INDONESIA
2005 All Industries Survey – Non Executive
About the Survey
Mercer Human Resource Consulting is pleased to present the 2005 Indonesia All
Industries Survey.
All Industries Survey Profile
Organizations Participating in Survey 213
Incumbents Represented 100,933
If You Have Questions
If you have questions regarding the survey or the report, please contact the Survey
Manager, Abdul Hafizh at (+62-21) 5790 5566 or email Abdul.Hafizh@mercer.com
Confidentiality
To ensure the confidentiality of all data, a minimum number of observations are
required in order for statistics to be displayed. Three organizations must report at
least three observations for a variable in order for the mean to be displayed. Four
organizations and four observations are required for display of the median. Five
organizations reporting at least five observations is required to display 25th and
75th percentiles. In order for the 10th and 90th percentiles to display, five
organizations reporting at least 10 observations are required. Where there has
been insufficient data for analysis, this has been indicated with "-".
Human resource professionals who deal regularly with surveys are aware of the
variance that may exist in survey data. Data may fluctuate slightly from year to
year due to changes in the participant base. It is also important to note that within
a sample, a significant amount of data may be reported by one organization. It is
possible for data to change drastically from year to year due to industry-related
factors and economic conditions. Numerous layoffs and changes in pay policies
may significantly influence fluctuations in salary survey data.
©Mercer Human Resource Consulting, LLC.
Overview
About the Report
The report is divided into sections, described below.
Overview – Provides information on the following:
• List of participating organizations
• Participant Profile
• Economic Trends and Indicators
• Salary Movement Trends
• Staffing Trends
• Starting Salaries Trends
Incentives and Benefits Prevalence - Provides an overview of the prevalence
and practices and policies regarding short- and long-term incentives and benefits
plans.
Regression Analysis - Provides the regression analysis based on actual market
data and Mercer's International Position Evaluation (IPE) classifications.
Regressed Market Table-Displays regressed statistics. Regression lines are
based on individual incumbent data following Mercer’s standard process. A
process has been implemented that reduces the influence of organizations
reporting a large sample size relative to other participants. This differs from the
data in the “Actual Market Data by Position Class” report which represents all data.
Pre-established Actual Market Data Reports - Provides the statistical analysis of
actual market data for the survey positions.
Survey Methodology - Provides a description of the methodology used in
analyzing the data collected and definitions of all variables and statistics included
in the survey report. The valuation methodology for determining benefit values and
the values for long-term incentives are also described.
Overview - 1
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2005 All Industries Survey – Non Executive

List of Participating Organizations Chemical Survey (Continued)

20. Chandra Asri
Automotive Survey * 21. Ciba Specialty Chemicals Indonesia
(10 participants)
22. Clariant Indonesia
1. Astra Honda Motor 23. Cognis Indonesia
2. Astra International 24. DIC Astra Chemicals
3. BMW Indonesia 25. Dow Chemical Indonesia
4. DaimlerChrysler Indonesia 26. Dupont Indonesia
5. Delphi Automotive Systems 27. DyStar Colours Indonesia
6. Ford Motor Indonesia 28. EAC Indonesia
7. General Motors Indonesia 29. Essence Indonesia
8. Indomobil Suzuki International 30. Hercules Chemicals Indonesia
9. Nissan Motor Indonesia 31. Huntsman Indonesia
10. Yamaha Indonesia Motor Manufacturing 32. Lautan Luas
33. Lautan Otsuka Chemical
Chemical Survey 34. Mitsubishi Chemical Indonesia
(34 participants) 35. Monsanto Indonesia

