Indonesia

Despite being the one of the world's most populous countries, Indonesia has been slower to catch up with global HR practices than other markets, having been hit hardest of all in the East Asian financial crisis of 1997-8. In recent years, however, the country is beginning to come back onto the radars of the multinationals, and we predict that business and HR needs will show steady growth in the future. With Mining/Resources, Financial Services, IT&T and FMCG companies leading the way in HR investment, we expect to see an ongoing upgrading of the HR function.

HR in Indonesia can be very localised, with most key HR decisions tending to be fanned out from the regional level. Strict labour regulations make it difficult to inject international HR talent into the country. While the majority of HR professionals are more Operational than strategic, an increasing number are being seconded to Singapore and Hong Kong or are being exposed to regional project work from Jakarta. These more international HR practitioners are particularly sought after in Indonesia for the key HR jobs with local or multinational companies.

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