Wage Gap in Indonesia

Definition of the Wage Gap

The wage gap is a statistic which is primarily used to measure women’s earnings relative to those of men in any particular nation. The wage gap can be used to compare the earnings of women against those of men so that any instances of wage discrimination can be discovered. Globally, men are paid approximately 16.1% more than women. However, the exact figures differ between countries.

Indonesia’s Wage Gap

According to the latest statistics as published by the Gender Development Index of the United Nations, the average man who works in Indonesia earns approximately US$14,385 every year, while the average woman who works in Indonesia earns approximately US$7,259 every year. This means that the average man in Indonesia is paid 98.2% more than is the average woman. One possible reason for this fact is misogyny on the part of male employers which leads them to act in a discriminatory manner against their female employees. However, some experts believe that the pay gap disparity does not necessarily imply that women are paid lesser than men because of misogyny and discrimination but because of the lower number of women working at higher-paying positions, which in turn leads to the average salary of women in the country to be lower.

However, the wage gap in Indonesia is narrower than those of several other notable countries. Some countries with a larger wage gap include Turkey at 120.3%, South Korea at 118.4%, Mexico at 106.7%, Bosnia at 105.3%, and Argentina at 100%.

Industries in Indonesia with the Largest Wage Gaps

Different industries will have different wage gaps. Such wage gaps may depend on the number of women in more senior positions or the technicality of the jobs in which women are prevalent. Certain industries, however, are known for having larger wage gaps than others; such is also the case in Indonesia.

In Indonesia, the industry with the largest wage gap is the financial industry; this includes insurance companies as well as banks and other financial institutions. Civil service in Indonesia also has a large wage gap, as do jobs in law, engineering, science, technology, and healthcare.

One major problem lies in the fact that even in companies in Indonesia which are mostly staffed by women, the wage gap is still extremely evident. This is because even though such companies primarily employ women, most of the senior positions in the company as well as the industry in general are typically held by men instead of women. This causes the average wage paid to men who work in Indonesia higher than the average wage of their female counterparts.