11. Air Products Indonesia 36. Nalco Indonesia

12. Akzo Nobel Car Refinishes 37. National Starch And Chemical

13. Amoco Mitsui PTA Indonesia 38. Nuplex Raung Resins

14. Asahimas Chemical 39. Petrokimia Nusantara Interindo

15. BASF Indonesia 40. Quest International Indonesia

16. Bayer Indonesia 41. Rohm and Haas Indonesia

17. BOC Gases Indonesia 42. Sorini Corporation

18. Cabot Indonesia 43. Syngenta Indonesia

19. Celanese Rep Office 44. Tri Polyta Indonesia

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 INDONESIA Overview
2005 All Industries Survey – Non Executive

Consumer Goods Survey * Consumer Goods Survey (Continued)

(41 participants)
67. L'oreal Indonesia
45. AB Food & Beverages 68. Mayora Group
46. Adidas-Salomon International Sourcing Limited - Indonesia 69. Mead Johnson Indonesia
Representative Office 70. Nestle Indonesia
47. Amerta Indah Otsuka 71. New Zealand Milk
48. Arnott's Indonesia 72. Nutricia Indonesia
49. Avon Indonesia 73. Nutrifood
50. BAT Indonesia 74. PepsiCo
51. Cadbury Indonesia 75. Perfetti Van Melle Indonesia
52. Coca Cola Distribusi Indonesia 76. Philip Morris Indonesia
53. Coca Cola Indonesia 77. Procter & Gamble Indonesia
54. Danone Biscuits Indonesia 78. Reckitt Benckiser Indonesia
55. Danone Dairy 79. Reebok Worldwide Trading Co..
56. Effem Indonesia 80. SanMiguelPureFoods
57. Frisian Flag Indonesia 81. Sara Lee
58. Handjaya Mandala Sampoerna 82. Tirta Investama (AQUA)
59. Heinz ABC Indonesia 83. Trigaris Sportindo
60. IKEA Trading (Hongkong) Ltd - Indonesia Rep Office 84. Tupperware Indonesia
61. ISM Bogasari Flour Mills 85. Unilever Indonesia
62. Johnson & Johnson Indonesia
63. Johnson Home Hygiene Products Hi-Tech Survey
64. Kao Indonesia (22 participants)
65. Kimberly-Lever Indonesia
86. Accenture Indonesia
66. Kraft Foods
87. Acer Indonesia
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Hi-Tech Survey (Continued) Life Insurance Survey

(11 participants)
#
88. Alcatel Indonesia
89. SCS Astra Graphia 108. Astra CMG Life

90. AT & T Global Network Services Indonesia 109. Asuransi AIA Indonesia

91. Cisco System Indonesia 110. Asuransi AIG Lippo Life

92. Convergys Indonesia 111. Asuransi Allianz Life Indonesia

93. Dell Computer Indonesia 112. Asuransi Cigna

94. Ericsson Indonesia

# 113. Asuransi Jiwa Sequis Life

95. HP Indonesia 114. AXA Services Indonesia

96. Intel Indonesia 115. Manulife Indonesia

97. Metrodata Electronics 116. MLC Indonesia

98. Metso Automation Indonesia 117. Prudential Life Assurance

99. Microsoft Indonesia 118. Sun Life Financial Indonesia

100. Mincom Indoservices

101. Motorola Indonesia
# Oil & Mining Survey
(15 participants)
102. Multipolar Corporation
103. NCR Indonesia 119. Arutmin Indonesia
#
104. Nokia Indonesia 120. Baker Hughes Indonesia
105. SAP Indonesia 121. Berau Coal
106. SAS International Indonesia 122. BHP Billiton
107. Sun Microsystems Indonesia 123. BP Upstream Indonesia
#
Included in Telecommunication Survey 124. Caltex Oil Indonesia
125. Castrol Indonesia
126. Freeport Indonesia
127. International Nickel
128. Kaltim Prima Coal
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Oil & Mining Survey (Continued) Pharmaceutical Survey (Continued)

129. Kridapetra Graha (Shell) 150. Merck Indonesia

130. Newmont Nusa Tenggara 151. Merck Sharp & Dohme (Asia) Representative Office
131. Rio Tinto Indonesia 152. Novartis Biochemie
132. Tambang Batubara Bukit Asam 153. Novo Nordisk Indonesia
133. Unocal Indonesia 154. Organon Indonesia
155. Otsuka Indonesia
Pharmaceutical Survey 156. Pfizer Indonesia
(34 participants) 157. Medifarma Laboratories, Inc.

