indonesia salary & employment outlook · 6 2017 indonesia salary & employment outlook the...

IndonesiaSalary & Employment Outlook

2017

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will increase headcount

53%

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IN TH IS REPORT

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salary increaseexpected

>5%

Rise of domestic brands

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2017 Indonesia Salary & Employment Outlook | 3

Seizing New Opportunities

Key Trends

Made in Asia: Rise of Domestic Brands

Tech Growth to Boost Asia’s Job Market

Strong Employer Branding: A Key to Success

Numbers at a Glance

Indonesia Overview

Insights & Salary Benchmarks

Digital

Engineering & Manufacturing

Finance & Accounting

Healthcare & Life Sciences

Human Resources

Legal

Marketing

Procurement & Supply Chain

Property & Construction

Sales

Technology

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4 | 2017 Indonesia Salary & Employment Outlook

Seizing new opportunities

Healthcare, technology and digital sectors earmarked for growth in Asia

Companies in Asia are ramping up efforts to seize growth opportunities in the region, despite slightly weaker global economic sentiment. By investing heavily in mobile-technology start-ups and other innovations, including financial technology (fintech) services, employers are creating new positions with an emphasis on digital skills. Hiring is expected to continue to grow in the next 12 months across the technology sector.

Likewise, the healthcare sector is expected to be a bright spot in 2017, due largely to ageing populations as well as a higher demand for quality services. Countries across Asia are expected to continue building up their healthcare systems, resulting in an increase in hiring demand for qualified professionals across the board.

Digital also shows no signs of slowing down, as companies continue to build up their online platforms and e-commerce capabilities.

In terms of hiring intentions, 44% of employers surveyed across China, Hong Kong, Taiwan, Indonesia, Malaysia, and Singapore said they would be increasing their company headcount; while 49% said they would maintain their current headcount. Mid-level employees appear to be the most sought-after by companies (60%).

Contracting appears to have risen in popularity as a talent solution. In Hong Kong and Singapore, more than half (60%) of companies surveyed currently use contractors, primarily to overcome challenges in permanent headcount approvals. Currently, most contractors are in operations, technology, financial services (reflecting the tightening sector) and business support/administration positions.

Overall, salary increases in Asia are expected to remain modest – almost half surveyed (48%) indicated that the average increment within their companies in the next 12 months will be between 1 and 5%. While employers have agreed that salaries are an important retention tool, other popular employee engagement initiatives include opportunities for career progression and learning and development.

Throughout the region, diversity and inclusion (D&I) continues to play an important part in company programmes. D&I’s popularity in Asia has been on the rise as companies become more aware of the benefits in having different perspectives and skills in their teams. Forty-four per cent of employers in China, Hong Kong, Taiwan, Indonesia, Malaysia and Singapore said they were strongly committed to D&I initiatives.

The breadth of D&I coverage in Asia is slowly beginning to evolve as well, developing from an emphasis on purely gender to cover other less-represented groups. Currently, over half (53%) of D&I programmes in the region are primarily focused on gender, followed by age (42%) and minority ethnic groups (34%).


Made in Asia: Rise of domestic brands

Asian-headquartered companies have become increasingly competitive with their employee value propositions

Across most of Asia’s diverse markets, competition for talent is more intense than ever as domestic brands — historically seen as second place to overseas multinationals, as far as candidate preferences are concerned — compete with their foreign counterparts for top candidates.

The only exception, it appears, is Japan, where working in a well-established domestic firm, like the Toyotas and Panasonics of the country, is seen as more prestigious and stable than top foreign multinationals. Professionals who hope to gain international experience would rather choose to join a local firm and opt for an overseas transfer than join a foreign company.

Outside of Japan, the rise and globalisation of domestic brands in other parts of Asia have caught the eye of many employees, who now see the potential and advantages of joining a local firm.

China, in particular, has seen the meteoric rise of various local brands, now multinationals in their own right and visible to the world. Of these organisations, 21, including Internet giant Alibaba and online travel agency Ctrip, have been listed in Forbes’ Asia’s Fab 50 Companies list. The list also includes companies in Hong Kong, Taiwan, Thailand, Indonesia and Malaysia.

Successes and challenges

For many domestic companies, success usually comes from ensuring compatibility between products/services offered and market demands as well as localising their talent pool to leverage employees’ market knowledge, among other reasons.

However, many face the perennial challenge of finding candidates who have an international perspective, strong knowledge of local markets and the requisite language skills. As they find success within their home countries and look to expand overseas or execute successful IPOs (initial public offerings), the search for talent would have to be taken a step further — this means acquiring true Asian knowledge plus experience in other markets.

In the past, domestic brands have had to work hard at making themselves more attractive to prospective hires, be it through creating a more international corporate culture, introducing better pay/benefits, and ensuring clearer project and performance management processes. This is working in China where 44% of domestic employers surveyed said they would provide increments of 6-10%, almost on par with foreign multinationals (46%).

Those who are highly successful at hiring have two secrets to success: they simply hire the right people for the job — those who have the right skill sets and share company values — and they figure out the most effective platforms to engage their target audiences.

3 WAYS TO HIRE THE RIGHT PEOPLE

1. PROMOTE YOUR COMPANY VALUES. Does your culture reward teamwork or competitiveness? Or do you value customer service, creativity or innovation? Promoting your company values will help attract like-minded individuals and increase the likelihood of finding the perfect match.

2. HAVE A COMPELLING EMPLOYEE VALUE PROPOSITION (EVP). Top performers want to know what sets your company apart. What does it stand for? How is achievement recognised and rewarded? Aim to promote these attributes through your online platforms, public relations or even word-of-mouth. Remember to separate your employment brand from your consumer brand.

3. BE OPEN-MINDED. Often, the best candidates exist outside of your industry. A high-potential candidate with strong transferable skills will often do well even in another industry, when given the right training. They may also bring with them new and innovative perspectives that will help move your business forward.


