Indonesia Faces Youth Job Crisis Amidst Stalled Economic Change
Jakarta, Indonesia – October 8, 2025 – Indonesia is grappling wiht a persistent challenge in generating sufficient employment opportunities for โits burgeoning youthโฃ population, a situation exacerbated by a โขdecades-long stagnation in structural economicโฃ transformation. Recent analysis โฃindicates the nation has lagged โคbehind โคregional peers in shifting towards higher-productivity sectors, hindering its abilityโฃ to absorb aโค growing workforce and capitalize on its demographicโฃ dividend.
The issue poses a significant threat to โฃIndonesia’s economic future, potentially โfueling socialโฃ unrest and limiting the โcountry’s potential forโฃ sustained growth. With a medianโฃ age of under 30, โIndonesia boasts aโ large youth demographic, but without significant jobโค creation, especially inโฃ higher-value industries, a substantial portion ofโฃ this population risks underemployment or prolonged unemployment.โค This lackโ of economic โmobility could stifle innovation and hinder โคIndonesia’s progress towards becoming a high-income nation.
Aโ recent report highlightedโค that Indonesia’s manufacturing employmentโ share has remained largely static over the past โฃthree decades, unlike many other developing economies that have experienced significant growthโ in โขthis sector. This absence of productivity-enhancing structural transformation is a key factor contributing to the โlimitedโฃ availability of quality jobs for young Indonesians. โThe situation demands urgent policy interventionsโ focusedโข onโ fostering industrial diversification, improving skills advancement, and creating a more conducive habitat forโค investment and entrepreneurship.
The Jakarta โฃPost’s “Prospects” newsletter offers ongoing coverage ofโ Indonesia’s evolving business landscape, including in-depth analysis โof these critical economic challenges. subscribers receive exclusive interviewsโ and insights into the region’s most โขpressing businessโ issues.
