.136

(60.94)

10.828.042

(100.00)

3.        Electricity, Gas, and Water Supply

95.154

(86.94)

14.296

(13.06)

109.450

(100.00)

4.        Construction

299.884

(33.40)

598.087

(66.60)

897.971

(100.00)

5.        Wholesale and Retail Trade, Restaurants and Accomodation Services

961.019

(5.73)

15.821.781

(94.27)

16.782.800

(100.00)

6.        Transport, Storage and Communication

393.841

(14.58)

2.307.338

(85.42)

2.701.179

(100.00)

7.        Financial Institution

493.198

(91.83)

43.880

(8.17)

537.078

(100.00)

8.        Real Estate, Rental Service and Other Services

1.296.928

(29.34)

3.123.922

(70.66)

4.420.850

(100.00)

All Sectors Except Agricultural Sector

7.872.363

(21.42)

28.876.422

(78.58)

36.748.785

(100.00)

 

 


Table 2.d. Number of Employees by Province and Type of Establishment, 1996

 

Island/

Province

Type of Establishment

Total

With Legal Entity

Without Legal Entity

(1)

(2)

(3)

(4)

1.        Sumatera

1.024.356

(17.23)

4.921.289

(82.77)

5.945.645

(100.00)

2.        Java

a        Jakarta, Cap. city

1.331.433

(45.80)

1.575.571

(54.20)

2.907.004

(100.00)

b        West Java

2.045.778

(26.69)

5.620.031

(73.31)

7.665.809

(100.00)

c        Central Java

922.571

(15.57)

5.002.881

(84.43)

5.925.452

(100.00)

d        Yogyakarta

125.789

(16.36)

643.167

(83.64)

768.956

(100.00)

e        East Java

1.464.023

(20.14)

5.804.185

(79.86)

7.268.208

(100.00)

3.        Bali and Nusa Tenggara

250.647

(14.45)

1.484.531

(85.55)

1.735.178

(100.00)

4.        Kalimantan

357.101

(19.09)

1.513.481

(80.91)

1.870.582

(100.00)

5.        Sulawesi

248.243

(11.29)

1.949.624

(88.71)

2.197.867

(100.00)

6.        Maluku and Irian  Jaya

102.422

(22.07)

361.662

(77.93)

464.084

(100.00)

Indonesia

7.872.363

(21.42)

28.876.422

(78.58)

36.748.785

(100.00)

 

Table 2.e.  Gross Output by Industry and Type of Establishment, 1996

 

(Billion Rupiah)

Industry

Type of Establishment

Total

With Legal Entity

Without Legal Entity

(1)

(2)

(3)

(4)

1.        Mining and Quarrying

63 127.0

(98.95)

667.5

(1.05)

63 794.5

(100.00)

2.        Manufacturing Industry

277 983.2

(91.18)

26 879.1

(8.82)

304 862.3

(100.00)

3.        Electricity, Gas, and Water Supply

9 804.4

(99.65)

34.8

(0.35)

9 839.2

(100.00)

4.        Construction

44 332.4

(96.97)

1 387.5

(3.03)

45 720.0

(100.00)

5.        Wholesale and Retail Trade, Restaurants and Accommodation Services

38 514.5

(38.78)

60 793.2

(61.22)

99 307.7

(100.00)

6.        Transport, Storage and Communication

33 474.4

(68.62)

15 306.6

(31.38)

48 781.0

(100.00)

7.        Financial Institution

38 151.4

(99.25)

288.4

(0.75)

38 439.8

(100.00)

8.        Real Estate, Rental Service and Other Services

35 232.0

(74.90)

11 804.5

(25.10)

47 036.6

(100.00)

All Sectors Except Agricultural Sector

540 619.4

(82.19)

117 161.7

(17.81)

657 781.0

(100.00)

 

 


Table 2.f.  Gross Output by Province and Type of Establishment, 1996

 

(Billion Rupiah)

 

Island/

Type of Establishment

Total

Province

With Legal Entity

Without Legal Entity

 

(1)

(2)

(3)

(4)

 

1.         Sumatera

87 165.3

(82.02)

19 114.1

(17.98)

106 279.4

(100.00)

 

2.         Java

a       Jakarta, Cap. City

137 137.5

(90.18)

14 934.9

(9.82)

152 072.4

(100.00)

 

b.      West Java

130 617.3

(82.77)

27 190.5

(17.23)

157 807.7

(100.00)

 

c.      Central Java

36 951.4

(69.95)

