Enhancing Labor Productivity through SDG-Based Policies in Indonesia: The Role of the Manpower Office in Indramayu Regency Research Article

Enhancing Labor Productivity through SDG-Based Policies in Indonesia: The Role of the Manpower Office in Indramayu Regency Research Article

Idrus Jamalulel

Chaoyang University of Technology, Taiwan, Republic of China

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90400056

Received: 14 March 2025; Accepted: 25 March 2025; Published: 28 April 2025

ABSTRACT

The study was to investigate the implementation of the Sustainable Development Goals (SDGs) Program by the Department of Manpower in Indramayu, focusing on how this program influences labor productivity. The descriptive analysis method allowed for a detailed examination of the current state of the SDGs program implementation and its impact on labor productivity. 100 employees from Indramayu district took part in the survey selected via Google Forms and analyzed by SPSS 23 program. The research findings revealed that the SDGs program implementation by the Department of Manpower in Indramayu District was generally effective. These results indicate that the SDGs program has positively influenced labor productivity in the district. Several practical and managerial implications were identified based on the study’s findings: which are Budget Management, Facility and Infrastructure Improvement, Staff Augmentation, Entrepreneurship Programs, and Worker Quality Development. An initial limitation that should be acknowledged is related to the data presented in this paper and further research can analyze potential variables that researchers did not take in this study using different analysis models or improve with a larger sample. This research contributes original insights into the practical implementation of the Sustainable Development Goals (SDGs) program by the Department of Manpower in Indramayu District, specifically focusing on its impact on labor productivity.

Keywords: Policy Implementation, Sustainable Development Goals, Labor Productivity

INTRODUCTION

Indonesia, as one of the developing countries, continues to actively implement various development programs to improve the lives of its people. Economic development is one of the important elements in national development (Muhammad Hasan & Muhammad Azis, 2018). Increasing productivity is the main key to achieving sustainable economic growth. To realize this, a country’s economic system must be able to increase productivity in various sectors such as manufacturing, agriculture, services, transportation, communication, and construction. Productivity in these sectors is influenced by various factors, including labor, infrastructure, regulation, and political stability.

However, Indonesia still faces major challenges in improving labor productivity. Vice President Ma’ruf Amin revealed that Indonesia’s labor productivity is still very low. Data from the Asian Productivity Organization (APO) in the 2019 APO Productivity Data Book shows that Indonesia’s productivity per worker only reaches USD 26,000, far below Singapore which reaches USD 142,300. Minister of Manpower Ida Fauziyah also highlighted the low productivity of Indonesian labor compared to other lower-middle-income countries. This is a serious problem that must be addressed immediately so that Indonesia can compete globally.

Unemployment, especially among secondary education graduates, is also an issue that needs special attention. Data from the Indramayu Regency Central Bureau of Statistics shows that the open unemployment rate in the area is still relatively high although it has decreased from 2017 to 2019. Many secondary education graduates have not been absorbed by employment, resulting in a high rate of educated unemployment. The lack of information about job vacancies and the high number of Indonesian workers who work abroad indicate the need to improve the quality and qualifications of the workforce to match market demand.

As a form of the government’s commitment to achieving sustainable development goals, President Joko Widodo has signed Presidential Regulation No. 59/2017 on the Implementation of Achieving Sustainable Development Goals (SDGs). The SDGs, with 17 goals and 169 targets, are a global agreement that aims to improve the welfare of the world community, including Indonesia. One of the goals of the SDGs is to increase inclusive and sustainable economic growth and create productive and decent work opportunities for all.

However, the implementation of the SDGs in Indonesia still faces many challenges. The high unemployment rate, the low quality of the workforce, and the mismatch between educational qualifications and labor market needs are the main obstacles to achieving these goals. Therefore, this study aims to evaluate the implementation of the SDGs policy by the Manpower Office in Indramayu Regency in improving labor productivity, identify factors that hinder the implementation of the policy, and find efforts that can be made to overcome these obstacles.

This research is expected to make a significant contribution to improving labor productivity in Indramayu Regency so that it can support the achievement of sustainable development goals in Indonesia as a whole.

LITERATURE REVIEW

Public Policy Implementation

The concept of implementation in Webster’s big dictionary is to implement means to provide the means for carrying out and to give practical effect. Implementation is the process of transforming a plan into practice (Harbani Pasolong, 2008). The main essence of implementation is those Activities directed toward putting a program into effect” (the process of realizing the program to show the results). Based on several definitions submitted by the experts above, it is concluded that implementation is an activity or effort carried out by policy implementers in the hope of obtaining a result that is by the goals or objectives of a policy.

