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. This has been partially due to economic instability and the restrictions on organisations being able to import foreign HR leadership. Indonesia is now experiencing a boom in economic development, and due to the shortage of strong HR practitioners, top talent is at a premium and notoriously difficult to attract. With Mining and Resources, Financial Services, Technology, Consumer Goods, and Tourism leading the way in HR investment, we expect to see an ongoing upgrading of the HR function over time.
HR in Indonesia can be highly localised, with most key HR decisions tending to be pushed down from the regional level. While the majority of HR professionals are focused on tactical HR leadership, an increasing number are being seconded to other South East Asian countries or are being exposed to regional project work from Jakarta. These internationally experienced Indonesian HR practitioners are particularly sought after in Indonesia for key HR leadership positions with local or multinational companies.