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PublishedNov 6
Sources2 verified

Indonesian Graduates Struggle with Unemployment Despite Government Initiatives

AnalisaHub Editorial·November 6, 2025
Executive Summary
01

Executive Summary

Key insights and market outlook

Recent graduates in Indonesia face significant challenges in securing employment, with many forced into freelance or odd jobs despite participating in government training programs like Prakerja. The main obstacles include stringent job requirements such as experience and age limits, creating a mismatch between graduates' skills and employer expectations. This situation highlights the need for better alignment between education, training programs, and labor market needs.

Full Analysis
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Deep Dive Analysis

Indonesian Graduates Face Prolonged Unemployment Challenges

Government Programs Fall Short in Addressing Employment Needs

Recent graduates in Indonesia are experiencing extended periods of unemployment despite participating in government initiatives like the Prakerja program. The program, designed to enhance employability through training and certification, has not been sufficient to secure permanent employment for many participants. Graduates like Vian (25) have attended various training sessions and obtained certifications but continue to face significant challenges in the job market 1

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Stringent Job Requirements Create Barriers

The primary obstacles include stringent job requirements such as prior experience and age limits, which are often considered excessive for fresh graduates. This creates a paradox where employers demand experience for entry-level positions, yet graduates struggle to gain that experience. As a result, many are forced into freelance or temporary work, such as event staffing, which doesn't require specific qualifications or experience 2

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Labor Market Mismatch

The situation highlights a significant mismatch between education/training and labor market needs. While programs like Prakerja help enhance skills, they often fail to translate into tangible job opportunities. This disconnect between the supply of skilled graduates and employer demands continues to be a critical issue in Indonesia's labor market.

Economic and Social Implications

The prolonged unemployment among graduates not only affects individual livelihoods but also has broader economic implications. It represents a underutilization of human capital and can lead to skill degradation over time. Addressing this issue requires a multi-faceted approach involving education reform, industry collaboration, and targeted government policies.

Original Sources

Story Info

Published
2 months ago
Read Time
12 min
Sources
2 verified
Related Stocks
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Topics Covered

Labor Market ChallengesYouth UnemploymentGovernment Employment InitiativesEducation and Training Effectiveness

Key Events

1

Graduate Unemployment Persistence

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Government Training Program Evaluation

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Labor Market Mismatch Analysis

Timeline from 2 verified sources