This paper aims to explain two important issues still rarely studied in Indonesia. First, by estimating the working life expectancy, it is revealed that workers spent their lifetime mostly in the labor force, indicating high opportunity cost for workers to quit, e.g. to attend school. Second, to examine the flows of workers between employment, unemployment and nonparticipation in Indonesia and also investigates the relationship between the economic structural transformation and the structure of industrial employment. Studies of these flows are still rare due to limitation of comprehensive data on labor market in Indonesia. This study also finds there is a serious challenge for Indonesia to improve the level of productivity of its labor force and concludes that as the country has been taking reforms in many aspect of the nation, it could also be a good opportunity to reconstruct the development of its labor market.