The race to secure top talent is heating up as companies move to build up technology capabilities

Technological innovation in Asia is set to gather further pace in 2017, led by sizeable investments from established companies and start-ups looking to grow and streamline costs, and stay ahead of their competition.

Fuelled by a myriad of factors, including Asia’s rapid smartphone adoption, the rise of e-commerce and the rush for productivity/automation, almost every company in Asia is investing more in technology and making their business more mobile/tablet-friendly. Within mainland China especially, large amounts of investment are moving towards Shenzhen, where there is an established infrastructure for technology-led manufacturing.

In other markets such as Taiwan and Malaysia, a greater concentration of digital innovation will likely be observed in areas like mobile and software development, Internet of Things (IoT), and cloud-computing.

Japan too, is expected to explore ways of further building up an ecosystem that would help leverage its status as a technological giant, reported the Wall Street Journal. This includes building bridges between large, established companies and less risk-averse start-ups.

Fintech’s growth

With the rise of financial technology services, also known as fintech, and governmental support in this area, start-ups as well as established global and regional financial institutions are investing heavily to develop their own technological capabilities in-house. In markets where mobile and online payment systems remain under-developed, such as in Indonesia and Thailand, fintech services are an opportunity for new players to enter the market.

Already, Indonesia has granted new banking licenses to conglomerates, allowing them to launch digital banks. Hong Kong’s push for the movement has culminated in several notable outcomes, including the annual Finnovasia conference, which regularly brings together hundreds of attendees from different countries to chart fintech’s future in Asia. In Singapore, the country’s monetary authority has also committed to invest S$225 million in fintech over five years.

On an international level, more foreign companies are setting up regional headquarters in Asia, drawn by the region’s lower operating costs, excellent infrastructure and strategic location that make it easier to expand into new markets.

As a relatively young industry, the technology market is expected to face a considerable shortage of talent in this space. Employee recruitment and retention will become increasingly competitive, as the rate of technological growth outpaces talent development. Adding to such challenges is the tendency of candidates moving around more frequently than in other sectors, attracted by better opportunities and remuneration packages.

To overcome this shortage, companies are beginning to recruit beyond their industries and national borders. Talent flow is likely to be technology-focused rather than business-focused. Salaries are likely to increase as well.

Tech growth to boost Asia’s job market

5 TIPS TO RETAIN TOP TECHNOLOGY TALENT

1. KEEP ON TOP OF MARKET SALARY RATES. Specialists can command material increases, so the first step in retaining your technology talent is to frequently review the market rates on offer. It is essential that you communicate to internal stakeholders the vital importance of at least matching – if not exceeding – the going rate, and getting budget allocation accordingly. The laws of supply and demand apply.

2. LOOK TO THE START-UP WORLD. With Silicon Valley setting the standard for technology employment, it may be wise to look to start-up culture and try to replicate some aspects of what makes technology start-ups so attractive. For example, technology specialists thrive on challenges and new experiences.

3. FLEXIBILITY. If budget is still difficult to find, there may be an opportunity to make up for it with perks like flexible working options. Bearing in mind that a technology specialist may work best uninterrupted at home, or even at night, a lenient work schedule can also be a way to get the most out of your team.

4. INVEST IN TRAINING. Training is an investment to maximise your team’s capacity and improve your employee retention rate. Hence, this should be an important piece of the budget puzzle – not an afterthought. Technology employees typically enjoy learning new skills. The opportunity to earn CV-enhancing qualifications like CCNA, MCP, PRINCE2 or Certified ScrumMaster, is valued.

5. DISCUSS CAREER PATHS. To prevent technology staff becoming dissatisfied or restless with their job, it is worthwhile at annual review time and throughout the year to ask what each employee is looking for in their career – whether it is the opportunity to try new things, new roles or to transfer to another location.


Strong employer branding: A key to success

Companies that are able to effectively communicate their culture and values to employees are staying ahead

More companies in Asia are paying attention to employer branding as a way to stand out in the increasingly competitive field of talent acquisition and retention. Already, 56% of employers surveyed said that their organisations practise employer branding actively.

Traditional incentives such as salary increases remain one of the top considerations for candidates, especially in mainland China and emerging markets like Thailand and Indonesia. But other factors, such as career progression, training, work-life balance, and corporate values, are also rapidly becoming more of a “pull” factor for an increasing number of employees, particularly the millennials. This is especially true in Taiwan where salaries tend to stay relatively flat.

Companies that succeed in employer branding are those that can communicate clearly to employees what they stand for, and the culture and values the organisation promotes. Often, such companies have multi-channel digital strategies to promote their brand internally and externally. Almost two-thirds (55%) of the companies that practise employer branding engage with potential and current employees using internal and external social media platforms.

In Indonesia, for example — a relatively young market that is among the world’s most active users of Facebook and Twitter — 50% of employers use social media to reach talent under the age of 30. Start-ups that do not have enough resources to build their employer branding also often turn to social media to communicate their corporate journey and mission as part of their attraction and retention strategy.

Diversity and inclusion

Increasingly, more companies are ramping up their efforts in diversity and inclusion (D&I) to build their employer brand. International firms are typically at the head of the curve with D&I, often because they have policies mandated by regional or head offices, and many of them are seeking to localise their workforces to become more representative in the markets they operate in.

While D&I efforts can be better encouraged on the domestic front, local companies that are taking the biggest strides in this area are typically those looking to expand abroad: for example, several Chinese banks opening in Hong Kong and technology businesses expanding across the globe have made determined efforts to look more attractive to international talent, and this has included having clear policies on D&I.

The good news is that majority of employers across Asia (93%), comprising local firms and foreign multinationals, have said that they are committed, in varying levels, to supporting their D&I efforts. Among all, Singapore stood out, with 91% of employers affirming their commitment to D&I, as the local government continues to champion such efforts.

Throughout Asia, gender appears to be the top focus of most companies’ D&I programmes, with slightly over half (53%) of companies making a clear push for recruiting and promoting women in organisations. Beyond gender, companies are also focusing programmes on age (42%) and minority ethnic groups (34%).