Policy Implementation Approach Model

Here are some models of policy implementation approaches according to experts, including the following:

1. Jeffrey Pressman and Aaron Wildavsky’s Approach

Pressman and Wildavsky’s work is the first implementation model to appear. Their paper entitled Implementation (1973) states that successful implementation depends on the interrelationships between the various organizations and departments at the local level involved in implementation. Therefore, cooperation, coordination, and control play a very important role.

2. Merilee S. Grindle Approach: Content of Policy and Context of Implementation (1980)
3. Donald Van Meter and Carl Van Horn Approach: A Theoretical Perspective of the Policy Implementation Process (1975)

Policy implementation encompasses those actions by public and private individuals (or groups) that are directed at the achievement of objectives outlined in the prior policy decisions. This includes both one-time efforts to transform decisions into operational terms, as well as continuing efforts to achieve the large and small changes mandated by policy decisions.

Sustainable Development Goals (SDGs) Program

The concept of sustainable development was agreed upon in 1987 by the Brundtland Commission of the United Nations. In its report entitled “Our Common Future”, the world’s concern about environmental degradation due to development is expressed as follows:

“The current trend of development has resulted in more poor people and more susceptible to disease and has damaged the environment. How can such development serve a world in the next century with twice the population and still rely on the same environment?”

Recognizing these global environmental problems, the concept of sustainable development was formulated. Here is the definition of sustainable development.

“Sustainable Development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs”

Keiner elaborates on the definition of sustainable development as follows:

“Sustainable development means ensuring dignified living conditions about human rights by creating and maintaining a wide range or alternative access in planning life patterns. The principle of equity between present and future generations must be taken into consideration in the use of environmental, economic and social resources. Comprehensive protection of biodiversity and genetic diversity should also be considered.”

The above definition shows that sustainable development considers the pattern of development and first, the importance of taking into account the constraints of natural resources utilized in development activities as well as the constraints of improving welfare for present and future generations.

Objectives of the Sustainable Development Goals (SDGs) Program in the Employment Sector

The preparation of the SDGs has several challenges because there are still several points of the MDGs targets that have not been achieved and must be continued in the SDGs. The SDGs agenda until 2030 has 17 goals and 169 targets that must be achieved and related to employment the 8th SDG goal, is to support inclusive and sustainable economic growth, full and productive labor, and decent work for all (decent work and economic growth). There are 10 targets of the 8th SDGs goal, which are as follows:

Maintain economic growth per capita by national circumstances and, in particular, maintain at least seven percent growth in gross domestic product per year in the least developed countries.

Achieve higher levels of economic productivity through certification, technological upgrading, and innovation, including through a focus on value-added and labor-intensive sectors.

Promote development-oriented policies that support productive activities, job creation, entrepreneurship, creativity and innovation, and encourage the establishment and growth of micro, small, and medium enterprises, including through access to financing services.

Progressively improve, by 2030, global resource efficiency in consumption and production and seek to decouple economic growth from environmental degradation, under the 10-year framework program on sustainable consumption and production, spearheaded by developed countries.

By 2030, achieve full and productive employment and decent work for all women and men, including for youth and persons with disabilities, as well as equal pay for work of equal value.

By 2020, substantially reduce the proportion of young people who are not in employment, education, or training.

Take immediate and effective measures to eradicate forced labor, end modern slavery and human trafficking, and enforce the prohibition and elimination of the worst forms of child labor, including the recruitment and use of child soldiers, and by 2025 end all forms of child labor.

Protect workers’ rights and promote a safe working environment for all workers, in particular for women migrant workers, and workers in precarious situations.

By 2030, design and implement policies that support sustainable tourism that creates jobs while supporting local cultures and products.

Strengthen the capacity of domestic financial institutions to promote and expand access to banking, insurance, and financing services for all.

Labor Productivity

An organization is productive if it achieves its goals and does so by transferring inputs to outputs at the lowest cost. As such, productivity implies a concern for both effectiveness and efficiency.

In this case, Robbin says an organization is said to be productive if it achieves its goals, and achieves them by making efforts to transform inputs into outputs at the lowest cost.

Work productivity is the ability to get the maximum benefit from available facilities and infrastructure by producing optimal and maximum output (Siagian, 2002).

From this definition, it can be seen that work productivity is a psychological attitude, always believing that the quality of life today must be better than yesterday, and the quality of life tomorrow must be better than today.

