In Indonesia, 36.3 million other female informal workers follow a routine similar to Wati. Their significant yet often overlooked contributions highlight the need to redistribute care work to enhance women’s productivity.

Many Indonesian women perceive informal work as a “win-win” solution as it enables them to contribute financially to their household and simultaneously manage domestic responsibilities. A recent study of women’s informal employment in the digital economy by MicroSave Consulting (MSC) and the Women Empowerment and Child Protection Ministry showed that approximately 66 percent of female informal workers, particularly those of reproductive age, chose informal jobs because of flexible hours.

However, this flexibility often means longer work hours. Our study also revealed that 60 percent of female informal workers spent more than 40 hours per week on paid work and more than 20 hours weekly on care work. Despite the extensive hours, their income remains low and unstable, with most earning less than Rp 3 million (US$185) per month.

They also lack a safety net, such as benefits for work-related injuries and death, as most of them are not registered with the national social security scheme, BPJS Ketenagakerjaan.

In an ideal world, women should not have to bear the cost of care work alone. It should be a productive activity that reduces women’s care burden and be redistributed to other family members, employers and the government. Comprehensive and inclusive care policies should also be available to help women.

A study by the International Labour Organization (ILO) estimated that, by 2035, Indonesia could create 10.4 million jobs, increase the female employment rate to 56.8 percent, and reduce the gender wage gap to 10 percent if the government invested in universal childcare, long-term care and a comprehensive care policy package. 

The first half of 2024 has seen progress in the improvement of Indonesia’s care economy. In March, the women empowerment ministry and the ILO launched a road map for the care economy. This document outlines seven priorities: Childcare, elderly care, inclusive care, maternity leave, paternity leave, fair working conditions for care workers and social protection related to care work.

The road map seeks to guide policy formulation across ministries and agencies that will align with the country’s Long-Term National Development Plan.

Another important milestone is the recent passage of the Maternal and Child Welfare (KIA) Law. The law regulates maternal and child rights in the first 1,000 days of a child’s life, family responsibilities and the government’s duties and authority.

The law stipulates that mothers are entitled to three months of paid maternity leave, with an additional three months available under special circumstances. Fathers are entitled to two days of paternity leave during childbirth, which can be extended for up to three additional days or as mutually agreed upon with the employer.

However, despite its positive intentions, the law can be improved significantly. For instance, the stipulated paternity leave is below the global average of nine days and the Asia-Pacific average of seven days. Additionally, the paid maternity leave regulation is designed only with formal sector workers in mind, where the employer pays for the leave and the leave is agreed upon in the work contract.

This can put female informal workers at a disadvantage. Informal workers, such as homeworkers, often lack legal contracts and formal employers. They typically receive work orders from various employers through an intermediary party without any physical contracts.

The government can implement several measures to address the disproportionate burden of care work on female informal workers. Here are a few possible measures:

First, strengthen policies on paternity leave. The government should introduce substantial paternity leave policies to encourage men’s involvement in childcare. In other developing countries, such as Myanmar and Uruguay, the government offers more than 10 days of paid paternity leave through social insurance. This approach helps alleviate the pressure on female workers and supports a more balanced distribution of care responsibilities.

A public perception survey on maternity and paternity leave in Indonesia shows that people wish to get month-long paternity leave, which suggests strong support for such initiatives. Indonesia can implement similar policies to foster a more balanced distribution of care responsibilities and enable fathers to participate actively in child-rearing.

Additionally, the government, in collaboration with relevant stakeholders, should launch social campaigns to normalize men’s involvement in caregiving activities. The government can promote men’s participation in school events and care for sick children and create an encouraging office culture that embraces care leave. Such initiatives can challenge traditional gender roles and encourage a more equitable sharing of care duties.

Second, develop affordable public childcare. The study by MSC and the women empowerment ministry also found that about 59 percent of female informal workers lacked access to reliable and affordable childcare services. The government can develop several models of childcare services to cater to different segments of the population.

One such model is community-based childcare, which can emerge as an affordable alternative. It creates local job opportunities and fosters community trust and collective responsibility. This model can enhance accessibility for informal workers.

Indonesia has a National Daycare Standard in place. However, its implementation needs to be expanded and monitored across various types of daycare facilities. Adherence to these standards will be crucial to maintain quality and meet the diverse needs of families. The government can also subsidize daycare fees for informal workers as their income tends to be relatively low and unstable.

Third, prepare infrastructure and policies for elderly care. In the future, we must shift our focus beyond childcare provisions. Indonesia’s demographic dividend will slow down in 2030 as the aging population increases.

Given the country’s aging population, the development of comprehensive care policies and infrastructure for older people is vital. This aspect of care work is often overlooked but has become increasingly important, as is evident in many other developed and developing nations.

The government should provide the necessary infrastructure and policies supporting the elderly to ensure that the burden of elderly care does not fall disproportionately on informal female workers. Programs, such as the Family Hope Program (PKH) at the national level and Jakarta’s Kartu Lansia (Elderly Card) at the subnational level have already started to offer social assistance for the elderly. However, such efforts need to be intensified further.

Like Wati, countless Indonesian women have their contributions to the economy undervalued and unsupported. Indonesia must redefine its economic landscape to acknowledge and address this gender disparity and seek avenues to achieve a more equitable, inclusive and prosperous nation.

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Rhifa Ayudhia and Jilan Zahra Jauhara are an analyst and associate, respectively, at MicroSave Consulting (MSC). Raunak Kapoor, Rahul Ganguly, Vaishali Patra and Padma Angmo also contributed to the article.