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View all search resultsGovt’s 3 million new jobs target next year deemed ‘ambitious’
Businesses urge the government to address structural issues that contribute to the high-cost economy, simplify business licensing and adopt more supportive policies for labor-intensive industries.
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Jobseekers wait in line on June 8 during the opening of the 2026 Bogor Job Fair at Plaza Jambu Dua in Bogor, West Java. (Antara/Arif Firmansyah)
I
ndonesia aims to create more than 3 million new jobs in 2027 amid a sluggish labor market. Businesses and economists have called the goal ambitious, stressing that achieving it would require reducing the cost of doing business to spur investment and incentivize labor-intensive industries to improve their competitiveness.
In a meeting with the House Budget Committee (Banggar) on Aug. 27, Finance Minister Purbaya Yudhi Sadewa revealed a target to create between 2.57 million and 3.49 million jobs next year.
The government has also included the proportion of formal jobs as a development indicator in the State Budget draft for 2027, aiming to increase the share from 37.95 percent this year to 40.81 percent.
Purbaya stated that economic growth is targeted at 6 percent, which can be achieved through fiscal and monetary policy, as well as by encouraging state asset fund Danantara to pursue strategic investments.
On Wednesday, Manpower Minister Yassierli also said his ministry would support the jobs target through internship programs and vocational education.
The Indonesian Employers Association (Apindo) called the job creation goal “quite ambitious” but said it was attainable if economic growth could further spur business expansion and investment in the real sector.
Apindo chairwoman Shinta Kamdani told The Jakarta Post on Aug. 31 that the real challenge was to sustainably create decent jobs, given that around 2 million to 4 million people join the workforce each year, while Indonesia’s employment structure is still dominated by the informal sector.