15 876.6

(30.05)

52 828.1

(100.00)

 

d.      Yogyakarta

4 157.2

(64.43)

2 294.6

(35.57)

6 451.8

(100.00)

 

e.      East Java

75 083.3

(79.04)

19 914.2

(20.96)

94 997.5

(100.00)

 

3.         Bali and Nusa Tenggara

8 214.3

(65.32)

4 360.9

(34.68)

12 575.1

(100.00)

 

4.         Kalimantan

39 962.1

(86.65)

6 159.0

(13.35)

46 121.1

(100.00)

 

5.         Sulawesi

11.979.5

(67.49)

5 771.4

(32.51)

17 750.9

(100.00)

 

6.         Maluku and Irian  Jaya

11 051.0

(87.73)

1 545.5

(12.27)

12 596.5

(100.00)

 

Indonesia

542 319.0

(82.23)

117 161.7

(17.77)

659 480.7

(100.00)

       

 

 

Table 3.a. Number of Establishment Without Legal Entity by Industry

 

Industry

1996

1998

1999

2000

2001

2002 *)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

 

1.        Mining and Quarrying;

Electricity, Gas, and Water Supply; Construction

 

357,426

(2.13)

237,037

(1.70)

214,334

(1.48)

248,842

(1.96)

287,657

(1.96)

267,340

(1.72)

 

2.        Manufacturing  Industry

 

2,859,304

(17.04)

2,179,064

 (15.59)

2,514,816

(17.32)

2,598,704

(14.72)

2,538,283

(17.31)

2,729,215

(17.55)

3.        Wholesale and Retail Trade, Restaurants and Accommodation Services

9,772,431

(58.24)

8,547,130

(61.16)

8,666,569

(59.69)

8,650,713

(61.15)

8,450,211

(57.64)

9,014,430

(57.96)

 

4.        Transport, Storage and Communication

 

1,833,648

(10.93)

1,595,110

(11.42)

1,695,933

(11.68)

1,855,149

(11.01)

1,765,050

(12.04)

1,934,743

(12.44)

 

5.        Financial Institution ; Real Estate, Rental Service and Other Services

 

1,957,822

(11.67)

1,415,914

(10.13)

1,428,389

(9.84)

1,627,030

(11.15)

1,619,444

(11.05)

1,605,866

(10.33)

 

All Sectors Except Agricultural Sector

 

16,780,631

(100.00)

13,975,255

(100.00)

14,520,041

(100.00)

14,980,438

(100.00)

14,660,645

(100.00)

15,551,594

(100.00)

*) = preliminary figures

 

 


Table 3.b. Number of  Establishment Without Legal Entity by Province

 

Island/

Province

1996

1998

1999

2000

2001

2002 *)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1.        Sumatera

2,744,345

(16.35)

2,285,053

(16.35)

2,182,568

(15.03)

2,228,518

(14.88)

2,208,110

(15,06)

2,306,317

(14.83)

2.        Java

a.       Jakarta, Cap. City

 

852,073

(5.08)

 

711,020

(5.09)

 

675,923

(4.66)

 

719,941

(4.81)

 

696,963

(4.75)

 

726,168

(4.67)

b.        West Java

3,472,506

(20.69)

2,901,883

(18.00)

3,035,152

(20.90)

2,969,114

(19.82)

2,886,209

(19.69)

3,059,513

(19.67)

c.         Central Java

2,899,288

(17.28)

2,515,013

(18.00)

2,781,586

(19.16)

2,893,016

(19.31)

2,891,273

(19.72)

3,354,375

(21.57)

d.        Yogyakarta

364,386

(2.17)

304,583

(2.18)

354,285

(2.44)

366,855

(2.45)

404,742

(2.76)

422,496

(2.72)

e.        East Java

3,470,711

(20.68)

2,879,439

(20.60)

3,012,492

(20.75)

3,199,556

(21.36)

3,074,286

(20.97)

3,118,886

(20.06)

3.        Bali and Nusa Tenggara

827,649

(4.93)

707,673

(5.06)

752,255

(5.18)

864,204

(5.77)

763,561

(5.21)

757,439

(4.87)

4.        Kalimantan

838,110

(5.00)

700,646

(5.01)

741,054

(5.10)

715,337

(4.78)

712,957

(4.87)

781,051

(5.02)

5.        Sulawesi

1,129,005

(6.73)

912,370

(6.53)

933,509

(6.43)

979,055

(6.54)

849,198

(5.79)

