The phenomenon of overwork, defined as excessively long working hours, has become a reality for many workers in Indonesia. Data from the August 2025 National Labor Force Survey (Sakernas) released by Statistics Indonesia (BPS) show that 25.47 percent of the working population works more than 49 hours per week.
An economist from the Faculty of Economics and Business, Universitas Gadjah Mada (FEB UGM), Wisnu Setiadi Nugroho, S.E., M.Sc., Ph.D., stated that the prevalence of overwork in Indonesia, including the tendency to hold multiple jobs, is not driven solely by economic pressure.
“This phenomenon is the result of a combination of Indonesia’s labor market structure, which provides limited access to quality jobs, low levels of decent wages, and a high degree of labor informality,” he explained.
Impact of Overwork
This condition raises an important question: do longer working hours increase economic output, or do they instead reduce long-term productivity? Wisnu, a lecturer at the Department of Economics, FEB UGM, explained that, in theory, longer working hours can increase short-term output by increasing total hours worked. However, empirical evidence from labor studies shows that productivity per hour does not automatically increase with longer working hours.
Several international studies indicate that although workers in Indonesia often work more than the standard 40 hours per week, labor productivity per hour remains relatively low compared to other ASEAN countries.
“Ultimately, it is thought that extended working hours will reduce effectiveness per hour due to fatigue, decreased concentration, and increased health and safety risks in the workplace,” he said.
The Need to Review Wage Policies
Wisnu also outlined several measures the government should consider to address overwork. One key step, according to him, is to review wage policies so they do not encourage overwork. Overwork often occurs because workers seek additional income that their low-paying primary jobs cannot provide.
An initial measure is to promote decent wages and wage formulas that account for productivity. The government needs to ensure that minimum wage policies are not based solely on inflation, but also take into account regional productivity and decent living standards. Many studies in both developed and developing countries show that strong minimum wage policies tend to reduce excessive working hours and discourage multiple job-holding.
“Evidence shows that minimum wage policies in Indonesia can reduce average working hours while increasing workers’ real wages,” he noted.
Furthermore, the government plans to reorganise the regulations surrounding part-time work and overtime. Under the Job Creation Law (Omnibus Law), regular working hours are limited to 8 hours per day or 40 hours per week, while overtime is limited to 4 hours per day or 18 hours per week. However, implementation remains fragmented across sectors.
Ideally, there should be an integrated system to monitor individual working hours. Law enforcement and regulatory compliance are crucial to prevent the exploitation of working hours without fair compensation,” he said.
Wisnu added that improving workers’ skills and productivity is another crucial step. Through the Ministry of Manpower, the government can promote vocational training, upskilling, and reskilling programs to enhance labor productivity. Higher productivity can reduce the need for long working hours, as output value per hour increases.
Indonesia has experienced significant job growth in recent years. Approximately 4.8 million new jobs emerged in 2024 alone, and around 18 million jobs appeared between 2018 and 2024. However, more than 80 percent of these jobs were in the informal sector, such as household enterprises, small traders, and freelance work. In contrast, formal employment in large corporations or the public sector remains limited.
“As a result, many workers are in unstable positions with low wages, no social protection, and limited career prospects,” he explained.
A study by Wisnu and his team found that the average starting wage for Indonesian workers was around IDR 1.6 million per month. It is far below a decent living standard and lower than formal-sector wages.
“These low-wage conditions force many workers to seek additional jobs to meet their families’ basic needs. Another option is to work excessively long hours, even when the main job does not provide sufficient working time, or to combine several part-time jobs to earn an adequate income,” he elaborated.
This finding aligns with BPS studies using Susenas data, which show that more than one-quarter of workers hold multiple jobs, often with significant additional working hours beyond their primary employment. Meanwhile, BPS data from February 2025 indicate that around 33.8 percent of the workforce works fewer than 35 hours per week, meaning they do not meet full-time employment standards.
Overall, only about 66 percent of workers are employed full-time (35 hours per week or more), while the remaining approximately 49.29 million people work part-time, including those with minimal working hours.
“Workers with insufficient hours often seek second or third jobs because their primary employment does not provide a decent livelihood,” he explained.
Beyond wage issues, Wisnu emphasized the importance of social security schemes such as BPJS Employment and BPJS Health, which are often inaccessible to informal sector workers. As a result, workers must bear health and occupational risks out of pocket. The absence of social protection further encourages workers to seek additional jobs to cover these costs.
“In this context, the role of BPJS Employment in providing broader and stronger social protection is highly relevant,” he concluded.
Reportase: Kurnia Ekaptiningrum
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