Indonesia is grappling with high youth unemployment and a growing number of jobless educated workers. The youth unemployment rate stands around 17%, among the highest in Asia, while unemployment for older adults is just 1–3%, At the same time, university participation has expanded – about 45% of college-age Indonesians are enrolled in tertiary education – yet many graduates struggle to find suitable jobs. Over 1.01 million university degree holders were unemployed as of early 2025, reflecting a worrying “educated unemployment” phenomenon. Critics note that government efforts to address these issues have been limited and short-term, and simply improving human capital will not reduce joblessness if labor demand remains weak. In response to these challenges, the government has introduced Program Magang Nasional, a national internship initiative intended to boost youth employment.