134. Abbott Indonesia 158. Roche Indonesia

135. Alpharma 159. Sanofi-Synthelabo Combiphar

136. Astellas Pharma Indonesia 160. Schering Indonesia

137. Astrazeneca Pharmaceuticals Indonesia 161. Schering Plough Indonesia

138. Aventis Pasteur 162. Sterling Products Indonesia

139. Aventis Pharma 163. Takeda Indonesia

140. Bayer Indonesia (Pharma) 164. Tanabe-Abadi

141. Boehringer Ingelheim Indonesia 165. Transfarma Medica Indah

142. Bristol-Myers Squibb 166. Union Chemical Belgium (UCB)

143. Eisai Indonesia 167. Wyeth Indonesia

144. Eli Lilly

145. GlaxoSmithKline Indonesia
Sales & Manufacturing Survey (Continued)
(71 participants)
146. Janssen Pharmaceutica (* Includes Automotive and Consumer Goods Survey)
147. Laboratoires Fournier
168. 3M Indonesia, PT
148. Les Laboratories Servier Indonesia
169. ABB Sakti Industri
149. Meiji Indonesian Pharmaceutical Industries
170. Argha Karya Prima Industry
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2005 All Industries Survey – Non Executive

Sales & Manufacturing Survey (Continued) Telecommunication Survey (Continued)

(* Includes Automotive and Consumer Goods Survey) 192. Siemens Indonesia
193. Telekomunikasi Indonesia
171. Asahimas Flat Glass
194. Telekomunikasi Selular
172. Atlas Copco Indonesia
173. Caterpillar Asia (Indonesia)
Others Survey
174. Doulton (19 participants)
175. Frigorex Indonesia 195. AC Nielsen Indonesia
176. General Electric Indonesia 196. Alcon Laboratories - Indonesia
177. Husky Injection Molding Systems Indonesia 197. Austindo Nusantara Jaya
178. Komatsu Indonesia 198. Becton Dickinson Indonesia
179. Mattel Indonesia 199. Cargill Indonesia
180. Mecoindo 200. Cikarang Listrindo
181. NatSteel Electronics Indonesia (Solectron) 201. Dexa Medica
182. Philips Indonesia 202. DHL Express (Birotika Semesta)
183. Raja Garuda Mas International Corp. 203. Exel Indonesia
184. Schneider Indonesia 204. Johnson & Johnson Indonesia, Medical Division
185. Sony Indonesia 205. Keppel Land
186. Tetra Pak Indonesia 206. Maersk Indonesia
187. YKK Indonesia 207. Panalpina World Transport (Indonesia)
208. Primus Financial Services
Telecommunication Survey 209. Skypak International (TNT)
(11 participants) 210. Sumitomo Indonesia

188. Aplikanusa Lintasarta 211. United Parcel Services Indonesia

189. Excelcomindo Pratama 212. UPS SCS Indonesia

190. Indosat 213. YTL Jawa Timur

191. Mobile-8
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2005 All Industries Survey – Non Executive

Participants Profile
Industry Sector Breakdown
Activity Analysis
Survey participants were categorized by industry types as shown in the table
below. Survey participants were categorized by industry types as shown in the table
*Percentage may not equal 100% due to rounding
below.