The issue of work productivity is inseparable from the right of every worker to obtain employment opportunities to enjoy a decent life as a person. The right to be able to enjoy a decent life for labor cannot possibly be obtained without a guarantee or sufficient wages supported by high labor productivity.

Factors affecting productivity 

Many factors can influence the increase in productivity of a company. Eleven factors influence productivity (Irham Fahmi, 2016). The main factors that determine work productivity according to the Regional Productivity Development Center (Mulyadi, 2010) are as follows: work attitude, skill level, the relationship between the workforce and the organization’s leadership, productivity management, labor efficiency, and entrepreneurship.

To improve work productivity, a company needs to pay attention to factors that affect work productivity, from some of the opinions above, namely education and training, motivation, skills, cooperation, and loyalty to the company (Anoraga, 2007).

Productivity Improvement Efforts

Increasing work productivity can be seen as a behavioral problem, but it can also contain technical aspects. The factors improving the quality of the work carried out by employees, and empowering human resources is the most important elements in the organization (Edi Sutrisno, 2011).

Research Framework

In this study, implementing a policy depends on the policy content and implementation context, then the indicators that influence it are the content of the policy which includes, Interests affected by the policy, Type of benefits to be generated; Level of desired change; Position of policymakers; Program implementers; Resources deployed. And the Implementation Context which includes, Power, Interests and strategies of the actors involved; Characteristics of institutions and authorities; and Compliance and responsiveness (Dewi, 2016). Meanwhile, work productivity is the ability to get the maximum benefit from available facilities and infrastructure by producing optimal and maximum output (Siagian, 2002).

Figure 1. Proposed Research Framework

Hypothesis

Based on this framework, the researcher proposes the following research hypothesis: If the implementation of the sustainable development goals (SDGs) program policy by the Manpower Office is carried out based on the policy implementation model, then labor productivity in Indramayu Regency will increase.

METHODOLOGY

A research method is a scientific way to get data with specific purposes and uses (Sugiyono, 2013). In the preparation of this study, researchers used descriptive analysis methods, namely, statistics used to analyze data by describing or describing the data that has been collected as it is without intending to make general conclusions or generalizations (Sugiyono, 2014). This study used SPSS 23 for data analysis. Descriptive statistics, such as mean and standard deviation, were used to summarize the data. Additionally, inferential statistical tests was conducted to examine relationships between SDG-based policies and labor productivity. Data was cleaned and checked for missing values before analysis to ensure accuracy

Sample and Data Collection

The sample is part of the number and character possessed by the population. In this study, the sampling technique used was purposive sampling, which is a sampling technique with certain considerations or criteria. Purposive Sampling is a sampling technique with certain considerations. To calculate the number of samples from a particular population (Sugiyono, 2016), In this research, the author used the Slovin formula. If rounded, the minimum sample size from a population of 818,449 at a margin of error of 10% is 100 workers in Indramayu Regency. This study surveyed 100 conveniently selected workers from different departments to ensure a diverse sample.

Measurement Instrument

The online questionnaire has five sections: demographic information (age, gender, occupation, and work experience). The questionnaire items are adopted from prior studies with modifications as needed. First, this study uses 18 items to measure implementation policy variables (Rahayu, 2016). And, this study uses 15 items to measure labor productivity variables (Siagian, 2002). However, the author changed the wording to fit the purpose of this study and employed a Likert scale from 1 [strongly disagree] to 5 [strongly agree].

Analysis Technique

The study employs a quantitative analytical approach to address the proposed hypothesis.

In analyzing descriptive research data using the following steps:

1. Respondents’ answers to each question were analyzed using tabulation using the presentation formula and given a score for each answer.
2. Interpreting the results of the answer score into high, medium, and low categories first makes an index list, namely by first determining the minimum index, maximum index, range, and class boundaries After using these guidelines, five levels of criteria are determined. These categories are defined as Very Good, Good, enough, Less Good, and Not Good.
3. Calculating the recapitulation of the answer scores from the implementation of the research variables.
4. Calculating the percentage of cumulative scores

Validity and Reliability

To test the validity of the statement instrument in the study can be done by calculating the correlation between the statement item score and the total score of all statement items with Pearson product moment. Furthermore, determining the validity criteria, the validity criteria are carried out by comparing the correlation coefficient “r” _(〖”xy” 〗^) with the r Product Moment table at df (n-2), α = 0.05. If “r” _(〖”xy” 〗^ ) > the value of the r table, then the statement instrument is declared VALID.

