The significant layoffs in the startup world over the past two years have led to a decline in employee salaries, setting a new standard for startup wages in Indonesia. The salary decrease affects various job fields in startups at both entry and mid-level positions.
According to the latest report titled "Startup Talent Trends Report 2024" by Monks Hill Ventures and Glints, the average salary of startup employees in Indonesia has decreased by approximately 3 percent compared to the previous year. The most significant decline of 5 percent was experienced by entry-level employees with 1-3 years of experience.
Mid-level employees with 3-5 years of experience in Indonesian startups saw a 4 percent decrease in salary compared to the previous year. Meanwhile, the salaries of senior-level employees with 5-10 years of experience remained stagnant.
The report attributes the decrease in startup employee salaries in Indonesia to an oversupply of talent compared to demand. The substantial layoffs in the startup world have resulted in an abundance of job seekers.
On the other hand, startup companies continue their efforts towards efficiency. Throughout 2023, approximately 41 percent of companies surveyed from Singapore, Indonesia, and Vietnam stated that they were still trimming their budgets for hiring.
However, the majority of startup companies indicated that they are still recruiting employees, especially in the fields of product and engineering.
In Indonesia, engineering roles receive the highest salaries among other startup employees in the technology sector, ranging from US$2,300 (Rp 36.11 million) to US$5,000 (Rp 78.5 million).
For comparison, software developers with 1-3 years of experience in startups now receive salaries ranging from US$600 (Rp 9.4 million) to US$800 (Rp 12.56 million).
Although engineering roles receive higher average salaries, the highest-paying job sector in Indonesian startups actually comes from non-technical fields. Marketing executives are the highest-paid employees in the Indonesian startup world, earning between US$2,400 (Rp 37.68 million) and US$5,800 (Rp 91 million).
Junior-level employees in the same field, such as product marketing with 1-3 years of experience, earn between US$400 (Rp 6.28 million) and US$700 (Rp 11 million).