According to the United Nations (UN), the greater involvement of women in a nation’s economy correlates with improved societal well-being. Data from the Central Statistics Agency (BPS) reveals a notable advancement in the Female Labor Force Participation Rate (FLFPR) over the past decade. In 2013, the FLFPR for women stood at 49.9%, while for men it was 83.6%. Fast forward ten years to 2023, and the FLFPR for women increased to 60.2%, with men at 86.9%. This surge in female workforce participation aligns harmoniously with the ascending income levels. World Bank statistics indicate Indonesia’s GDP surpassed US$1 trillion in 2018, climbing steadily to US$1.4 trillion by 2023. On a global scale (as per the UN), women earn on average 23% less than men in the workforce and dedicate three times more unpaid hours to work than men.
Empowering women economically not only expands the labor force but also augments labor productivity. Picture the economy as a colossal machine with inputs like capital, labor, and technology. These inputs constitute the factors of production, driving the economy’s output through a production function. By enhancing the utilization of factors such as capital, labor, and technology, economic output experiences an upswing.
However, akin to a tree’s finite growth, the available pool of labor and its corresponding working hours are limited. Each job necessitates specific skills and knowledge. Merely increasing the extraction of labor from this pool won’t adequately meet the skill requisites of jobs. Thus, elevating women’s role as a component of the labor force factor of production is imperative for augmenting job opportunities.
Moreover, the technological and skill endowment resulting from this empowerment fosters heightened creativity, thereby catalyzing technological advancement and amplifying economic output. Yet, many initiatives falter at this juncture. Several developed nations find themselves ensnared in empowering women within a fixed timeframe, which is ultimately unsustainable. Jay Forrester, a System Dynamics luminary, posits that most system problems stem from internal rather than external sources. In essence, enlarging the labor pool sans sustainability considerations can yield adverse long-term repercussions.
In conclusion, women’s empowerment in the economy extends beyond broadening the labor pool and enhancing skills and knowledge. It encompasses policies that ensure the smooth regeneration of economic actors. This entails initiatives like combatting child stunting, promoting maternal and child health, facilitating early childhood education, and supporting elderly productivity, all aligned with broader economic strategies. Without such measures, we risk witnessing economic stagnation, as evidenced by various developed nations globally. Embracing Kartini’s legacy serves as a beacon for elevating women’s pivotal role in propelling Indonesia towards greater brilliance.