5 WAYS TO PUSH D&I IN YOUR ORGANISATION

1. HAVE RELEVANT PROGRAMMES. To support a diversified workforce, companies should ideally have programmes that retain talent from different backgrounds. Some initiatives that have worked among our clients included leadership development schemes for women and fair performance reviews, with processes that neutralise bias.

2. MAKE IT A GENUINE PRIORITY. For diversity and inclusion (D&I) programmes to truly make a difference, senior leaders will need to support the cause whole-heartedly and make it a point to personally practice D&I.

3. CREATE AN ENVIRONMENT THAT SHOWS SUPPORT. For example, if your company has a work-from-home policy, ensure that leaders are supporting this initiative 100% and that the employees have the tools, like laptops and remote access permissions, to telecommute productively. Otherwise, employees might feel that the policies are just for show.

4. AVOID UNCONSCIOUS BIAS. Train managers to be more aware of their hidden biases. People tend to recruit talent who are most similar to their backgrounds and personality. However, such an approach reduces diversity and in the long run, new ideas and perspectives.

5. DO NOT FORGET INCLUSION. Once a diverse workplace is set in place, companies should follow up by introducing programmes that foster collaboration among the different groups. This can be done through organisation-wide projects, like corporate social responsibility initiatives, which allow employees of all levels to work with different groups.


Numbers at a glance

Indonesia has experienced a steady 2016, with bright spots observed in the fast-expanding real estate and e-commerce sectors. What are employers’ hiring intentions for 2017?

HEADCOUNT INCREASES of employers surveyed are expected

to recruit new hires

53%

of employers who plan to increase headcount say they are actively seeking mid-level employees

60%HIRING ACTIVITY

of Indonesia employers expect to increase salaries by >5% in the next 12 months

82%SALARY INCREASES


TOP 3 FOCUS POINTSFOR DIVERSITY AND INCLUSION PROGRAMMES

TALENT ATTRACTION & RETENTION INITIATIVES

Salary increases

72%1Career progression

65%2 Workplace flexibility

36%3

Gender

55%1Religion

38%2 Minority ethnic groups

30%3

say their organisations support diversity and inclusion

96%DIVERSITY & INCLUSION


Indonesia overview

Amid active growth across various sectors, some elements of caution do exist in Indonesia as a result of the current global market sentiment. Still, companies are confident in 2017, due in part to stronger commitment towards infrastructure spending and general positivity surrounding the country.

Hiring activity will also be buoyed by businesses looking to invest or establish operations in the country. For many companies, having a presence in Indonesia has progressed from a nice-to-have to a must-have. Already, 53% of companies surveyed are planning to increase headcount in 2017, higher than the Asia average of 44%.

The country’s real estate sector is also growing, bolstered by mainland Chinese firms’ land investments. The e-commerce sector is another bright spot experiencing healthy growth both from major players as well as a steady flow of start-ups.

Generally, the country’s positive economic sentiment has generated high demand for qualified candidates across various industries with 60% of companies actively looking for middle-management staff.

However, this has presented serious challenges where hiring is concerned: in many sectors, talent is thinly spread. Candidates switch jobs frequently, often before they have completed projects they have been working on. Competition for qualified talent is fierce, as companies often seek candidates with similar expertise, and want to compare several candidates before making hiring decisions.

In the digital sector, hiring is no easier – employers face a dearth of creative talent, marketing, public relations and e-commerce professionals. This is due to the large number of e-commerce firms rapidly expanding in Indonesia, who are hitting the market hard and fast with large human capital requirements.

Furthermore, the fact that businesses demand local Indonesian talent gives little relief to an already tight hiring market. The ability to attract overseas Indonesians back to the country will help alleviate this challenge — more than half of the companies surveyed (58%) have employed returning Indonesians over the past year and this trend will continue in 2017.


Insights

Digital

2017 will be a year of significant growth for the country’s digital sector, as e-commerce continues to flourish. E-commerce companies are expected to seek candidates with strong digital skills and product knowledge, particularly in fashion and electronics.

In addition, there is likely to be strong demand for fintech (financial technology), logistics fulfillment, and big data services. The market is generally evenly split between local and multinational players, who are seeking candidates of a similar profile.

More traditional businesses in the fast-moving consumer goods, consumer and retail sector are beginning to recognise the importance of going digital. However, many are limited in their understanding of what digital exactly entails, which could result in wrong candidate fits for job types.

Adding to such challenges is a shallow talent pool exacerbated by candidates moving around more frequently than in other sectors. As a result, it is difficult to determine what keeps these candidates motivated.

In addition, government regulations within the industry, especially within sectors such as e-commerce, payment and fintech, are fast-changing.

While current growth may be exponential, funding for e-commerce businesses might slow down in 2018. Consolidation may take place as smaller players exit the industry, or are sold to local conglomerates who are aggressively diversifying their businesses.

In this market, candidates can expect to receive between 20 and 30% increments when they switch jobs, in addition to stock options. Candidates who are skilled in search engine optimisation and social media will be highly sought after.

Roles in performance marketing, CRM (customer relationship

management) and analytics, and product managers.

Hot jobs

Salary Benchmarks

Please note: 1. Market rates are becoming much less homogeneous; while we have taken great care, these salary ranges can only be approximate guides. Since there are often specific circumstances relating to individual companies, please call us for additional information. 2. These figures are generally the total remuneration (i.e. cash), excluding bonus/incentive schemes. 3. Variable and incentive schemes are becoming more common through the different levels of management and are not included in these figures.


