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Indonesia salary guide: What you should be paid in 2019

With the continued entry of multinational companies and expansion of local businesses, significant hiring activity was observed across most industries in Indonesia in 2018. The burgeoning technology sector led to the recruitment of senior-level tech talent, as well as marketers with digital experience.  According to a report by Robert Walters, salaries continued to rise in 2018, with job movers commanding average increases of 20-25%.

In 2019, there will be a similar upward trend in recruitment.  Skilled IT talent will be in great demand due to heavy investment in e-commerce and digitalisation.

Salaries will continue to rise in 2019, with job movers likely to be able to receive similar average rises of 20-25%.

The government’s continued efforts to attract foreign direct investment will see more new entrants in Indonesia, while local businesses are expected to push ahead with expansion plans to acquire greater market share.

Hiring in sales and marketing

In 2019, Robert Walters expect a fairly robust recruitment market in sales and marketing. In fact, hiring of sales and marketing professionals in Indonesia was steady in 2018. The increasing affluence of the general population led to an increase in purchasing power, leading to an increased demand for more premium products.

The report also saw the e-commerce start- up ecosystem grow rapidly leading  to increased demand for new talents and skills in digital. In 2019, majority of roles are expected to be replacement positions as a result of company restructuring and establishment of new e-commerce divisions in companies.

Local companies are also becoming increasingly competitive, growing quickly and becoming highly professional organisations vying for top talent. This will drive strong demand for sales and marketing professionals with digital expertise, good communication skills and a combination of strategic and operational abilities. Local candidates with overseas experience will also be in high demand.

However, the demand for professionals with e-commerce experience will outweigh supply due to the shortage of talent in the domestic market. Hiring managers will need to ensure continuous engagement with prospective and existing  employees by focusing on long-term career development plans.

“Hiring managers will need to be more decisive to sustain the interest of strong candidates, especially when recruiting for niche roles,” the report added. To retain talent, hiring managers should ensure they meet the needs of high performers with long-term career development plans in place. They will also need to identify and leverage the key motivations of the employees, especially the younger workforce which is less motivated today by traditional factors such as job security.

In such a competitive market, having proactive conversations about career progression opportunities will ultimately prove more effective in retaining employees than making counter-offers and only acknowledging employees’ true market value after they have resigned. In 2018, professionals changing jobs enjoyed average salary increments of 20-30%, which has been the general trend over the last five years. This trend is expected to continue in 2019, with good talent driving up this figure by commanding above-market salaries.

Tech drive

There was strong hiring activity in the tech sector in 2018, driven by the continued growth of e-commerce start-ups and increasing digitalisation efforts.

This resulted in a competitive and limited domestic talent pool, particularly due to the growthand success of Indonesia’s technology unicorn companies competing with smaller start-ups for top talent. options and equity schemes, will be increasingly important to attract and retain staff within the e-commerce industry. Salaries are expected to continue in 2019 as the demand for tech professionals outweighs supply.

Salaries for skilled tech candidates may increase by as much as 50%.

Professionals with skills in data science and analytics will be in high demand, especially those with the ability to manipulate big data and predict customer behaviour. Software developers, engineers and product managers will also be in high demand.

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