Indonesia is embarking on an ambitious employment strategy aimed at creating 19 million jobs during the Prabowo-Gibran administration. At the heart of this effort lies a dual approach: accelerating investment through regulatory reform and expanding labor-intensive sectors like manufacturing, agriculture, and tourism. With economic growth as the foundation, the government is aligning policy, programs, and partnerships to unlock inclusive and sustainable employment opportunities.
Key Facts & Background
- The government has set a target of creating 19 million new jobs during President Prabowo Subianto and Vice President Gibran Rakabuming Raka’s term.
- Achieving this goal requires sustained economic growth of up to 8%, driven by investment and domestic consumption.
- The government is prioritizing regulatory reform to improve the investment climate, including:
- Issuance of Government Regulation No. 28 of 2025 to streamline licensing procedures.
- Implementation of a Risk-Based Business Licensing System for greater efficiency and legal certainty.
- Formation of a debottlenecking task force to simplify policies and enforce service-level agreements (SLAs).
- Labor-intensive sectors identified as key job creators include:
- Manufacturing
- Tourism (with linkages to transport, hospitality, culinary, and services)
- Agriculture (supported by food security programs, fertilizer subsidies, and mechanization credit schemes)
- Flagship programs supporting job creation:
- Kopdes Merah Putih (village-based cooperative initiative)
- Program Makan Bergizi Gratis (Free Nutritious Meals Program), with each SPPG unit estimated to create 34 direct jobs.
- To ease the school-to-work transition, the government launched a six-month certified internship program targeting recent university graduates.
- National Internship Program 2026 quota: 100,000 participants (20,000 in Batch I, 80,000 in Batch II).
- Phase II of the 2025 internship program is scheduled for November.
Strategic Insights
Indonesia’s employment strategy reflects a comprehensive and forward-looking response to one of its most pressing development challenges: job creation at scale. With a growing labor force and shifting global dynamics, the government’s focus on investment-led growth and regulatory streamlining is both timely and necessary. By targeting 8% economic growth, policymakers acknowledge that robust expansion is a prerequisite for absorbing millions of new entrants into the labor market.
The deregulatory push—anchored by Government Regulation No. 28/2025 and the Risk-Based Licensing System—signals a structural shift toward a more agile and investor-friendly business environment. These reforms aim to reduce bureaucratic friction, enhance legal certainty, and accelerate project implementation. If effectively executed, they could unlock significant private sector investment, particularly in sectors with high employment elasticity.
Equally important is the emphasis on labor-intensive industries. Manufacturing, agriculture, and tourism not only offer broad employment potential but also support regional development and economic diversification. By investing in rural cooperatives, food security, and tourism ecosystems, the government is fostering inclusive growth that reaches beyond urban centers. These sectors also offer resilience against automation and global shocks, making them strategic pillars for long-term employment stability.
The integration of social programs like MBG and Kopdes Merah Putih into the employment agenda reflects a nuanced understanding of economic multipliers. These initiatives not only address nutritional and community needs but also stimulate local supply chains and microenterprise development. Similarly, the national internship program bridges the education-to-employment gap, equipping graduates with practical experience and improving their labor market readiness.
However, the success of this strategy hinges on sustained policy coherence, institutional coordination, and private sector engagement. Monitoring mechanisms, transparent implementation, and adaptive feedback loops will be essential to ensure that job creation targets translate into real, quality employment. Moreover, aligning workforce development with emerging sectors—such as green energy, digital services, and creative industries—will future-proof Indonesia’s labor market.