Agency

In-house

ROLE SALARY RANGE (IDR IN MIL) MEDIAN (IDR IN MIL)

SEO/SEM Executive 65 65

SEO/SEM Manager 195 – 260 227.5

SEO/SEM Director 390 – 650 520

Affiliates Manager 325 – 520 422.5

Advertising Operations Manager 260 – 390 325


Online/Digital Marketing Manager 195 – 650 422.5

Content Production Manager 195 – 325 260

Online Product Manager 260 – 650 455

Director/Head of Digital 780 – 1,040 910

Social Media Executive 65 – 130 97.5

Social Media Manager 195 – 325 260

SEO/SEM Executive 65 – 130 97.5

User Experience Specialist 195 – 325 260

E-commerce Manager 325 – 780 552.5

Director/Head of e-commerce 910 – 1,300 1,105

DIGITAL


Insights

Engineering & Manufacturing

Indonesia’s consumer goods sector has seen a steady recovery, which is expected to continue through 2017. As a result, related business-to-business companies, such as those in chemicals, packaging and ingredients, are likely to recover as well.

Despite a generally brighter outlook, challenges still exist for businesses. Some manufacturing firms, for example, have started shifting operations to greater Jakarta and cities like Surabaya, Palembang and even Bali to fulfill consumer demands while streamlining costs. Many potential candidates may be unwilling to relocate and firms may not be able to hire the skilled technical professionals needed.

However, this presents career opportunities for qualified candidates who are not based in Jakarta, and those who are looking to return to Indonesia. As candidates switch jobs, they can expect to receive between 20 and 25% in increments.

The most sought-after candidates in this market are technical experts who have business acumen – in particular, skills relating to manufacturing effectiveness, such as lean manufacturing, Six Sigma, Kaizen, Total Productive Maintenance and 5S (sort, straighten, shine, standardise and sustain).

Roles in manufacturing excellence, lean managers,

engineering managers.

Hot jobs

Salary Benchmarks



R&D Engineering/R&D

Quality Control/Assurance

Project/Programme Management

Production/Manufacturing Engineering


Design Engineer 104 – 156 130

Application Engineer 195 – 234 214.5

Senior Design Engineer 260 – 325 292.5

Senior Application Engineer 325 – 455 390

Engineering Manager 195 – 520 357.5

Engineering Director 910 – 1,430 1,170


Quality Engineer 78 – 104 91

Senior Quality Engineer 117 – 156 136.5

Quality Manager 195 – 455 325

Quality Director 650 – 910 780


Project Manager 325 – 416 370.5

Senior Project Manager 455 – 780 617.5

Project/Programme Director 975 – 1,300 1,137.5


Production Engineer 78 – 195 136.5

Production Engineering Manager 195 – 520 357.5

ENGINEERING & MANUFACTURING


Insights

Indonesia’s digital, technolgy and e-commerce sectors are positioned for strong growth in 2017. The industrial sector remains a significant source of growth, while the country’s consumer business sector is likely to rebound from a lacklustre 2015.

Top financial talent is in short supply, as many candidates tend to move around frequently to develop a sufficient depth of skills. As a result, top candidates will command premium salaries. Candidates have also shown more interest in joining local firms which have more centralised decision-making processes compared with mulitnational companies. Uncertainty in wider macro-economic conditions will also impact hiring in 2017.

In this talent-strapped market, candidates are requesting for between 25 and 35% increments as well as sign-on bonuses to compensate for long-term incentive plans or lost equity as they switch jobs. However, businesses are keeping a keen eye on costs and capping increments at about 20%.

Candidates with the following skillsets will be highly sought after: those with experience in commercial finance and who are able to plan and analyse financial data; those with experience in change management involving cost-reduction projects and new business integration; and tax experts who are skilled at navigating Indonesia’s complex tax system.

Chief financial officers, financial directors, financial controllers, business controllers, business analysts, commercial finance

partners, tax specialists at all levels, and finance managers.

Hot jobs

Finance & Accounting

Salary Benchmarks



General


Accountant 150 – 240 195

Tax Accountant 160 – 250 205

Financial Accountant 200 – 280 240

Cost Accountant 150 – 240 195

Senior Tax Accountant 200 – 420 310

Group Accountant – Consolidation 420 – 660 540

Financial/Business Analyst 170 – 250 210

Senior Financial Analyst 270 – 380 325

Finance Manager (Small/Medium Organisation) 260 – 480 370

Finance Manager(Shared Services Centre) 540 – 660 600

Finance Manager (Large Organisation) 420 – 600 510

Senior Finance Manager (Small/Medium Organisation) 420 – 600 510

Senior Finance Manager (Shared Services Centre) 660 – 780 720

Senior Finance Manager (Large Organisation) 540 – 720 630

Costing Manager 360 – 540 450

Financial & Planning Analysis Manager 480 – 600 540

Financial Controller (Small/Medium Organisation) 420 – 600 510

Financial Controller (Large Organisation) 660 – 900 780

Finance Director 960 – 1,440 1,200

Chief Financial Officer 1,600 – 2,000 1,800

FINANCE

Salary Benchmarks



Specialist


Treasury Analyst 140 – 180 160

Internal Auditor 160 – 240 200

Senior Internal Auditor 280 – 380 330

Corporate Finance Manager 420 – 660 540

Treasury Manager 420 – 660 540

Internal Audit Manager 420 – 660 540

Tax Manager 420 – 720 570

Corporate Finance Director 960 – 1,440 1,200

Treasury Director 720 – 1,200 960

Internal Audit Director 750 – 1,200 975

Tax Director 720 – 1,200 960

Head of Tax 700 – 900 800

FINANCE


Insights

Healthcare & Life Sciences

Within Indonesia’s life sciences sector, the fast-moving consumer goods (FMCG) and food and beverage (F&B) sectors are poised for growth as companies predominantly in the business-to-business space are expanding and building more production lines.

On the healthcare front, medical technology, or medtech, looks to be a bright spot as more technology start-up companies focus more on e-commerce rather than traditional business models.

Increasingly, candidates are required to possess certain product-specific skill sets. This could include having experience as a flavourist, nutritionist, or in formulation. Such candidates are limited and few employers have large enough budgets to attract potential hires.

However, several flavour houses are shifting their labs and plants to Indonesia, presenting an opportunity for candidates.

