Breaking Out of the Long Shadow of the Economy – Mon, Aug 29, 2022


Citra Handayani Nasruddin (Jakarta Post)

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Jakarta
Monday, August 29, 2022

Economic informality increases during crises, including in Indonesia, where the 2020 pandemic hit. However, these so-called hidden economies are associated with limited skills, low productivity, high poverty rates and lack of suitable jobs. And in most emerging markets like Indonesia, informal work is more common among women.

Amid persistent global uncertainty and rising risks of recession, the pervasive shadow economy is hampering an inclusive recovery, and the informal economy that facilitates the transition from the shadow economy to the legitimate one. A policy package is needed to address the complexity.

The idea that women are the backbone of the Indonesian economy is widely accepted. This is due to the fact that women dominate micro, small and medium enterprises (MSMEs), which account for about 62% of GDP, or about Rp8.6 trillion (US$580 billion), and absorb about 90% of the total workforce. is. More than half of her 64 million SMEs in Indonesia are women-owned businesses, but most belong to the micro and small sector and operate informally.

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