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Indonesia has 44 million youths. It’s struggling to get them jobs | Enterprise and Financial system Information


Medan, Indonesia – After graduating from college with a legislation diploma two years in the past, Andreas Hutapea assumed he wouldn’t have a lot problem discovering a steady profession.

In actuality, Hutapea discovered himself dealing with one rejection after one other.

Hutapea first did not make it by Indonesia’s notoriously troublesome civil service exams, which result in a job for under about 3 % of candidates, and was equally unsuccessful in his bid to turn into a trainee prosecutor.

Earlier than legislation college, Hutapea had dreamed of becoming a member of the military, however he couldn’t meet the peak requirement.

Ultimately, together with his cash working out, Hutapea left the scholar lodging he was renting to maneuver again in together with his dad and mom, who run a easy store promoting oil, eggs, rice and different groceries.

Hutapea has been working at his dad and mom’ store, in a city on the outskirts of Medan, the capital of North Sumatra, ever since.

“I open the store for them within the morning, sit there all through the day serving prospects after which assist shut at night time,” Hutapea, who graduated from highschool in 2020, advised Al Jazeera.

“My dad and mom don’t pay me a wage for my work, however I can’t blame them for that. They’re giving me free meals and lodging.”

Hutapea is much from alone in his struggles to search out steady, well-paying work.

Indonesia has one of many highest charges of youth unemployment in Asia.

About 16 % of the greater than 44 million Indonesians aged 15-24 are out of labor, in keeping with authorities statistics – greater than double the youth unemployment price of neighbouring Thailand and Vietnam.

In a survey revealed by the ISEAS-Yusof Ishak Institute in Singapore in January, younger Indonesians expressed much more pessimistic attitudes in regards to the financial system and the federal government than their friends in Thailand, Malaysia, Singapore, the Philippines, and Vietnam.

Solely about 58 % of Indonesian youth mentioned they have been optimistic in regards to the authorities’s financial plans, in keeping with the survey, in contrast with a mean of 75 % throughout the six international locations.

protests
College college students march throughout an antigovernment protest referred to as ‘Indonesia Gelap’ (Darkish Indonesia), in opposition to the current funds effectivity insurance policies, close to the presidential palace in Jakarta, Indonesia, February 20, 2025 [Willy Kurniawan/Reuters]

In February, a few of this angst spilled onto the streets when college college students shaped the Indonesia Gelap, or Darkish Indonesia, motion to protest authorities plans to trim spending on public companies.

Economists level to a variety of things for the excessive price of jobless youth in Southeast Asia’s largest financial system, from inflexible labour legal guidelines that make hiring troublesome to poor wages that fail to draw succesful employees.

“Many individuals select to be outdoors the labour market somewhat than having to work for a wage under expectations,” Adinova Fauri, an economist on the Centre for Strategic and Worldwide Research (CSIS), Indonesia, in Jakarta, advised Al Jazeera.

“Good jobs are additionally not extensively accessible, so folks flip to the casual sector, which has decrease productiveness and safety.”

Indonesia, which is dwelling to greater than 280 million folks, has lengthy struggled with power youth unemployment.

Whereas nonetheless excessive in contrast with the remainder of the area, governments have, by the years, made some progress in getting extra younger folks into work – as lately as a decade in the past, one-quarter of younger Indonesians have been estimated to be with out a job.

Indonesian President Prabowo Subianto, a retired military basic who oversaw crackdowns on the 1998 pupil protests that precipitated the autumn of former President Soeharto, has acknowledged the necessity to create extra jobs, establishing process forces to sort out unemployment and negotiate on commerce with United States President Donald Trump.

On Wednesday, Prabowo hailed the start of “a brand new period of mutual profit” for Indonesia and the US, after Trump introduced a deal to decrease tariffs on Indonesian items from 32 to 19 %.

Prabowo
Indonesian President Prabowo Subianto waves to the media upon arrival from an abroad journey at Halim Perdanakusuma Airforce Base in Jakarta, Indonesia, on July 16, 2025 [Achmad Ibrahim/AP]

Although older adults are much less prone to being unemployed – Indonesia’s general jobless price is about 5 % – a lot of the work that’s accessible is unstable and poorly compensated.

About 56 % of the Indonesian workforce is employed within the casual sector, in keeping with 2024 figures from the Bureau of Statistics, leaving hundreds of thousands in susceptible situations and with out social safety protections.

“The decline within the open unemployment price doesn’t essentially replicate good efficiency within the labour market,” Deniey Adi Purwanto, a lecturer on the Division of Economics at IPB College in Bogor, advised Al Jazeera.

“The standard of jobs and casual employment are nonetheless main issues.”

However for younger folks, the mismatch between the variety of job seekers and jobs is especially extreme.

“Firstly, graduates of secondary and tertiary schooling don’t at all times match the wants of the labour market, and there’s additionally a excessive proportion of informality,” Purwanto mentioned.

“Indonesia has a really massive variety of younger folks, so the stress on the labour market is far increased.

“We even have quickly growing ranges of secondary and better schooling,” he added.

“Many younger faculty graduates keep away from casual or low-paid jobs, so that they select to attend for appropriate jobs, which results in unemployment.”

Purwanto mentioned there was additionally a scarcity of efficient vocational coaching and apprenticeship programmes in Indonesia, in contrast with neighbours resembling Vietnam or Malaysia.

“In Malaysia, for instance, there are extra industry-university linkage schemes and graduate employability programmes,” he mentioned.

jobs fair
Job seekers attend a job honest in Jakarta, Indonesia, on October 8, 2024 [Willy Kurniawan/Reuters]

Stark regional disparities in Indonesia, which is made up of some 17,000 islands, compound the issue, with younger folks in distant and rural areas discovering it particularly troublesome to entry good jobs.

That is significantly true in areas outdoors the island of Java, which is dwelling to the capital Jakarta and greater than half of Indonesia’s inhabitants.

Hutapea skilled this firsthand when he moved again together with his dad and mom, who reside about two hours out of Medan.

Regardless of having a legislation diploma, Hutapea, who’s determined to now not work in his dad and mom’ store, has discovered job alternatives skinny on the bottom.

Hutapea, who additionally has a facet gig organising sound techniques for weddings and events, lately attended an interview for a job replenishing banknotes in ATMs.

However although he thought the interview went nicely, he by no means heard again from the recruiter.

For Hutapea, who accomplished a few of his legislation college modules through the summer time holidays so he might graduate a yr early, it’s laborious to not really feel like his efforts haven’t been in useless.

“I didn’t need to be a burden to my dad and mom, who have been paying all my college charges,” Hutapea mentioned.

“However take a look at me now.”

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