A significant number of pharmaceutical businesses are also likely to undergo mergers as a result of challenging business conditions. Such companies will seek candidates with international exposure, expatriates, or returning Indonesians, who are limited in supply. As a result of these mergers, some redundancies are likely, meaning more potential candidates will be widely available.

Against this backdrop, candidates are likely to receive between 15 and 20% increments when they switch jobs. Candidates with experience as flavourists, in formulation and in product development are likely to be highly sought after, as are candidates with medical experience.

Roles in research and development, top-level medical roles.

Hot jobs

Salary Benchmarks



Clinical Research

Operations

Quality & Compliance

Research & Development


Drug Safety/Pharmacovigilence 117 – 156 136.5

Data Management 117 – 156 136.5

Clinical Operations 143 – 195 169

Biostatistician 195 – 260 227.5

SAS Programmer 260 – 390 325

Medical Affairs 455 – 585 520


Manufacturing (Manager Level) 325 – 520 422.5

Process Engineering (Engineer Level) 195 – 520 357.5

Mechanical Engineering (Engineer Level) 195 – 390 292.5

Electrical Engineering(Engineer Level) 195 – 390 292.5

Controls/Automation(Engineer Level) 195 – 325 260

EHS (Manager Level) 260 – 585 422.5


Quality Control 234 – 325 279.5

Microbiology 260 – 364 312

Regulatory Affairs 390 – 585 487.5

Quality Assurance (GMP) 390 – 585 487.5


Scientists (non-PhDs) 520 – 650 585

Scientists (PhDs) 780 – 1,040 910

HEALTHCARE & LIFE SCIENCES

Salary Benchmarks



Commercial


Product Manager 195 – 325 260

Senior/Group Product Manager 260 – 455 357.5

Marketing Manager 455 – 845 650

Head of Marketing 650 – 1,300 975

Area Sales Manager 195 – 325 260

Regional Sales Manager 260 – 520 390

National Sales Manager 455 – 845 650

Head of Sales 650 – 1,300 975

Sales Director 975 – 1,690 1,332.5

Marketing Director 975 – 1,690 1,332.5

General Manager/Country Head 1,235 – 2,340 1,787.5

HEALTHCARE & LIFE SCIENCES


Insights

Human Resources

Manufacturing, logistics, e-commerce/digital services and mining look to be areas of strong growth for Indonesia in 2017.

This growth is driven by several factors. The government, for one, has encouraged foreign investment, resulting in more manufacturers shifting their plants to Indonesia. Labour (blue collar) in Indonesia is also cheaper relative to other South East Asian countries.

The government has also made plans to improve the quality of life for Eastern Indonesia residents by building better infrastructure, resulting in an increased demand for services required.

Mining firms have increasingly been complying with new regulations, a signal that the mining sector might see growth in 2017.

The technology sector is also set to perform well. Since mid-2016, digital financing and financial technology have started gaining ground in Indonesia and are expected to develop further this year. Many companies are expected to strengthen their mid to senior-level management positions to drive organisational transformation in support of this change.

These developments bode well for the market – a significant number of new firms have been established and existing ones are expanding, particularly in manufacturing and logistics. Candidates who switch roles can look forward to increments in the region of 20-25%.

In this market, English proficiency, as well as strong leadership skills and experience in change management and business development, are particularly valued.

Those who have strong strategic skills, business acumen and the ability to turn concepts into reality will be in demand.

Roles in talent management, organisation development, learning

and development as well as HR business partners.

Hot jobs

Salary Benchmarks



Banking & Financial Services

Commerce & Industry


Payroll Specialist 130 – 195 162.5

Mobility Specialist 156 – 390 273

HRIS Specialist 156 – 390 273

Learning and Development Specialist 156 – 390 273

Recruitment Specialist 156 – 390 273

HR Generalist/Business Partner 325 – 780 552.5

Organisational Development 390 – 650 520

Compensation and Benefits Specialist 156 – 390 273

Head of Human Resources 780 – 1,560 1,170


Payroll Specialist 130 – 195 162.5

Mobility Specialist 156 – 390 273

HRIS Specialist 156 – 390 273

Learning and Development Specialist 156 – 390 273

Recruitment Specialist 156 – 390 273

HR Generalist/Business Partner 195 – 455 325

Organisational Development 390 – 585 487.5

Compensation and Benefits Specialist 195 – 455 325

Head of Human Resources 650 – 1,560 1,105

HUMAN RESOURCES


Insights

Legal

The year looks promising for businesses across diverse sectors, namely insurance, digital and e-commerce and construction.

The country’s fast-moving consumer goods sector, which has traditionally held steady, is also poised for growth, due in part to a strengthening of the country’s middle class. Construction and infrastructure are also likely to grow, driven largely by government intervention.

The impact of new regulations will be significant on the country’s insurance industry. New digital technologies are also likely to draw customers to insurance companies who have modernised their services and service capabilities to go digital.

Unsurprisingly, the digital and e-commerce sector continues to grow. More companies in this space have also become aware of the need for legal expertise and services. Law firms are doing well, particularly in intellectual property, information technology (IT) and financial services.

Over the next 12 months, there will be opportunities for international law firms seeking to expand their regional businesses. Inflows of foreign investment will also boost businesses across various industries and make local players more competitive when hiring high-calibre staff.

In this competitive hiring market, candidates with financial services, digital and e-commerce as well as natural resources and legal experience can command between 20 and 30% increments when they switch jobs.

Those in the IT/telco sector, pharmaceuticals, fast-moving consumer goods and construction/infrastructure can command between 20 and 25%.

Candidates with experience in compliance and stakeholder management, as well as those with IT/intellectual property technical skills, will be in high demand.

Roles in legal and compliance, government relations, public policy

and external affairs.

