Indonesia Faces Significant Economic Challenges Through 2028

Unemployment and Economic Slowdown Top Concerns

Indonesia is bracing for significant economic challenges in the next two years, with unemployment among young people emerging as a critical issue. According to the World Economic Forum's (WEF) latest Global Risks Report 2026, the country is among 27 nations where lack of economic opportunities is considered a major threat to economic stability. The report highlights that Indonesia ranks first in terms of this particular risk for the period 2026-2028.

Key Findings from WEF Report

The WEF's assessment is based on the Executive Opinion Survey 2025, which captures the perceptions of business leaders both within Indonesia and internationally. The survey reveals that the lack of economic opportunities can lead to extremism, mistrust in institutions, and increased misinformation. The report emphasizes that Indonesia's demographic dividend remains underutilized due to the insufficient creation of quality employment opportunities.

Implications for Indonesia's Economy

The findings suggest that Indonesia needs to focus on creating more quality jobs to harness its demographic potential effectively. The government and private sector must work together to address this challenge by implementing policies that stimulate economic growth and job creation. Failure to do so could lead to increased social and economic instability.