Many university graduates continue to struggle to find jobs that match their competencies, a concern that has drawn serious attention from the Prabowo-Gibran administration. According to the latest report from Statistics Indonesia (BPS), as of February 2025, the number of unemployed people reached 7.28 million, with an open unemployment rate (TPT) of 4.76 percent.
This figure marks an increase of 83,000 people compared to the previous year. When viewed by education level, high school and university graduates rank the highest among the unemployed. This suggests that the young labor force remains underutilized in the available job market.
UGM economist, Dr. Wisnu Setiadi Nugroho, assessed that the government’s employment policies remain fragmented and short-term in nature.
“Many current government policies are patchwork and short-term, while long-term solutions like addressing vertical and horizontal mismatches are lacking. They are not being properly considered,” said Dr. Nugroho at the UGM Faculty of Economics and Business (FEB UGM), on Friday (Oct. 24).
Dr. Nugroho expressed concern about the growing number of students and university graduates who struggle to secure employment. Even when opportunities arise, jobs that match their qualifications remain scarce.
“On many campuses, we often hear complaints about how hard it is to find a job,” he said.
He also pointed out that the government has yet to place sufficient emphasis on long-term welfare policies for workers, particularly in areas such as retirement and old-age benefits, which ensure a decent standard of living.
“There is still no coherent policy that truly ensures workers can live securely in the future,” he added.
Dr. Nugroho further criticized the government’s Indonesia Endowment Fund for Education (LPDP) scholarship program, arguing that it lacks a supportive ecosystem for recipients after they complete their studies.
“It is not surprising that many scholarship recipients ultimately do not return to Indonesia. This issue has frequently been raised in discussions about why such scholarships are granted in the first place,” he explained.
He also noted that the meritocracy system in Indonesia’s labor market has failed to function as intended. As a result, many young people who have worked hard, pursued higher education, and developed their skills find themselves displaced by an unfair system.
“Positions and opportunities are sometimes filled by individuals who appear suddenly without a clear record of contribution. Generation Z is not only seeking stable jobs but also spaces for self-actualization. When their hard work does not yield fair rewards, disappointment and distrust toward the system become inevitable among young people,” Dr. Nugroho concluded.
Reporter: FEB UGM/Kurnia Ekaptiningrum
Author: Agung Nugroho
Post-editor: Rajendra Arya
Photographs: Dokodemo-Kerja and FEB UGM