Wati, a 40-year-old online ride-hailing driver in Makassar, wakes up at 5 a.m. to cook and prepare her children for school. She takes them to school by motorcycle and then starts her ride-hailing job. At 1 p.m., she returns home to do household chores and pick up her children from school. After she drops them off, she works until 6 p.m., prepares dinner, and looks after her children. 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 Ministry of Women Empowerment and Child Protection (MoWECP) showed that approximately 66% of female informal workers, particularly those of reproductive age, choose informal jobs because of flexible hours. However, this flexibility often means longer work timings. Our study also revealed that 60% of female informal workers spend more than 40 hours weekly 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 IDR 3 million (~185 USD) 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 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%, and reduce the gender wage gap to 10% if the government invests 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 MoWECP 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 Act (UU KIA). UU KIA 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 Act 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 Act 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:
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 a 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 leaves. Such initiatives can challenge traditional gender roles and encourage a more equitable sharing of care duties.
Develop affordable public childcare: The study by MSC and the MoWECP also found that about 59% of female informal workers lack 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. It can also reduce the stigma around women who place their children in daycare centers to pursue work, as it involves the community’s participation.
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, particularly those of female informal workers in need of reliable childcare. The government can also subsidize daycare fees for informal workers as their income tends to be relatively low and unstable.
Prepare infrastructure and policies for elderly care: Moving forward, 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 Program Keluarga Harapan (Family Hope Program) 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. The government can follow the examples of other developing countries, such as Chile or Uruguay, and provide subsidized long-stay residences, day centers, and teleassistance for the elderly.
Wati’s story reflects countless Indonesian women whose contributions to the economy remain undervalued and unsupported. These women are the backbone of their households and communities yet endure grueling conditions and limited social protection. Indonesia must redefine its economic landscape to acknowledge and address this gender disparity. It can implement robust paternity leave, foster men’s involvement in caregiving, invest in community-based care infrastructure, and prepare elderly care infrastructure to alleviate the burdens women face and unlock its workforce’s full potential. Such measures are vital to achieve a more equitable, inclusive, and prosperous nation.
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Rhifa Ayudhia and Jilan Zahra Jauhara are Analyst and Associate, respectively, at MicroSave Consulting (MSC). This article also features contributions from Raunak Kapoor, Rahul Ganguly, Vaishali Patra, and Padma Angmo.
