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Jakarta Post

Fewer companies will hire new employees this year as automation grows: Survey

  • Made Anthony Iswara

    The Jakarta Post

Denpasar, Bali   /   Thu, January 2, 2020   /  12:32 pm
The Jakarta Post Image
Employees work on concrete mold frames for the construction of the high-speed Jakarta-Bandung railway at a factory in West Bandung regency, West Java.(Antara/Raisan Al Farisi)

Salaries in Indonesia are expected to increase 8.7 percent across various industries in 2020, slightly higher than the 8.3 percent rise in 2019, yet fewer companies are planning to recruit new employees amid growing interest in automation, a recent survey projected. Only 36 percent of companies plan to recruit new employees in 2020, a drop from 43 percent in 2019, according to the December report titled “Total Remuneration Survey 2019” published by global consulting firm Mercer, which surveyed 569 companies across various industries in Indonesia. “While automation and artificial intelligence create and alter jobs, [employers] are increasingly struggling to fulfill salary expectations and [labor] market value,” the company wrote in its press release received by The Jakarta Post on Dec. 30. Mercer Indonesia's career business leader Astrid Suryapranata c...