Indonesia Faces High Youth Unemployment Amid Economic Pessimism

Indonesia Faces High Youth Unemployment Amid Economic Pessimism
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Indonesia, home to over 44 million youths aged 15-24, is grappling with one of Asia’s highest youth unemployment rates, currently at about 16%, Al Jazeera reported based on government statistics. This rate is more than double that of neighboring countries such as Thailand and Vietnam. Many young Indonesians, including recent graduates, face significant challenges securing stable, well-paying jobs despite their qualifications.

Hutapea, a law graduate from North Sumatra, has struggled to find employment after failing Indonesia’s competitive civil service exams and other job applications. Like many others, he has resorted to working in the informal sector, helping at his parents’ grocery shop without pay. This informal employment, which accounts for 56% of Indonesia’s workforce, often lacks social protections and decent wages.

A survey by Singapore’s ISEAS-Yusof Ishak Institute reveals that Indonesian youths are more pessimistic about their economic futures than peers in neighboring countries, with only 58% optimistic about government economic plans compared to a regional average of 75%. This discontent has fueled protests such as the “Indonesia Gelap” movement against government budget cuts.

Economists attribute the high youth unemployment to rigid labor laws, poor wage offerings, and a mismatch between education and labor market needs. Vocational training and apprenticeship programs are also less developed compared to Malaysia and Vietnam.

President Prabowo Subianto has acknowledged the issue, initiating task forces to create jobs and improve trade relations. However, the challenge remains significant, especially in rural and remote areas outside Java, where job opportunities are scarce.