ALSA 2025 meeting

Female labour force participation in Indonesia remains substantially lower than that of men, a disparity often attributed to socio-cultural norms and educational attainment. However, an underexamined structural barrier is the absence of affordable and accessible childcare facilities, a longstanding issue due to the lack of a comprehensive childcare policy in Indonesia.

In 2024, the Indonesian government enacted Undang-Undang Kesejahteraan Ibu dan Anak Pada Fase Seribu Hari Pertama Kehidupan (UU KIA), in which one of its provisions formally recognises women workers’ right to childcare. However, there has been no technical regulation which ensures the implementation of the rules. As a result, women who choose to work are still compelled to bear the high cost of childcare services. This “pay to work” dynamic penalises working women, constraining their labour market participation and reinforcing gendered economic inequality.

Drawing on comprehensive reviews of policy related to carework and childcare in Indonesia, this study argues that, without clear regulations and policies on childcare subsidies, the prohibitive cost of care will continue to exclude women from employment. To realise the promise of UU KIA and narrow the gender gap in labour force participation, the Indonesian government must urgently develop technical guidelines that mandate affordable childcare provision.