Expatriate workers are leaving Indonesia at a rapid pace due to the slump in commodity prices that has forced resource companies to slash jobs at a time when the government has also introduced tighter regulations on expatriates in Southeast Asia’s biggest economy.
There is a big slump in the number of temporary residential permits issued to foreigners, including renewals resulting in the plummeting of rents in up market homes in Jakarta, also the enrolment at international schools has seen sharp fall.
The outflow is likely to have spiraling effects on the local population; many have lost their jobs as housemaids, drivers, gardeners and bodyguards at expat homes. Three international schools in the city have shut over the past 2-3 years due to the mass layoffs and a drastic cut in expat spending.
Low resource prices and a slowdown in demand from China, one of Indonesia’s top export markets, have reduced the incentive for exploration or production in the oil and gas and mining sectors, forcing companies to hack back on staff costs.