International Journal of Psychosocial Rehabilitation, Vol.

24, Issue 09, 2020

ISSN: 1475-7192

EMPLOYMENT ANALYSIS DISTRICT/CITY OF RIAU ISLANDS

PROVINCE CITY EMPLOYMENT ANALYSIS DISTRICT/CITY
PROVINCE OF RIAU ISLANDS

Jontro Simanjuntak ¹, Putu Hari Kurniawan ², Chablullah Wibisono ³*

Abstract-The purpose of this study is to explain the conditions of employment in the Riau Islands Province in 2014,
which has decreased both the labor force and those who work and also increase the number of unemployed. The
implementation of this research activity took place at the Regional Development Planning Agency (BAPPEDA) of the
Riau Islands Province. The research method was done by observing secondary data with data from the Central
Statistics Agency. This research is a descriptive study. Based on the results of the research, the highest number of the
urban labor force is in Batam. The working-age group at the 15-44 years old have a more significant number than the
age group above 45. Age groups by sex are more male workforce than the female workforce. Workforce education is
more high school graduate education. Riau Islands has a workforce absorption of 896, 931 people with an
unemployment rate of 69,160 people. The highest district/city labor force participation rate (TPAK) is the Anambas
Island District. The highest occupation is the labor/employee employment field. Young male sex groups dominate the
conclusions of the number of workforce and labor force participation. Batam is one of the most significant contributors
to the workforce. The industry, trade, and hotel business sectors are the highest contributors to absorbing sports.

Keywords: Labor Force, Labor Force Participation Rate, Unemployment, Main Employment Field.

I. INTRODUCTION
Labor is all matters relating to labor before, during, and after work. National development is carried out
in the context of full Indonesian human development and the development of Indonesian society as a whole
to create a prosperous, just, prosperous, equitable society, both material and spiritual, based on Pancasila and
the 1945 Constitution of the Republic of Indonesia. Implementation of national development, workers, have
a significant role and position as actors and development goals. The role and position of the workforce,
employment development is needed to improve the quality of the workforce and its participation in
development and to improve the protection of workers and their families following human dignity (Law No.
13 of 2003). The central and regional governments as Fitbit policymakers to participate fully to open up
employment opportunities so that the utilization of human resources in Indonesia, including in the Riau
Islands Province, can be optimally absorbed. Riau Islands Provincial Government, as one of the youngest
provinces in Indonesia, of course, in practice must provide a variety of supporting infrastructure along with a
set of regulations that can support the creation of new job opportunities that will be absorbed by the people
of the Riau Islands themselves.
Local government policy, in this case, the Riau Islands Provincial Government, will not produce optimal
performance outcomes if it is not supported by seriousness and improvement in the quality of human
resources of the Riau Islands community. This means that synergic cooperation between policymakers is
needed, namely the Riau Islands Provincial Government and the seriousness of improving the quality of
community human resources as stakeholders of the Riau Islands by increasing education and work skills
independently. The employment situation in Riau Islands Province in 2014 experienced a decline in both the
labor force and those who worked and experienced an increase in unemployment. The number of workers
decreased by 26,854 a year from 2013. The population of employed also decreased by 29,004 people.