*Percentage may not equal 100% due to rounding

Industry Org Count Percent
Automotive 10 4.69% Type of Activity Org Count Percent
Chemical 34 15.96% Assembly & Sales 3 1.41%
Computer/IT 8 3.76% Manufacturing 19 8.92%
Electronics Manufacturing 1 0.47% Manufacturing & Sales 77 36.15%
Food & Beverages 22 10.33% Research & Development 1 0.47%
Insurance 11 5.16% Sales 1 0.47%
Logistics 7 3.29% Sales & Marketing 63 29.58%
Manufacturing 15 7.04% Services 28 13.15%
Mining 4 1.88% Combination of above 17 7.98%
Oil & Mining 11 5.16% Others 4 1.88%
Personal care 11 5.16%
TOTAL 213 100%
Pharmaceutical 37 17.37%
Power 1 0.47%
Property Management 1 0.47%
Software 5 2.35%
Telecommunications 13 6.10%
Tobacco 3 1.41%
Trading 4 1.88%
Utilities 4 1.88%
Others 11 5.16%
TOTAL 213 100%

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 INDONESIA Overview
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Organization Size
The following tables provide information about the size of the organizations
participating in the survey based on their reported annual gross revenue/sales (in
USD) and total employment.
*Percentage may not equal 100% due to rounding

Revenue/Sales in USD *Org Count *Percent

Less than $25 million 80 37.56%
$25 million to < $50 million 33 15.49%
$50 million to < $100 million 37 17.37%
$100 million to < $250 million 20 9.39%
$250 million to < $500 million 22 10.33%
$500 million to < $1000 million 6 2.82%
$1000 million to < $3000 million 12 5.63%
$3000 million & more 3 1.41%
Total 213 100%

* Percentage may not equal 100% due to rounding

Total Employment *Org Count *Percent

Less than 50 27 12.68%
50 to 99 27 12.68%
100 to 249 39 18.31%
250 to 499 52 24.41%
500 to 999 33 15.49%
1000 to 2999 18 8.45%
3000 to 4999 7 3.29%
5000 to 9999 7 3.29%
10,000 & more 3 1.41%
Total 213 100%

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 INDONESIA Overview
2005 All Industries Survey – Non Executive

Political Developments and Trends Economic Developments and Trends

Beginning August 2005 Indonesia experienced significant economic turbulence
which tested the political leadership and crisis management ability of President 2004 2005 2006
Susilo Bambang Yudhoyono’s (SBY) government. The recent economic woes (Actual) (Estimate) (Forecast)
seem to have raised renewed public concern on the ability of the government to
GDP Growth (%) 5.1 6.0 7.0
steer Indonesia towards a more sustainable economic and social development.
Inflation Rate (%) 6.4 9.0 7.0
Interestingly, given the current political climate where the President’s governing
coalition controls the parliament, SBY’s challenge resides not with the mechanism Rp/US$ - Year End 9,355 10,300 10,400
of the political elite but rather with the populace who are beginning to feel the Source: Castle Asia – Indonesia Program Report (September 2005)
heavy burden of the current economic hardships triggered by rising global oil
prices. Therefore, the issue of fuel price increases will continue to be at the center Indonesia’s recent economic volatility demonstrates that the relative macro
of policy debate until a more decisive judgment is taken. economic stability experienced in the past 3 years (dating back to President
Megawati’s administration) was actually built on still shaky foundations. In order to
Much of the current economic situation resulted from the fuel subsidies which get on sustained economic development, Indonesia needs to be able to tackle
create a larger bill for the government as it imports fuel that is trending more deep rooted structural issues. One most urgent among these issues focuses on
expensive by the day. Many economic analysts, both domestic and international, the eradication of corruption as well as improvement of the investment climate.
see significant reduction of the subsidies, coupled with a tighter monetary policy, in
order to increase financial market confidence in the economy. The risk remains Economic outlook for the rest of the year consists of further monetary tightening to
that SBY succumbs to populist pressures and fails to address the subsidy issue in increase confidence in the Rupiah and control inflationary pressures. The latest
a significant manner and further risks erosion of confidence in his government. move by BI to raise the benchmark rate to 10% reflects this trend and some
analysts see the benchmark rate would go as high as 11% by year end.
Another potential political development in the near future may involve the
reshuffling of the ministerial cabinet. The current problems with the economy, fuel The labor market will directly be impacted by expected rising inflation (mainly
distribution and energy shortages, and lack of progress in the fight against caused by the weakening of the Rupiah and higher expected fuel prices) and
corruption may trigger a cabinet reshuffle consistent with SBY’s inaugural promise generally projected slow down in the growth of the economy as a result of a higher
to evaluate his ministers after a year in office. interest rate situation.

