SHUTTERSTOCK/LUNA VANDOORNE

Youth Unemployment In Indonesia Highlighted By Foreign Media, What's The Government's Solution?

Thursday, 24 Jul 2025

International media outlet Al Jazeera highlighted the issue of youth unemployment in Indonesia. This focus was included in a report published on July 18, 2025. The report featured the story of Andreas Hutapea, a graduate from North Sumatra who has been unemployed since graduating two years ago. Andreas struggled to find work and ultimately returned home due to financial difficulties. Now, he helps his parents sell at the family shop. Al Jazeera reported that Indonesia has one of the highest youth unemployment rates in Asia. As reported on Monday (July 21, 2025), approximately 16 percent of Indonesia's 44 million population aged 15–24 are unemployed. This figure is twice as high as Vietnam and Thailand. 

Meanwhile, an ISEAS-Yusof Ishak Institute survey in Singapore published in January 2025 noted that young Indonesians are more pessimistic about the economy and the government. Only 58 percent of respondents in Indonesia have confidence in the government's economic plans. In five neighboring countries, youth optimism towards the government averages 75 percent. Several economists have identified several factors contributing to youth unemployment in Indonesia. These include rigid employment regulations and low wages. "Many people choose to remain outside the labor market rather than work for wages below expectations," said CSIS Indonesia economist Adinova Fauri. "Decent jobs are also not widely available, so people turn to the informal sector, which has lower productivity and protections," she continued. 


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