II. LITERATURE REVIEW

Soleh (2017) explained that the condition of labor demand in Indonesia, the Indonesian labor market
experienced a reasonably good development; this is evidenced by the increase in the number of jobs and a
1
Jontro Simanjuntak is doctoral student of Faculty of Social Sciences and Humanities at Putera Batam University. Email:
jontrosimanjuntak@yahoo.co.id
2
Putu Hari Kurniawan is doctoral student of Faculty of Social Sciences and Humanities at Putera Batam University. Email:
harifebby@gmail.com
3 Chablullah Wibisono* is doctoral student of Faculty of Economics, University of Batam, Indonesia. Email:
chablullahwibisono@gmail.com
*Correspondence email:chablullahwibisono@gmail.com
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decline in open unemployment at the same time as population growth is quite high. Even though labor
demand always fluctuates every period and year, there are various seasonal factors, labor market turnover,
and the world economic climate. In general, to overcome the problems relating to labor and unemployment
in Indonesia can be done with the following strategies, namely increasing the competence and productivity
of labor to enter the labor market through harmonization.
The role of the Riau Islands Province Government will be essential, given the population growth of
the Riau Islands Province is expected to continue to rise in the future. Absorption of the budget to improve
the quality of human resources in the Riau Islands Province has become an urgent matter in the competitive
digital era. Community participation in the Riau Islands Province is also expected to work independently by
entering the micro and medium business market. This is because the work labor market that the community
wants to enter does not only rely on the public sector, such as the government sector but also to become civil
servants and the military or police. Swaramarinda (2014) explained that unemployment that occurred in
Jakarta caused poverty to increase and was seen in various regions. A slowdown in worker growth causes an
increase in unemployment in various developing countries compared to the acceleration of labor force
growth. Various policies need to be prepared by local governments that can increase the absorption of
unskilled labor to protect the poor and reduce unemployment.
Baskoro & Kuntoro (2017) concluded that young male age groups dominate the number of the labor
force and the labor force participation rate in East Java. Surabaya is one of the cities contributing to the most
significant workforce with the most populous population. Triono (2017) Research explains that an increase
in the rate of population growth and the labor force in the city can be seen that the number of populations
that increases each year turns out to have a direct relationship with the number of unemployed. An increase
in population will increase unemployment. This indicates a positive and robust relationship between
population and unemployment. An increase in population will result in a surge in the workforce. Likewise, a
surge in the labor force will increase labor absorption, if all workforce meets the criteria for labor demand.
Muhdar (2015) explains the results of research that Overcoming the Problems of Employment and
Unemployment can be done in a way first, in national development, macroeconomic policies that rely on
synchronizing fiscal and monetary policies are directed at creating and expanding employment opportunities.
The synergy of central government policies with the policies of the provincial and district/city governments
constitutes a mutually supporting unit for the creation and expansion of employment opportunities.
Junaidi & Zulfanetti (2016) explained that the abundance of the existing workforce without being
matched by an adequate number of labor needs would impact the low selling value of the existing workforce.
If this is not resolved immediately, it will create unemployment and weaken the economy. Based on the
background described above, this study will analyze employment in 2017 in the Riau Islands Province using
data obtained from the Regional Development Planning Agency (BAPPEDA) of the Riau Islands Province
and Data from the Central Statistics Agency.

III. DATA COLLECTION

The implementation of this research activity took place in the regional development planning agency
(BAPPEDA) of the Riau Islands Province. The research method is by observing secondary data from
BAPPEDA in the Riau Islands Province and with data from the Central Statistics Agency. This research is a
descriptive study. The analysis is carried out using the interpretation of the results and discussion. The results
of the 2017 data will be combined assumptions with the results achieved in the future using trend analysis
that can be used in policymaking.

IV. ANALYSIS DATA

Number of Labor Force, Population Number, and Education by City and Regency of Riau Islands
Province
Table 1 is a workforce data of the population of each city and regency in Riau Islands Province in
2017 based on survey data obtained from the Central Statistics Agency (BPS) of Riau Islands 2019.

Table 1
Labor Force Data and Population Amount

The region Total Labor Force Total population

Riau islands 966,091 2,082,694

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Karimun 100,824 229,194

Bintan 67,678 156,313
Natuna 36,901 76,192
Phallus 40,800 89,330
Anambas Islands 18,944 41,412
Batam 605,518 1,283,196
Tanjung Pinang 95,426 207,057
Source: BPS Kepri, 2019

Based on table 1 above, the highest number of the labor force in Riau Islands Province is in Batam
605,518 people, with a total population of 1,283,196 people living in the city. WhileTanjung Pinang, as the
provincial capital city, has a workforce of 95.426 people with a population of 207,057 people. While the
regency, Karimun is a district with a workforce of 100,824 people with a population of 229,194. While the
district with the lowest labor force is the Anambas Islands, with 18,944 people with a population of 41,412
people.
A young age group is a group that is relatively dynamic in various aspects, especially in mobility. The
younger age group tends to move to get the best education or employment. Population structure in Riau
Islands Province in 2017 can be seen in the following table:
Table 2
Structure of Working Age Population by Age Group

Age group amount

15-19 133,788
20-24 183,041
25-29 237,164
30-34 240,975
35-39 202,927
40-44 148,427
45-49 100,599
50-54 69,679
55-59 49,230
60-64 32,616
65-69 20,513
70-74 12,732
75+ 10,991
amount 1,442,682
Source: BPS Kepri, 2019

Based on table 2 above, it can be seen that the working-age group in the Riau Islands at the age of 15 -
44 years has a higher number than the age group above 45 years. The age group of 15-44 years is 1,146,322
people. The age group of 45 years and over is 296,360 people.
The labor force by looking at the sexes of men and women in the Riau Islands in 2017. The workforce
of each region is usually dominated by the type of male workforce rather than the female workforce, can be
explained by the table below:
Table 3
The Labor Force Declines Male and Female Gender Age Groups

Workforce
Age group Male Girl
15-19 19,938 19,484
20-24 53,955 48,314
25-29 60,166 54,445
30-34 98,886 52,116
35-39 131,629 67,589

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40-44 78,284 44,862

45-49 71,493 25,313
50-54 47,393 16,934
55-59 23,726 18,074
60-64 24,458 9,032
amount 609,928 356,163
Source: BPS Kepri, 2019

