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Higher education dilemma: Between degrees and labor market

Entering university is not an act of choice, but a negotiation with the system since the very beginning 

Irfan Idris and Kusumasari Ayuningtyas (The Jakarta Post)
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Sat, May 9, 2026 Published on May. 7, 2026 Published on 2026-05-07T19:07:22+07:00

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Ready to launch: A student of a private university poses in a graduation cap and gown a cap on Oct. 6, 2025, during a professional photo shoot at Banteng Square Park in Central Jakarta.

Ready to launch: A student of a private university poses in a graduation cap and gown a cap on Oct. 6, 2025, during a professional photo shoot at Banteng Square Park in Central Jakarta. (AFP/Yasuyoshi Chiba)

F

or many Indonesians, entering higher education is not merely an intellectual decision; it is a strategy for survival. In an increasingly competitive and often unequal labor market, higher education has long been positioned as a pathway to a more stable life. Families invest not only financially but also emotionally, placing their hopes on the belief that a university degree will open access to better employment opportunities.

In this sense, higher education carries an implicit promise, one that is rarely stated but widely believed: that it will improve an individual’s chances of surviving and succeeding in the workforce. Yet, this promise is becoming harder to fulfill. Many graduates, including high-achieving ones, struggle to secure decent jobs aligned with their fields of study.

Indonesia’s higher education system has expanded rapidly, with more than 4,000 institutions producing graduates in large numbers each year. However, this expansion has not been matched by the labor market’s capacity to absorb them. As of February 2025, more than 7 million Indonesians remain unemployed, including over 1 million university graduates. This is not merely an individual failure but a reflection of a structural disconnect between education and employment.

This disconnect is the primary driver behind the government’s recent initiatives to evaluate and potentially close "unproductive" study programs, those with low employability rates or minimal industry relevance. While aimed at streamlining the system, such moves underscore the growing tension between the intellectual mission of the university and the pragmatic demands of the economy.

This gap begins even before students enter university. In Indonesia’s highly competitive higher education system, particularly in public universities, admission often becomes the primary objective. As a result, many prospective students choose their fields of study based not on genuine interest or long-term relevance, but on their chances of being accepted. What appears to be a personal choice is, in fact, shaped by structural constraints.

For many Indonesians, access to private higher education remains financially out of reach. Economic limitations force families to make significant sacrifices, such as saving for years, cutting essential expenses, or taking on debt simply to ensure that their children can pursue higher education. In this context, public universities are not merely a matter of academic preference or prestige; they are often the only economically viable option.

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Choosing less competitive majors to secure admission is, therefore, a rational strategy. However, such decisions carry long-term consequences that are often overlooked. When fields of study lack strong relevance to labor market demands, graduates may struggle to translate their knowledge into viable employment opportunities.

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