Sources: Indonesia Country Program of August & September 2005, Castle Asia; Consensus
Economy of September 2005.

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2005 All Industries Survey – Non Executive

Labour Development and Trends The contribution rates applied to base salary are as follows:

2004 2005 2006 • 0.24% - 1.74% of monthly wage for occupational accidents plan
(depending on the nature of business);
(Actual) (Estimate) (Forecast)
Unemployment (%) 9.6 9.4 9.5 • 5.7% of monthly wage for old age pension plan, and employees contribute
2.0% while company contribute 3.7%;

Unemployment is still an unsolved problem. More investments are needed to
create new businesses and jobs opportunity. The increase in investment in Q1
has given a good sign but this has been slow. The country still needs more and
more investment to reduce the unemployment problem.
Tax and Social Security Developments and Trends
• 0.30% of monthly wage for death benefits plan;
• 3% (single) and 6% (married) for health benefit plan;
Sources: The Jakarta Post; Mercer Global Compensation Planning Report;
Worldwide Benefits & Employment Guidelines, 2004-2005 Edition and other print
media

Social Security

The Social Security system JAMSOSTEK was implemented in 1993 as a

replacement for ASTEK that had been in place since 1978. It covers personal
accident, life, and health and old age security benefits.

JAMSOSTEK is compulsory for companies with over 10 employees or with a

monthly payroll of at least IDR 1 million.

JAMSOSTEK policies for personal accident, life insurance and old age security
benefits are compulsory. However, companies may opt out of JAMSOSTEK’s
health benefits, as long as they provide a better programme than that offered by
JAMSOSTEK.

Currently, employers contribute to the four elements of JAMSOSTEK

(Occupational Accident, Death, Health Maintenance and Old Age). The employer’s
contribution rate for occupational accident varies depending on the company’s
industrial risk classification.

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 INDONESIA Overview
2005 All Industries Survey – Non Executive

Salary Movement Trends

The most common salary review dates are January (40.19% of the organizations surveyed) and April (33.49% of the organizations surveyed), while some organizations
conduct salary review on March (10.05% of the organizations surveyed).

Base Salary Increases

Base Salary Increases (%)

th
2004 (Actual) 25 Percentile Median 75th Percentile Average
Management 8.01 10.00 12.45 10.51
Professional (Sales) 8.93 10.00 12.38 11.01
Professional (Non Sales) 9.00 10.00 12.00 10.79
Staff 9.00 10.00 12.00 10.54
2005 (Estimated)
Management 9.00 10.00 12.00 10.89
Professional (Sales) 9.50 10.87 13.00 11.36
Professional (Non Sales) 9.00 10.00 12.00 10.80
Staff 9.00 10.05 12.60 11.03
2006 (Projected)
Management 10.00 10.21 12.38 11.21
Professional (Sales) 10.00 11.00 12.23 11.47
Professional (Non Sales) 10.00 10.50 12.50 11.38
Staff 10.00 11.00 13.00 11.68

#No company reported wage freeze

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Variable Bonus (excluding companies with no bonus)

*Variable Bonus is expressed as a percentage of Annual Base Salary, excluding profit sharing and commission.

