世界银行-印度尼西亚的非正规性：水平、趋势和特点（英）-2023.10-39页_1mb

Summary of Informality in Indonesia

Indonesia exhibits high levels of informality despite a declining trend, with output informality averaging around 35% of GDP and employment informality exceeding 50% of total employment, remaining above regional and global EMDE averages. Informality is concentrated in agriculture and low-skilled services, associated with higher provincial poverty levels (e.g., Papua and West Sulawesi) and significant productivity, education, and salary gaps between formal and informal workers. Markets are not segregated, as informal firms compete intensely with formal firms.

Compared to other EMDEs, Indonesia faces macroeconomic challenges, including low tax effort (revenues below EMDE averages) and limited financial sector depth, constraining public spending on development programs. Informality acted as a buffer during the COVID-19 shock by mitigating job losses at an aggregate level, but it hindered individual recovery and economic stabilization.

Key findings emphasize that informality is not solely due to exclusion but includes both necessity and choice drivers, with policy responses needed to address underlying factors like poor governance, regulatory burdens, and access to finance. Overall, informality remains a critical development challenge in Indonesia, requiring targeted policies to reduce its pervasive effects while considering its role in economic resilience and job creation.

Contributions: This study provides multidimensional estimates at regional, provincial, and sectoral levels, enhancing understanding beyond traditional aggregate measures and offering insights for policy design in similar contexts.