886,488

(5.70)

6.        Maluku and Irian  Jaya

182,558

(1.09)

56,575

(0.41)

51,217

(0.35)

44,842

(0.30)

173,346

(1.18)

138,861

(0.89)

Indonesia

16,780,631

(100.00)

13,975,255

(100.00)

14,520,0 41

(100.00)

14,980,438

(100.00)

14,660,645

(100,00)

15,551,594

(100,00)

*) = preliminary figures

Table 3.c. Number of Employees of Establishment Without Legal Entity by Industry

 

Industry

1996

1998

1999

2000

2001

2002 *)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1.           Mining and Quarrying ;

Electricity, Gas, and Water Supply ; Construction

981,365

(3.40)

655,311

(2.52)

513,027

(1.92)

601,478

(2.17)

699,243

(2.57)

619,101

(2.17)

2.           Manufacturing  Industry

6,598,136

(22.85)

5,287,418

(20.32)

6,116,269

(22.89)

6,291,441

(22.74)

6,110,058

(22.46)

6,567,531

(22.97)

3.           Wholesale and Retail Trade, Restaurants and Accommodation Services

15,821,781

(54.79)

15,626,299

(60.06)

15,523,324

(58.11)

15,735,642

(56.88)

15,417,018

(56.67)

16,255,171

(56.85)

4.           Transport, Storage and Communication

2,307,338

(7.99)

1,993,332

(7.66)

2,109,176

(7.90)

2,281,481

(8.25)

2,184,697

(8.03)

2,350,957

(8.22)

5.           Financial Institution ; Real Estate, Rental Service and Other Services

3,167,802

(10.97)

2,457,816

(9.45)

2,454,062 (9.19)

2,754,648

(9.96)

2,793,640

(10,27)

2,801,344

(9,80)

All Sectors Except Agricultural Sector

28,876,422

(100.00)

26,020,176

(100.00)

26,715,858

(100.00)

27,664,690

(100.00)

27,204,656

(100.00)

28,594,104

(100.00)

 

*) = preliminary figures

 


Table 3.d. Number of  Employees of Establishment Without Legal Entity by Province

 

Island/

Province

1996

1998

1999

2000

2001

2002 *)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

1.           Sumatera

4,921,289

(17.04)

4,512,467

(17.34)

4,274,659

(16.00)

4,304,381

(15.56)

4,169,481

(15.33)

4,476,423

(15.66)

2.           Java

a.          Jakarta, Cap. City

1,575,571

(5.46)

1,475,955

(5.67)

1,354,297

(5.07)

1,416,453

(5.12)

1,422,523

(5.23)

1,450,263

(5.07)

b.          West Java

5,620,031

(19.46)

5,114,130

(19.66)

5,178,661

(19.38)

5,330,645

(19.27)

5,299,525

(19.48)

5,234,267

(18.31)

c.           Central Java

5,002,881

(17.33)

4,520,048

(17.37)

5,086,584

(09.04)

5,284,228

(19.10)

5,228,412

(19.22)

6,197,671

(21.67)

d.          Yogyakarta

643,167

(2.23)

556,731

(2.14)

623,776

(2.34)

661,964

(2.39)

744,396

(2.74)

808,187

(2.83)

e.          East Java

5,804,185

(20.10)

5,106,646

(19.63)

5,422,836

(20.30)

5,569,464

(20.13)

5,492,120

(20.19)

5,437,317

(19.02)

3.           Bali and Nusa Tenggara

1,484,531

(5.14)

1,351,494

(5.19)

1,415,579

(5.30)

1,687,284

(6.10)

1,389,436

(5.11)

1,423,394

(4.98)

4.           Kalimantan

1,513,481

(5.24)

1,356,565

(5.21)

1,496,588

(5.60)

1,507,297

(5.45)

1,462,591

(5.38)

1,620,684

(5.67)

5.           Sulawesi

1,949,624

(6.75)

1,697,103

(6.52)

1,752,840

(6.56)

1,800,091

(6.51)

1,605,868

(5.90)

1,663,930

(5.82)

6.           Maluku and Irian  Jaya

361,662

(1.25)

329,037

(1.27)

110,038

(0.41)

102,883

(0.37)

390,304

(1.43)

281,968

(0.99)

Indonesia

28,876,422

(100.00)

26,020,176

(100.00)

26,715,858

(100.00)

27,664,690

(100.00)

27,204,656

(100.00)

28,594,104

(100.00)

 

*) = preliminary figures