Hello, friend Summarized! Have you ever felt that the salary you receive in Indonesia is not worth the work you do? Have you ever thought about working abroad for a higher salary? If yes, then this article is suitable for you to read. This time, we will discuss the reasons why salaries in Indonesia are lower than abroad. Check out the explanation below!
Economic Factors
One of the main factors that affect the amount of salary is the economic condition of a country. In general, countries that have more advanced and stable economies will provide higher wages to their workers. This is because these countries have higher purchasing power, higher productivity, and better welfare.
Meanwhile, countries that have less developed economies and are prone to crises will provide lower wages to their workers. This is because these countries have lower purchasing power, lower productivity, and poorer welfare.
Indonesia is included in the category of developing countries that are still facing various economic challenges, such as inflation, poverty, inequality, corruption and debt. According to World Bank data, in 2020, Indonesia’s per capita Gross Domestic Product (GDP) is $4,135, while the United States’ per capita GDP is $63,416. The difference is very far, right?
Educational Factors
Another factor that affects the amount of salary is the level of education and skills of workers. In general, workers who have higher education and skills will also receive higher salaries. This is because the worker has added value and better competence in the eyes of the employer.
Meanwhile, workers who have lower education and skills will also receive lower salaries. This is because the worker has added value and lower competence in the eyes of the employer.
Indonesia still faces problems in terms of the quality of education and the skills of its workers. According to UNESCO data, in 2019, the adult literacy rate in Indonesia was 96%, while the adult literacy rate in the United States was 99%. In addition, according to data from the World Economic Forum, in 2020, Indonesia is ranked 72nd out of 133 countries in terms of the Human Capital Index (HCI), while the United States is ranked 24th.
Legal Factors
The next factor that affects the amount of salary is the legal system and regulations that apply in a country. In general, countries that have strong and fair legal and regulatory systems will provide better protection and rights to their workers. This is because these countries respect human rights, democracy, and social justice.
Meanwhile, countries with weak and unfair legal and regulatory systems will provide worse protection and rights to their workers. This is because these countries ignore human rights, democracy, and social justice.
Indonesia still faces problems in terms of law enforcement and worker protection. According to Transparency International data, in 2020, Indonesia is ranked 102nd out of 180 countries in terms of the Corruption Perception Index (CPI), while the United States is ranked 25th. In addition, according to data from the International Labor Organization, in 2019, the minimum wage in Indonesia is $140 per month, while the minimum wage in the United States is $1,256 per month.
Conclusion
From the explanation above, we can conclude that there are several factors that cause salaries in Indonesia to be lower than abroad, namely economic factors, educational factors, and legal factors. Of course, this doesn’t mean we have to give up and give up on existing conditions. We must keep trying to improve the quality of ourselves, both in terms of education, skills, and work ethics. We must also continue to support the efforts of the government and society to improve the economic, legal and social conditions in our beloved country.
Thus this article about why salaries in Indonesia are lower than abroad. Hopefully this article is useful and adds to your insight. If you have questions, suggestions, or criticisms regarding this article, please write them in the comments column below. Thanks for reading and see you in the next article!
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