Table 3 above shows that the labor force, according to an age group based on sex in the Riau Islands
Province is more male labor force is approximately 63.1% of the total workforce. The total male workforce
is 609,928 people, while the female workforce is 356,163 people.
Workforce by looking at education in the Riau Islands in 2017. Education in the labor force today for
the industry is the average high school education required, as shown in the table below:
Table 4
WorkForce According to Education

Level of education Total Labor Force

Workforce (Soul)
Never / Never Attended School 12,101
No / Not yet finished elementary school 84,326
Primary school 119,289
Middle School 140,811
High school 279,000
Vocational School 173,070
Diploma 39,748
University 117,746
amount 966,091
Source: BPS 2019

Based on table 4 above, the workforce's education is more high school graduates (279,000) or around
28.9% of the workforce. The lowest workforce education is never / never attended as many as 12,101 people
or as much as 1.3% of the total workforce.
Total Labor Force Participation Rate, unemployment rate, and the unemployment rate
The government often uses data on labor force participation rates as an indicator of the success of its
scholars in assessing employment in an area. Based on the Data of the Riau Islands Central Statistics Agency
about the workforce and not the workforce of the Riau Islands Province in 2017, the table below can be
explained.
Table 5
Number of residents from the workforce and non-labor force

Workforce Not the

The region WorkForce
Work Unemployment
Riau islands 896,931 69,160 488,678
Karimun 95,079 5,745 58,632
Bintan 62,212 5,466 41,142
Natuna 35,398 1,503 14,675
Phallus 39,484 1,316 23,080
Anambas Islands 17,962 982 9,193
Batam 558,154 47,364 289,566
Tanjung Pinang 88,642 6,784 52,390
Sources, BPS, 2019

Based on table 5 above, if you look at the status of the Riau Islands region, there are 896,931 people
with employment, with an unemployment rate of 69,160 people if based on the regions most contributing to
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employment and unemployment in the Riau Islands is the City of Batam with 558,154 people working and
47,364 people unemployed.
The lowest contributor to the labor absorption and retention force in the Riau Islands is the Anambas
Islands, with 17,962 people working and 982 unemployed people. So, it can be concluded that Batam City
has a potential economic contributor in the Riau Islands Province.
Table 6
Level Workforce Participation, Open Unemployment Rate, and Unemployment

The region TPAK Unemployment TPT

(%) (%)
Riau islands 64.72 69,160 7,16
Karimun 63.31 5,745 5.7
Bintan 62.34 5,466 8.08
Natuna 67.48 1,503 4.07
Phallus 66.37 1,316 3.23
Anambas Islands 69.28 982 5,18
Batam 65.25 47,364 7.82
Tanjung Pinang 62.19 6,784 7,11
Source: BPS Kepri 2019

Based on table 6 above, the Labor Force Participation Rate (TPAK) in Riau Islands Province shows
that the regency/city with the highest TPAK is Anambas Islands Regency at 69.28 the lowest TPAK is in
Tanjung Pinang City at 62.19. There are four regencies/cities with TPAK above the average of the Riau
Islands Province, namely Batam City, Lingga Regency, Natuna Regency, and Anambas Islands Regency.
Based on Table 6, it also explains that the highest contributor to open unemployment (TPT) is the Bintan
Regency, with a total TPT percentage of 8.08%. Regency or city, the lowest contributor to open
unemployment (TPT), is Lingga Regency with a TPT percentage of 3.23%.
Table 7
Population Aged 15+ Who Worked a Week Ago According to Status
The main job
Main Job Fields amount

Trying Alone 167,787

Trying to be assisted by Temporary Workers / Unpaid Workers 49,091
Work with Permanent / Paid Workers 29,302
Worker / Labor / Employee 585,197
Free Workers in Agriculture 3,690
Free Workers in Non-Agriculture 28,087
Unpaid Workers / Family Workers 33,777
amount 896,931

Based on table 7 above, the primary employment status in Riau Islands Province in 2017, the highest
in the labor/employment field of 585,197 people. The lowest primary employment status is free employment
in Agriculture by 3,690 people. This shows that Riau Islands Province is an industrial area spread in Batam
City, Karimun, and Bintan Regencies, which are Free Trade Zone (FTZ) areas.