Hot jobs

Salary Benchmarks



Pharmaceutical & FMCG

Construction & Infrastructure

Telecommunications & IT

Financial Services


Legal Manager 260 – 390 325

Legal Head 390 – 845 617.5

Legal Director 845 – 1,500 1,172.5

Government Relations 390 – 845 617.5

Corporate Affairs Manager 260 – 390 325

Corporate Affairs Director 845 – 1,105 975



Legal Head 325 – 845 585

Legal Director 845 – 1,430 1,137.5

Government Relations 325 – 845 585

Corporate Affairs Manager 260 – 390 325

Corporate Affairs Director 845 – 1,105 975



Legal Head 325 – 520 422.50

Legal Director 845 – 1,105 975

Government Relations 325 – 845 585



Legal Head 390 – 650 520

Legal and Compliance Director 780 – 1,300 1,040

LEGAL

Salary Benchmarks



Digital/IT

Law Firm



Legal Head 390 – 715 552.5

FIRST TIER FIRST TIER SECOND TIER SECOND TIER

ROLE SALARY RANGE (IDR IN MIL) MEDIAN (IDR IN MIL) SALARY RANGE (IDR IN MIL) MEDIAN (IDR IN MIL)

Associate 390 – 585 487.5 260 – 390 325

Senior Associate 650 – 910 780 390 – 650 520

LEGAL


Insights

Marketing

The nutrition sector is likely to grow in 2017 as consumers demand more healthy food options, drinks, and multi-vitamins, due to better health awareness. On the flip side, growth in the baby nutrition sector is likely to slow, though companies will likely invest more in marketing to engage their loyal customers.

More domestic companies are looking to put together local management teams. However, high-calibre candidates in marketing are still in short supply, particularly at the director level. The lack of local talent is a concern for start-ups that typically need candidates with a broad spectrum of marketing skills and a certain degree of maturity.

In the talent-strapped technology sector, technology start-ups often look to recruit fast-moving consumer goods talent because of the latter’s skill sets. Candidates are also often happy to make the switch due to generous increments.

Opportunities abound in digital marketing. More companies are investing in the function and adding headcount – even developing entire divisions to focus on this area.

Against this hiring backdrop, candidates can expect to receive between 20 and 35% increments when they switch jobs. Those who are skilled in digital marketing, social media management, brand activation, brand development, and new product development will be particularly sought after.

Digital marketing managers, marketing leads, brand managers

and marketing directors.

Hot jobs

Salary Benchmarks




Brand Executive/ Product Executive 104 – 156 130

Assistant Brand Manager/ Assistant Product Manager 130 – 195 162.5

Brand Manager/Product Manager 195 – 260 227.5

Senior Brand Manager/ Senior Product Manager 325 – 715 520

Research, Product Development and Planning Manager 390 – 910 650


Trade Marketing Executive 195 – 390 292.5

Trade Marketing Manager 390 – 780 585

Marketing Executive 65 – 156 110.5

Marketing Manager 650 – 975 812.5

Head of Marketing 910 – 1,300 1,105

Marketing Director 1,040 – 1,950 1,495


Public Relations Executive 65 – 195 130

Public Relations Manager 195 – 390 292.5

Consumer Products and FMCG

Brand & Product Development

Marketing

Public Relations

MARKETING

Salary Benchmarks




Marketing Communications Assistant/Executive 65 – 104 84.5

Marketing Communications Manager 130 – 325 227.5

Marketing Communications Director 325 – 520 422.5

Internal Communications Executive 65 – 104 84.5

Internal Communications Manager 130 – 260 195

Internal Communications Director 390 – 520 455

Public Relations/Corporate Communications Executive 65 – 104 84.5

Public Relations/Corporate Communications Manager 130 – 390 260

Public Relations/Corporate Communications Director 390 – 1,300 845

Financial Services

Marketing, Public Relations & Communications


Event Coordinator 65 – 104 84.5

Event Planner 104 – 130 117

Events Manager 130 – 195 162.5

Head of Events 195 – 260 227.5


Market Research Executive 65 – 195 130

Market Research Manager 130 – 520 325

Market Research Director 390 – 910 650

Event Management

Research

MARKETING

Salary Benchmarks




Assistant Marketing Communications Manager 195 – 390 292.5

Marketing Communications Manager/Regional Communications Manager/ Public Relations Manager

390 – 520 455

Marketing Communications Director/Public Relations Director 520 – 1,040 780

IT & Telecommunications



Marketing Specialist 130 – 260 195

Product Marketing Manager 260 – 390 325


Manufacturing/Industrial

Marketing


Assistant Marketing Manager 65 – 130 97.5

Circulation/Marketing Manager 130 – 390 260


Events Manager 130 – 195 162.5

Circulation/Marketing Director 390 – 650 520

Media/Entertainment

Event Management & Marketing

MARKETING

Salary Benchmarks




Marketing Executive 65 – 130 97.5


Marketing Director 650 – 1,560 1,105

Research Manager 195 – 390 292.5

Public Relations/ Media Communications Manager 195 – 520 357.5

Professional Services


MARKETING


Insights

Procurement & Supply Chain

The year ahead looks bright for Indonesia’s manufacturing, fast-moving consumer goods and e-commerce sectors. Indonesia is making important strides towards becoming the largest market for e-commerce in ASEAN as the country continues to make online shopping platforms’ development a priority. As a result, supply chain, transport and logistics businesses – which are an integral part of e-commerce – are set to receive a huge boost as well. Indonesia’s geography as an archipelago of islands as well as its strategic location along major sea lanes also bode well for its transformation into a logistics hub.

These market conditions present both challenges and opportunities. On the one hand, there is a disparity between the actual calibre of job candidates and employer demands, particularly in the area of operational excellence which is experiencing an acute shortage of talent. On the other hand, overseas Indonesians are particularly in demand for the skills they bring, as well as their international exposure.

In such competitive conditions, candidates who switch jobs can expect between 15 and 25% increments. Candidates with skills in commercial supply chain, planning, operational excellence and transformation management will be highly sought after.

Roles in planning, procurement and customer service.