Then the researcher calculated the validity of the variable X and variable Y statement items with a trial of respondents (n) = 100 people, r so that at db = N-2 (100-2 = 98), “”r” _(〖”tabel” 〗^ )= 0.196 using the SPSS programs. Based on Table 1. all of the questionnaire items from Variable X are declared “Valid”. And Based on Table 2. All of the questionnaire items from Variable Y are declared “Valid”.

To test the internal reliability of the statement instrument in this study can be done using the Cronbach Alpha method. Based on Table 3, the results calculations on the instrument statement of the Policy Implementation Variable, an alpha value of 0.869 was obtained and the Productivity Efforts Variable obtained an alpha of 0.791, so based on the value of α > “r” _(〖”tabel” 〗^ )=, the instrument was declared “RELIABLE”.

Table 1. Validity Test Variable X (Implementation Policy)

Table 2. Validity Test Variable Y (Productivity Efforts)

Table 3. Reliability Test

RESULTS & DISCUSSION

Implementation Policy of SDGs Program

Based on the interval range of the results of the score tabulation above regarding respondents’ answers to the policy implementation variable of 7328 (81.4%), it can be categorized as good, but not running optimally.

Based on the results of researcher observations, through the policy implementation approach model by Merilee S. Grindle, there are obstacles to the limited resources needed to implement SDGs program policies such as policy implementers (employees), facilities and facilities, and sources of funds or budgets. In addition, policy socialization must also be improved. But in fact, the implementation of the SDGs program policy by the Indramayu Regency Manpower Office is quite good, such as the unemployment rate which continues to decline

every year, and labor productivity which continues to increase, this cannot be separated from the existence of good programs/policies and prioritizing the interests of the community by the Indramayu Regency Manpower Office such as job training, entrepreneurship training for former Indonesian Migrant Workers (PMI), labor apprenticeship programs, labor placement and so on. This is a reference for policy implementers to continue to improve performance to achieve programs/policies and encourage better changes. Developments that are increasing every year, are increasingly optimistic that the goals and targets in the Sustainable Development Goals (SDGs) Program, especially in the field of employment, will be achieved by 2030.

Labor Productivity Efforts

Based on the interval range of the tabulated score results above regarding respondents’ answers to the productivity improvement variable of 6214 (82.8%), so it can be categorized as good.

Based on the observations of researchers, through the determinants of success in efforts to increase productivity, labor productivity in Indramayu Regency is quite good, harmony between workers and the workplace will increase work productivity. Some problems are still encountered in inhibiting work productivity, namely that there are still many workers in Indramayu Regency who have not received a salary or income that is appropriate to their workload, the quality of the workforce needs to be improved through education and job training, and the educational qualifications of the workforce needed by the world of work. To increase community productivity in Indramayu Regency, of course, the community must be absorbed by the world of work by providing adequate employment opportunities. In addition to working as employees or laborers, for the community in Indramayu Regency to be productive, they should be given business or entrepreneurship training, so that they can earn income by becoming entrepreneurs. In addition, government support to increase productivity is the existence of regulations or policies that contain the interests of labor, such as labor welfare regulations, THR regulations and work allowances, social security policies and labor social protection, and other policies that bring benefits to labor. If these things can be maximally pursued, then the 8th goal in the Sustainable Development Goals (SDGs) program, namely supporting inclusive and sustainable economic growth, full and productive workforce and decent work for all (decent work and economic growth) will be achieved by 2030.

Factors that hinder the Implementation of the Sustainable Development Goals (SDGs) Program Policy by the Manpower Office towards Increasing Workforce Productivity in Indramayu Regency.

The inhibiting factors are as follows:

1. Limited funding sources or budgets to implement the policy so that there are programs to reduce the proportion of young people who are not working, not educated, or trained that have not been implemented optimally.
2. Inadequate facilities and infrastructure in implementing policies.
3. Limitations of policy implementers.
4. The unavailability of entrepreneurship programs or business training programs that reach all levels of society.
5. The quality of workers in Indramayu Regency is still low because there are still many people who have not received job training and educational qualifications that do not meet company requirements.

Efforts were made to overcome the factors that hinder the implementation of the Sustainable Development Goals (SDGs) Program Policy by the Manpower Office on Increasing Labor Productivity in the Indramayu Regency.

