Indonesia, with over 240 million people and rich of natural resources and abundant human resources, is very attractive for investors operating in wide array of industries. Many reports on Human Resource Management (HRM) and the English journals have written about the developing countries in Europe, Africa, and Asia (countries such as Hong Kong, China, and India), but surprisingly, writing on HRM issues in Indonesia has been rare and mainly limited to labor economics and macro-level Human Resources Development. Therefore, this thesis intends to make a contribution to literatures of HRM issues in Indonesia, with the example for German companies which are establishing their subsidiaries in Indonesia. This book examines Human Resource Management Issues in Indonesia from environment context such as political, economical, socio-cultural, technological, environmental and legal perspective (PESTEL Analysis); culture dimension difference between Indonesia and Germany; and the current issues of managing human resources in Indonesia by firms, especially for multinational companies, such as issues of general condition of labors, recruitment and selection process, compensation appraisal, performance management, trade unions and gender. Regarding HRM issues, the study has also shown that foreign companies have many threats, if they establish their subsidiaries in Indonesia. But on the other hand, Indonesia has some strengths and already improved some essential sectors that should be considered as opportunities for foreign companies, such as abundance in labors, rich natural resources, good international relationships, increasing foreign trades and FDI, growing telecommunication development, and starts improving national education and health. As conclusion, the HRM issues for foreign companies establishing a subsidiary in Indonesia are very complex, especially due to environment aspects and culture dimension difference. However, through understanding culture dimension of Indonesian societies, use the opportunities and minimize the risks, managing people in Indonesia is not an impossible mission.

"This edited volume examines how forces of globalization, demographic and technological change are manifested and accommodated in an emerging economy such as Indonesia, which has a large workforce pool. Using the human resource development framework, the book explains the opportunities and challenges in developing human capabilities to support current and future living standards. It looks at human development challenges across the spectrum of workforce skills and across the spectrum of formal and informal labour markets. Through the case study on Indonesia, this book presents many of the features and issues that are present in emerging economies as they grapple with human resource development in the globalized and networked era. This book will appeal to researchers and policy makers working in the areas of human resource and economic development"--

The topics of unemployment, underemployment, wage trends and patterns, and the relationship between poverty and the labour market are of interest to all policy makers, researchers, academics and journalists concerned with economic development. This book traces the evolution of the Indonesian labour market between the early 1970s and late 2000s. This entails a (a) review of macroeconomic policies and their employment impact; (b) review of unemployment and underemployment trends; (c) review of wage trends and living standards; (d) relationship between poverty, inequality and the labour market; and (e) labour market regulations, employment and the business environment. The book comes up with a number of policy-relevant findings. Macroeconomic policies, particularly inflation targeting in the 2000-2007 period, have not been conducive to employment generation. The assumption that unemployment is an appropriate indicator of labour market performance and, more importantly, that it is closely aligned with poverty, is shown to be inaccurate. Sustained real wage growth in the twenty-year period before the 1997 financial crisis is contrasted with the lack of improvement since then, a period otherwise of respectable economic growth by international standards. The predicted adverse consequences of sweeping labour market regulations in 2000-2007 on properly measured employment, unemployment and labour costs did not materialize, mainly because of low compliance. It seems that a restrictive macroeconomic framework has been more constraining for employment growth than the perceived labour market rigidity during the post-crisis period. The book concludes with an evaluation of several ‘reactive’ and ‘proactive’ labour market policies. Though these are complementary, policy makers in Indonesia have probably put too much emphasis on reactive policies such minimum wage and severance pay, and not enough on proactive policies aimed at creating an adaptable and skilled workforce.

This book provides readers with a comprehensive introduction to human resource development (HRD) in Southeast Asia and offers a holistic framework for the phenomenon of Regional HRD in Southeast Asia. It argues that viewing HRD in ASEAN as a complex adaptive system is the most effective way to understand the expansive and multifarious processes and activities involved in Regional HRD. As a region, Southeast Asia continues to emerge as one of the most dynamic and compelling in the world with a need to develop its human resources to further its independence, economic prosperity, and sovereignty. By focusing on a regional perspective of HRD, this book establishes the missing link in the transition from the national HRD to the global HRD perspective. Offering a framework for understanding how HRD policy and practice function within a dynamic ecosystem, this book appeals to scholars, practitioners, and policymakers alike, particularly those interested in ASEAN.

In an era that has brought new and unexpected challenges for virtually every company, one would be hard-pressed to find any responsible manager who is not thinking about what the future will bring. In the wake of these challenges, strategic planning has moved from being the reserve of large corporations to becoming an essential need for even small and medium-sized enterprises. But what good is even the most convincing strategic concept if the company’s people are unwilling or unable to put it into practice? The key is to develop people, and to develop them not only for the work of today, but also for the challenges that the future holds. Strategic HR development has become a decisive force for the success of any business. This book, edited by Matthias T. Meifert, shows us which basic considerations we need to remember and what strategic HR development means in practice. Its interesting and vivid approach takes the reader on a tour of the eight stages of HR development, introduces the critical factors, and highlights many practical recommendations for strategic HR development practice in business.