Hot jobs

Salary Benchmarks




Warehouse Supervisor 78 – 195 136.5

Assistant Warehouse Manager 104 – 234 169

Warehouse Manager 143 – 338 240.5

Warehouse Operations and Logistics Manager 195 – 390 292.5

Regional Warehouse Operations and Logistics Manager 260 – 520 390

Logistics/Warehousing/Distribution

Warehousing


Logistics Supervisor 104 – 195 149.5

Assistant Logistics Manager 156 – 260 208

Logistics Manager 195 – 455 325

Senior Logistics Manager 260 – 650 455

Director/Vice President — Operations and Logistics 780 – 1,300 1,040

Logistics

Manufacturing & Production

Engineering


Material Planning and Control Supervisor 78 – 195 136.5

Material Planning and Control Manager 156 – 325 240.5

Production Manager 195 – 520 357.5

Factory/Plant Manager 390 – 780 585

General Manager 520 – 910 715


Project Management 325 – 416 370.5

Engineering (Manufacturing, Mechanical, Electrical and Electronic)

78 – 195 136.5

PROCUREMENT & SUPPLY CHAIN

Salary Benchmarks



Procurement


Procurement Officer 52 – 104 78

Senior Procurement Officer 78 – 156 117

Assistant Procurement Manager 143 – 260 201.5

Procurement Manager 195 – 455 325

Senior Procurement Manager/Regional Manager 325 – 585 455

Director 845 – 1,170 1,007.5

Regional Head 975 – 1,365 1,170

Global Head 1,625 – 3,250 2,437.5


Senior Officer, Process Improvement 104 – 156 130

Assistant Manager, Process Improvement 195 – 260 227.5

Manager of Process Improvement/Operations Excellence 390 – 585 487.5

Director of Process Improvement/Operations Excellence 650 – 1,040 845

Quality/Compliance/Process Improvement

Operations


Quality Assurance Officer 78 – 104 91

Quality Assurance Senior Officer 117 – 156 136.5

Quality Assurance Assistant Manager 130 – 195 162.5

Quality Assurance Manager 195 – 455 325

Quality Assurance Director1 650 – 910 780

Head of Quality Assurance 780 – 1,040 910

Quality Assurance & Compliance


1These levels will handle both quality assurance and compliance.

Salary Benchmarks



Supply Chain


Planner/Analyst 52 – 104 78

Senior Planner/Senior Analyst 78 – 156 117

Assistant Supply Chain/Planning Manager 130 – 325 227.5

Supply Chain Manager 325 – 650 487.5

Regional Supply Chain Manager (APAC) 585 – 975 780

Supply Chain Director 845 – 1,300 1,072.5

Head of Supply Chain 845 – 1,300 1,072.5



Insights

Property & Construction

Due largely to Indonesia’s burgeoning status as an e-commerce hub, there is plenty of activity in the logistics and warehousing sectors, which are predicted to be key growth areas for real estate through 2017.

Increasingly, developers, including those from China and Japan, are turning to secondary cities within the country to build more subsidised and low-cost housing to capture sales from low to middle income segments. This has resulted in an increased demand for project development leads as well as key back-office positions to help put sustainable growth models in place. Sales and marketing positions within this sector will also remain in high demand.

Despite a recent re-adjustment in prices following a 350% increase in office rental prices over the past three years, hiring activity within the commercial office sector will remain competitive. However, activity in the high-end residential sector will remain slow, as economic uncertainty, due in part to the 2016 tax amnesty, has impacted short-term outlooks. Still, demand in this space is expected to steadily increase through the next 12-18 months.

As the Jakarta mass rapid transit system (MRT) edges closer to completion, its impact on real estate, especially in the retail sector, is expected to be significant. High demand for space by food and beverage, quick service restaurants, cosmetics and entertainment businesses still remains. Of note, cosmetics and entertainment stores are now also becoming key factors for mall owners.

In general, candidates switching between roles may expect salary increases of 15-20%.

Roles in project management, planning, business development,

operations and leasing.

Hot jobs

Salary Benchmarks



Consultancy

Projects

Corporate Real Estate


Property Manager 325 – 780 552.5

Project Engineer 325 – 390 357.5

Project Manager 325 – 585 455

Project Director 520 – 1,040 780

Leasing Manager 260 – 455 357.5

Design Manager 195 – 390 292.5

Facilities Manager 260 – 455 357.5

Facilities Director 585 – 910 747.5

Valuations Manager 325 – 455 390

Head of Valuations 520 – 780 650




Interior Designer 130 – 195 162.5

Design Manager 195 – 390 292.5

Project Development Manager 585 – 715 650

Head of Development 1,170 – 1,950 1,560


Facilities Manager 260 – 455 357.5


Head of Facilities 585 – 910 747.5

Head of Engineering 455 – 780 617.5

Regional Head of Facilities 1,040 – 1,300 1,170

Regional Head of Engineering 845 – 1,040 942.5

Regional Head of Corporate Real Estate 1,170 – 1,560 1,365

PROPERTY & CONSTRUCTION

Salary Benchmarks



Real Estate Investments


Asset Management Manager 325 – 585 455

Portfolio Management Manager 325 – 585 455

Investment Management Manager 390 – 650 520

Head of Asset Management 650 – 1,040 845

Head of Portfolio Management 650 – 1,040 845

Head of Investment Management 780 – 1,170 975

PROPERTY & CONSTRUCTION


Insights

Sales

Indonesia’s food and beverages (F&B), consumer goods and ready-to-drink (RTD) product sectors are likely to have a good showing in 2017. RTD is a sizeable business in Indonesia, with an increasing number of local players competing with global brands for market share. Global brands, too, are expanding their presence in the local market both directly and through joint ventures with local players.

On the retail front, a burgeoning middle class has paved the way for more international brands entering the Indonesian market. The beauty industry, in particular, is experiencing stronger demand for new brands and products, while existing brands have upgraded their business models.

Amid these market conditions, there will be a significant volume of new investments and growing businesses. However, the quality of talent might not measure up, resulting in businesses having to pay premium salaries for candidates who may not possess the requisite skills.