To overcome obstacles in the implementation of the Sustainable Development Goals (SDGs) program policy by the Manpower Office on Increasing Labor Productivity, efforts are needed. The efforts include the following:

1. The Indramayu Regency Manpower Office seeks to manage the budget for priority scale programs, especially the program to reduce the proportion of young people who are not working, not educated or trained so that it can be realized in 2020.
2. The Indramayu Regency Manpower Office tries its best to provide services to the community, related to facilities at the Job Training Center that have not supported the job training program, the agency cooperates with companies in Indramayu Regency so that job training participants get the opportunity to display their abilities by practicing directly in the company, while fostering good relations with the company. If they need workers, the company will contact the Indramayu Regency Manpower Office.
3. The Indramayu Regency Manpower Office coordinates with the local government, especially the Indramayu Regency Personnel and Human Resources Development Agency, to procure employees as policy implementers so that policy implementation can run optimally.
4. The Indramayu District Manpower Office will improve the entrepreneurship program policy as a whole to all levels of society. Currently, the entrepreneurship program is intended for former Indonesian Migrant Workers (PMI) to have skills and knowledge in entrepreneurship to increase productivity and get additional income for their family life.
5. Development of competency-based and community-based workforce quality both conducted by government and private LPK (Job Training Institution).

CONCLUSION

Based on the research conducted by the researcher regarding the implementation of the Sustainable Development Goals (SDGs) program policy by the Manpower Office towards increasing labor productivity in Indramayu District, the following conclusions can be drawn:

1. The implementation of the Sustainable Development Goals (SDGs) program policy by the Manpower Office towards increasing labor productivity in Indramayu District has been carried out well. This is evidenced by the results of the questionnaires distributed to respondents or workers from Indramayu District. The questionnaire consists of 2 (two) variables: Variable X (Policy Implementation) and Variable Y (Productivity Improvement). The Policy Implementation variable is based on 9 (nine) dimensions: interests affected by the policy, types of benefits to be generated, desired level of change, position of policy makers, program implementers, deployed resources, power, interests and strategies of involved actors, characteristics of institutions and rulers, and compliance and responsiveness, obtaining a score of 7328 with a percentage of 81.4%, categorized as agreeing or good. The productivity improvement variable is based on 4 (four) dimensions: continuous improvement, quality improvement of work results, empowerment of human resources, and organizational philosophy, obtaining a score of 6214 with a percentage of 82.8%, categorized as agreeing or good. Therefore, the implementation of the Sustainable Development Goals (SDGs) program policy by the Manpower Office towards increasing labor productivity in Indramayu District has been running well.
2. The obstacles encountered in the implementation of the Sustainable Development Goals (SDGs) program policy by the Manpower Office towards increasing labor productivity in Indramayu District include limited funding or budget, inadequate facilities and infrastructure for policy implementation, limited number of employees, lack of business training that reaches all layers of society, and low worker quality.
3. Efforts that need to be made to overcome the obstacles in the implementation of the Sustainable Development Goals (SDGs) program policy by the Manpower Office towards increasing labor productivity in Indramayu District include managing the budget for community interest policies, cooperating with companies in Indramayu District to obtain adequate job training facilities, coordinating with local government for employee procurement, enhancing entrepreneurship program policies comprehensively across all layers of society, and developing quality labor based on competence and community, providing worker certification, and job placement.

RECOMMENDATIONS/IMPLICATIONS

Based on the conclusions outlined, the researcher makes the following recommendations and Implications:

1. The Sustainable Development Goals (SDGs) program, particularly in the field of employment, can serve as a reference for addressing labor issues. The government through the Manpower Office should have a labor database in Indramayu District as a reference/guideline in assisting the implementation of programs based on strategic issues that need immediate resolution and finding solutions. The community should not only work but also open business opportunities, requiring an increase in entrepreneurial training to produce entrepreneurs who can boost productivity and increase income.
2. Workers are entitled to receive appropriate wages by the District Minimum Wage (UMK). Based on policies and programs that can enhance labor productivity, the government must prioritize worker welfare such as social security, salaries/wages, and other worker benefits.
3. Establishing relationships with companies in Indramayu District to build good cooperation, such as providing facilities for policy and program interests to enhance cooperation in job exchanges and creating good industrial relations.
4. To improve labor productivity, labor issues in the SDGs program need further studies by the Manpower Office to maximize the implementation of employment-related policies.
5. Further research should focus on several key areas: (1) the long-term effects of SDG-based labor policies on workforce productivity, (2) the role of digitalization and automation in enhancing labor efficiency, (3) the impact of policy implementation across different industries in Indramayu Regency, and (4) how workforce training and education initiatives can support sustainable economic growth. Expanding research in these areas will provide a more comprehensive understanding of labor productivity in the context of SDG policies.

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