Variable Bonus (% of Annual Base Salary)

2004 (Actual) 25th Percentile Median 75th Percentile Average

Management 10.94 15.38 23.08 19.60
Professional (Sales) 10.68 15.38 26.24 21.10
Professional (Non Sales) 7.70 13.90 20.00 16.56
Staff 7.70 13.00 18.63 15.79
2005 (Estimated)
Management 11.54 15.38 23.08 19.22
Professional (Sales) 11.15 15.38 24.04 21.14
Professional (Non Sales) 8.35 15.00 21.43 16.93
Staff 7.69 14.19 19.23 15.73
2006 (Projected)
Management 11.65 15.38 23.08 19.06
Professional (Sales) 9.74 15.38 23.08 19.03
Professional (Non Sales) 7.70 15.00 20.00 16.17
Staff 7.69 13.92 17.78 14.99

2004: 3 companies reported no bonus across the board, 1 company reported no bonus for Professional Sales and Staff categories, and 2 companies reported no bonus for
Professional Sales category.
2005: 2 companies reported no bonus across the board, 1 company reported no bonus for Professional Sales and Staff categories and 1 company reported no bonus for
Professional Sales category.
2006: 2 companies reported no bonus across the board, 1 company reported no bonus for Professional Sales and Staff categories and 1 company reported no bonus for
Professional Sales category.

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 INDONESIA Overview
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Staffing Trends

Hiring intention*
Companies indicated the following changes to their staffing over the next 3 months.

*Org
Hiring intentions *Percent
Count
Reducing 12 6.32%
No Change 72 37.89%
Recruiting / Adding 106 55.79%
TOTAL 190 100%
*Note: Not all companies were able to provide the requested information

Headcount Growth

Headcount Growth Average (%)

% headcount growth in last calendar year 2.83

*Note: Not all companies were able to provide the requested information. Data presented above is from 129 companies

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Turnover (Voluntary & Involuntary)

The summary of Voluntary and Involuntary Turnover among the surveyed participants is shown below:

• 2 companies streamlined their organization across position levels.

Voluntary Staff Turnover (Resignation) Average (%)

Management 4.51
Professional (Sales) 5.59
Professional (Non Sales) 4.45
Staff 4.98
Overall 6.11

Note: Not all companies were able to provide the requested information. Data presented above is from 144 companies

Involuntary Staff Turnover Average (%)

(Retrenchment)
Management 1.73
Professional (Sales) 4.85
Professional (Non Sales) 4.61
Staff 6.06
Overall 6.81

Note: Not all companies were able to provide the requested information. Data presented above is from 81 companies

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Starting Salary Trends - Graduates

Annual Base Salaries – Graduates
Starting salary information based on company policy. In practice, the rate may be deviated from policy, depending on company discretionary.

2004 IDR 2005 IDR

Master & PHD
Master (BA) 51,950,000 51,950,000
Master (Science) 51,950,000 51,950,000
PHD 65,000,000 65,000,000
Fresh University Graduates
Electronic Engineering 32,500,000 32,500,000
Mechanical Engineering 32,500,000 32,500,000
Chemical Engineering 32,500,000 32,500,000
Accountancy 26,000,000 28,152,150
Law 29,200,000 31,200,000
Computer Science 27,600,000 32,500,000
Sciences 27,600,000 29,625,000
Business Administration 26,800,000 29,625,000
Arts / Sciences 26,000,000 30,000,000
Fresh Diploma Holders
Engineering 19,500,000 19,500,000
Chemical Engineering 19,500,000 19,500,000
Chemical Process Technology 19,500,000 19,500,000
Biomedical Science 19,500,000 19,500,000
Biotechnology 19,500,000 19,500,000
Computer Science 18,700,000 19,500,000
Accountancy 19,110,000 19,500,000
Business Studies 19,100,000 19,100,000
Mass Communication 19,310,000 19,500,000
Fresh School Leavers
Private Secretarial Certificates 13,000,000 16,900,000
High School (SMU,SMK,STM) 10,200,000 10,241,000
Junior High School (SMP) 9,300,000 9,300,000
Note: The figure is based on the actual median salary paid.
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