In addition, Indonesia’s frequently-changing laws pose a challenge for businesses based in the country. Some examples include regulations prohibiting the sale of alcohol in supermarkets, as well as legislation around the domestic production of mobile devices.

However, on a positive note, growth of the country’s e-commerce sector has also meant that more fast moving consumer goods and retail companies are developing e-commerce channels in addition to existing ones.

Candidates who switch jobs can expect between 20 and 35% increments. Skills in demand include e-commerce expertise, distribution management, trade marketing, sales strategic planning, business development and data analysis.

E-commerce managers, key account managers, national sales managers

and regional sales managers.

Hot jobs

Salary Benchmarks



Advertising & Public Relations Agencies

Financial Services


Account Manager 234 – 325 279.5

Account Director 325 – 650 487.5

Group Account Director 520 – 780 650

Business Director 780 – 1,300 1,040

Managing Director/ General Manager 1,170 – 1,950 1,560


Sales Executive 65 – 130 97.5

Sales Manager 130 – 390 260

Sales Director 390 – 780 585


Key Account Executive 104 – 156 130

Assistant Key Account Manager 130 – 208 169

Key Account Manager 195 – 390 292.5

National Key Account Manager 390 – 910 650

Consumer Products & FMCG

Account Management


Area Sales Manager 195 – 325 260

Regional Sales Manager 260 – 650 455

National Sales Manager 520 – 1,040 780

Sales Director 1,040 – 1,950 1,495

Sales

SALES

Salary Benchmarks




Channel Account Manager/Account Manager 195 – 520 357.5

Sales Manager/ Global Account Director 325 – 910 617.5

Division Manager/ Sales and Marketing Manager/General Sales Manager

650 – 1,170 910

Vice President/Sales and Marketing Director/ Marketing Director

780 – 1,560 1,170

Managing Director/ General Manager 1,040 – 1,950 1,495

Sales Director/ Business Development Director 780 – 1,560 1,170


Assistant Sales Manager 130 – 195 162.5

Sales/Business Development Manager 195 – 325 260

Advertising/Media Sales Manager 195 – 325 260

Sales/Business Development Director 325 – 1,040 682.5

Advertising/Media Sales Director 325 – 1,300 812.5

General Manager 650 – 1,300 975

IT & Telecommunication

Sales & Account Management

Media/Entertainment

Sales & Business Development


Sales Engineer/ Senior Sales Engineer 195 – 325 260

Sales Manager/ Business Development Manager 325 – 650 487.5

General Manager/Director 1,040 – 1,560 1,300

Manufacturing/Industrial

Sales

SALES

Salary Benchmarks



PR Agencies


Account Executive 65 – 130 97.5

Account Manager 234 – 325 279.5

Account Director 325 – 650 487.5

Director 520 – 780 650

Executive Director 780 – 1,300 1,040

Managing Director/General Manager 1,170 – 1,950 1,560


Business Development Executive 65 – 130 97.5

Business Development Manager 130 – 325 227.5

Business Development Director 390 – 780 585

Professional Services

Business Development & Research

SALES


Insights

Technology

Indonesia’s manufacturing, fast-moving consumer goods and retail sectors are increasing their investments in information technology (IT) infrastructure. Numerous businesses have transitioned from IT support to IT core businesses, and there is greater demand for investment in digital development, particularly in mobile.

In this market, talent shortages remain a significant challenge. English-speaking candidates are in short supply, and employers often prefer overseas graduates. These candidates typically switch jobs frequently, and it is a common trend for technology experts to take on project-based tasks rather than to stay on with one particular company.

Businesses are still hiring to improve their infrastructure and to automate their processes. In these companies, the parent company’s regional strategy is often at odds with local needs. It is likely that the market will see greater demand for cybersecurity services, where talent shortages are especially acute.

Candidates looking to switch jobs can expect 20 to 40% increments. Those with experience in project management, IT change management, business intelligence and information systems are in high demand. Web and mobile developers, as well as infrastructure and cybersecurity professionals, are also highly sought after.

Project managers, mobile developers and engineers, heads of IT, roles in

solution delivery.

Hot jobs

Salary Benchmarks




Developer 195 – 260 227.5

Mobile Developer 130 – 260 195

System Analyst 130 – 260 195

Application Development Manager 260 – 390 325


Infrastructure Manager 260 – 520 390

Head of Infrastructure 325 – 585 455


Business Analyst 195 – 325 260




IT Manager 455 – 650 552.5

IT Director 650 – 1,300 975

Chief Technology Officer 1,040 – 1,950 1,495

Chief Information Officer 1,040 – 1,950 1,495


IT Helpdesk 104 – 195 149.5

Desktop Support Analyst 104 – 195 149.5

System Administrator 104 – 195 149.5

Service Desk Manager 195 – 260 227.5

Head of Operations and Support 325 – 390 357.5

Banking & Financial Services

Development, Design & Architecture

Infrastructure/Network

Project Management

General Management

Support/Administration

TECHNOLOGY

Salary Benchmarks




Developer 130 – 195 162.5

Analyst Programmer 130 – 260 195

System Analyst 130 – 260 195

Solution Architect 195 – 325 260

Application Development Manager 325 – 390 357.5

Head of Application Development 325 – 520 422.5


Infrastructure Manager 260 – 325 292.5

Head of Infrastructure 390 – 585 487.5


Business Analyst 130 – 325 227.5

Project Manager 325 – 650 487.5

Project/Programme Director 650 – 1,300 975


IT Manager 260 – 520 390

IT Director 650 – 1,300 975

Chief Technology Officer 1,040 – 1,820 1,430

Commerce

Development, Design & Architecture

Infrastructure/Network

Project Management

General Management

TECHNOLOGY

Salary Benchmarks




IT Helpdesk 104 – 195 149.5

Desktop Support Analyst 104 – 195 149.5

System Administrator 104 – 195 149.5

Service Desk Manager 195 – 260 227.5

Head of Operations and Support 325 – 390 357.5

Commerce

Support/Administration

TECHNOLOGY

INDONESIA

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