V. STUDY RESULTS, SUMMARY AND CONTRIBUTION

The number of Labor Force and Population-Based on Cities and Regencies in the Riau Islands.
Based on data from the Riau Islands Central Statistics Agency, the labor force correlates with the
population. They were settled in an area. Batam City has the highest number of labor force and population. If
based on regency, Karimum has the highest number of labor force and population. While the region which
has the lowest number of the labor force and population is Anambas Regency, based on these results it can
be concluded that the density of the population residing in the area is directly proportional to the number of
the existing workforce, where if the density of the population in the area is high then the existing workforce

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will be high, and vice versa if the density of the population in the area a little so the number of the workforce
is also small.
The population density in Batam can occur because Batam is an industrial center in the Riau Islands,
many industrial companies, both foreign-owned and domestic private. Besides, Batam is also the largest
trading center in the Riau Islands Province. Batam is also an office center, although Batam is not a provincial
capital. Based on this, there will undoubtedly be many migrants from outside Batam looking for work. In
addition to the population of Indonesia, many foreigners only live in Batam. Based on BPS data, the
productive age of the population between 15 and 64 years still has high productivity. Based on statistical data,
the population of the Riau Islands Province in 2017 amounted to 2,082,694 people; from that population, the
productive age of the population was 1,398,446 people.
The ratio of male and female gender workforce groups in the Riau Islands is more significant than the
male gender population. Percentage of labor force population of males and females compared to 63: 37.
According to Tusianti & Abdurrahman (2018), to anticipate inequality based on gender or sex, at least three
factors play a significant role in boosting women's formal labor. The three variables according to the order of
most significant influence are industry share in GRDP, the average length of schooling, and workforce
receiving training. Labor-intensive industries should provide more significant opportunities for women.
Moreover, Indonesia is currently undergoing a process of transformation into the industrial sector.
While from the individual side, women must be given the highest opportunities in education and job training.
Increasing women's opportunities for higher education can increase economic growth.
The labor force based on education in Riau Islands Province has more than 452,070 high school /
vocational school graduates than graduates. This is because the workforce needs of industrial companies do
not require high thinking. Natural Research, Syamsul, (2016) states that the number of unemployed
graduates is more than that of unemployed vocational/high school graduates. This means that SMK / SMA
graduates are absorbed more by industry than graduate graduates. This happens because most of the
industrial sector in Indonesia does not need workers who are too smart. Staff who are too smart are
considered demanding, especially regarding salary, which makes the industry repeatedly think of recruiting
graduates. Let alone the industrial sector, small entrepreneurs (SME class), definitely prefer vocational/high
school graduates over undergraduate degrees. To guard the shop, do packaging, send goods, input data, and
other simple things. Moreover, instinctively, a scholar, does not want to be employed as a shopkeeper.
The unemployment rate in Riau Islands Province is equal to 69,160 people from the workforce as
many as 966,091 people. It can be concluded that the unemployment rate is minimal, at only 7.16% of the
workforce. This is because residents who work in the Riau Islands Province are dominant migrants who are
recruited from outside the Riau Islands to work in manufacturing, trading, and others. Probosiwi Research
(2016)There is a very close relationship between high unemployment and poverty. Factors affecting the
expansion of employment opportunities include the development of the population and workforce, economic
growth, and policies regarding the expansion of employment opportunities themselves. The highest
absorption of labor is employment as a Worker / Labor / Employee of 585,197 people. Riau Islands has three
regions as the Free Trade Zone, namely Batam, Bintan, and Karimun, in that area the most labor. Purwasih &
Yoyok (2017) explained that labor absorption is the real amount of labor employed in business units. The
industrial sector is one sector that functions to open up employment opportunities for the workforce.
Industrial Sector in Sidiarjo RegencyThe next five years, the number of workers absorbed in the industrial
sector continues to increase.
Rochmani, Yunastiti & Agustinus (2016) research also explains that the Government and business
actors need to pay more attention and promote economic support to the manufacturing industry sector, hotel
and restaurant trade, and agriculture compared to other sectors. This is because these three sectors rank in the
top three in their contribution to the pace of economic growth. These three sectors also provide the largest
share in employment.
Factors Affecting Job Opportunities
Job opportunities in the Riau Islands Province can go up and down depending on several factors.
These factors are divided into three factors, namely the first population growth factor. That a large
population will encourage a large workforce as well, conversely a small population will encourage a small
workforce. The second factor is the industrial sector, industry, and trade. The three sectors absorb more
labor-intensive labor. The labor force in Indonesia still has much unemployment spread across regions
throughout Indonesia, so it requires a labor-intensive business sector to absorb the workforce. Third Factor

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Economic conditions, right economic conditions will encourage investment into the area, so job
opportunities are higher.
Conclusion: Young age groups of male sex dominate the number of the labor force and labor force
participation in Riau Islands Province. Batam is one of the most significant labor force contributors and the
most populous city of its population and also Batam as economic support for the Riau Islands. The industrial,
trade, and hotel business sectors are the highest contributors to employment.
Suggestion: in this study that the most substantial unemployment is in Batam, it is necessary to
multiply the business sector by bringing in investors. The government needs to pay more attention to making
the business sector policies needed in Riau Islands is a labor-intensive sector.

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