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Take a Look into Salaries in 2020

Salary in 2020

For this past decade, Indonesia has measured a ten-year average annual GDP growth of 4.8 percent.

Indonesia is embracing a wave of optimism and investment that should propel the country to new heights in the decade to come. Since the presidential election was completed, the country’s macroeconomic stability, market size, and demographic profile are viewed as being much brighter.

Michael Page Indonesia specialises in the recruitment market; bringing the best companies and sharpest professionals together so that both sides achieve their greatest potential and capabilities by offering long-term support with a special consultative approach, specifically designed with each party’s requirements in mind.

Each year, Michael Page surveys to identify the recruitment trends, issues, and selling points within a country. In Indonesia’s case, around 5,000 data points from proprietary data and networks such as job advertisements and placements, job applicant confidence index, and insights from business leaders, along with interactions among industry professionals, were gathered.

At least 73 percent of workers believe they will take less than three months to find a new job in 2020, but a declining outlook emerges as a new decade approaches, according to the job applicant confidence index obtained by Michael Page: 61 percent foresee themselves having better career progression in 2020 whereas 75 percent thought so in 2019, and only 73 percent are positive about the job market in 2020 as opposed to 83 percent in 2019. In fact, 58 percent are inclined to work overseas in 2020.

Although 97 percent of the Indonesian workforce feels that they have self-determination at work and that their personal contribution is impactful to their company, 86 percent of professionals in Indonesia are working in harmonious workplaces with the top traits of being collaborative, a problem solver, and empathetic. Even 80 percent of professionals from non-tech industries feel that their companies are well adapted to digital transformation. Still, an ongoing sense of appreciation is lacking; 30 percent feel their potential is not maximised while 23 percent feel they are unfairly appraised and not given opportunities to voice their opinions at work.

Developing great relationships between leaders and their teams to ensure better results is improving slightly. Only 26 percent of the Indonesian workforce say their companies neglected their professional coaching and development. But at the same time, 30 percent say their management team didn’t make the effort to get to know them on a personal level, 40 percent feel they have no freedom to have a break during work hours, and one in three claims they have no flexibility to work outside their office.

To really know the considerations of accepting a new job, the survey has listed five of the top considerations in this matter, which are work culture and team dynamics, employee benefits, new challenges and industry exposure, maximisation of skills and abilities, as well as monetary benefits. This definitely aligns with the top factors for someone choosing to leave their job – a better job opportunity at another company, an unhealthy work culture, and a misaligned leadership style. Mostly, people would assume unsatisfactory monetary benefits would be the major reason for someone to resign, but up to 91 percent do not consider that as the main factor.

Respondents born between 1965 and 1980, or “Gen X”, would not have resigned if the employee engagement was strengthened and they would have received a a promotion. Meanwhile, “millennials,” those born between 1981 and 1996, believe training and development plans should have been scheduled, they should have got offered an elevated job title and had stronger employee engagement in order for them to choose to stay in their last company. Surprisingly, 94 percent would give honest reasons for leaving and 92 percent claimed they would give notice before their official resignation.

The top three hiring trends in business and financial services are investment and asset management firms – especially for research departments – then high hiring demand for wholesale, corporate, and commercial banking talent, and finally, digitisation and fintech continue to open up opportunities within the retail sector. Alternative investments and life insurance are trending skills that companies are seeking, moreover fixed income market specialists, compliance managers, risk managers, and relationship managers are roles companies seem to always need. There’s a common denominator here; fintech is part of the trending skills and highest roles in demand.

Below is the gross base salary range per month:

Chief Executive Officer
Minimum: Rp150 million
Median: Rp250 million
Maximum: Rp500 million

Risk Director
Minimum: Rp80 million
Median: Rp150 million
Maximum: Rp250 million

Relationship Manager (Corporate)
Minimum: Rp15 million
Median: Rp68 million
Maximum: Rp120 million

Consumer and retail’s top three hiring trends are efficiencies, e-commerce and digital transformation, especially in the electronics and consumer goods sectors. The beauty industry continues its ascent, burgeoned by social media and the presence of global brands. Selected individuals possibly possess the skills of product campaigns and launches, management of large businesses and digital, as well as e-commerce. Since finance and marketing are the most hiring functions, below is an idea of the gross base salary range per month:

Head of Finance
Minimum: Rp150 million
Median: Rp175 million
Maximum: Rp200 million

Head of Digital Marketing
Minimum: Rp60 million
Median: Rp80 million
Maximum: Rp100 million

Marketing Director
Minimum: Rp100 million
Median: Rp150 million
Maximum: Rp350 million

Digital and technology are sectors searching for sales and marketing experts too, aside from engineers. Around 15 to 50 percent of the average salary increase is earned when switching jobs within similar industries – by far the highest amount amongst all fields of work. Among the roles in demand are head of engineering, head of digital, data analyst, digital marketing manager, and product manager with some examples of gross base salary range per month:

Head of Engineering
Minimum: Rp50 million
Median: Rp117 million
Maximum: Rp120 million

Digital Marketing Manager
Minimum: Rp25 million
Median: Rp37 million
Maximum: Rp50 million

Meanwhile, the energy and natural resources sector are in dire need of construction managers, project managers, environmental health and safety managers, engineering managers, and cost accountants, all of which fit into the drilling operations for talent with technical expertise in the oil and gas industry as well as fresh talent in renewable energy demanded by European investments. However, only 10 to 15 percent receive an average salary increase when switching jobs within similar industries. Examples of the gross base salary range per month are:

Project Manager
Minimum: Rp30 million
Median: Rp41 million
Maximum: Rp50 million

Engineering Manager
Minimum: Rp35 million
Median: Rp47 million
Maximum: Rp60 million

Procurement and supply chain, along with human resources, within the industrial and manufacturing sector are indeed sought-after skills, as the demanded roles are plant directors, operations managers, maintenance managers, logistics managers, and procurement managers who are skilled with procurement abilities outside of Jakarta and are also capable to upskill. The gross base salary range per month is as follows:

Plant Director
Minimum: Rp50 million
Median: Rp71 million
Maximum: Rp100 million

Maintenance Manager
Minimum: Rp15 million
Median: Rp28 million
Maximum: Rp40 million

Logistics Manager
Minimum: Rp25 million
Median: Rp38 million
Maximum: Rp50 million

Procurement Manager
Minimum: Rp25 million
Median: Rp29 million
Maximum: Rp35 million

Operations Manager
Minimum: Rp40 million
Median: Rp43 million
Maximum: Rp50 million

Last but not least, within property and construction, around 20-35 percent of average salary increases were achieved when switching jobs within similar industries. More government projects are expected, both on the renewable and non-renewable front. Hence, top positioned roles are mostly in demand such as chief executive officers, project directors, design directors, and heads of business development with the gross base salary range per month below:

Chief Executive Officer
Minimum: Rp120 million
Median: Rp137 million
Maximum: Rp200 million

Project Director
Minimum: Rp80 million
Median: Rp130 million
Maximum: Rp180 million

Design Director
Minimum: Rp105 million
Median: Rp132 million
Maximum: Rp160 million

Head of Business Development
Minimum: Rp50 million
Median: Rp56 million
Maximum: Rp60 million

The Michael Page Salary Benchmark is an annual salary report available in 13 countries across Asia Pacific, to provide hiring managers and candidates with salary references across various industries including finance, technology, human resources, sales, etc. Overview reports on market trends, hiring demands, and job seekers’ sentiments within each industry are also included.

See: Check These 2020 Public Holidays to Arrange your Next Year Vacations

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