The Role of the Informal Sector as a Buffer of Employment Absorption in Indonesia
DOI:
https://doi.org/10.59890/ijfbm.v3i6.133Keywords:
Informal Sector, Employment, Political Economy, Development, IndonesiaAbstract
This study aims to analyze the role of Indonesia’s informal sector as a buffer for employment absorption within the political economy of development framework. Using a qualitative descriptive approach and secondary data from BPS, ILO, and World Bank, the study finds that 59.40% of Indonesia’s workforce is employed in the informal sector, serving as a crucial absorber during economic shocks. However, informal workers face unstable income and limited access to protection. Based on Elite Theory, the findings reveal that elite power concentration and limited resource access perpetuate structural inequality. Therefore, inclusive public policies are needed to strengthen protection and formalization.
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Copyright (c) 2025 Salsabila Adawiyah, Dellya Sulianti, Perry Herdiansyah, Hafied Maulana Ibrahim, Selfiany Goretty, Rina Melliza
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