By: Suryoto Muhlis *)
The government under President Prabowo Subianto has a ambitious vision to make Indonesia a developed nation by 2045. One of the key prerequisites is the creation of millions of new, productive, and sustainable jobs. To achieve this, the Ministry of Manpower has formulated four key strategies that directly address the sources of unemployment and the potential for growth in the national job sector.
The first strategy is to optimize priority government programs that have a direct impact on employment. Minister of Manpower Yassierli stated that initiatives such as the Free Nutritious Meal Program (MBG) and the Red and White Cooperative are not only part of the social agenda but also concrete job creation engines. The MBG program, for example, utilizes thousands of state-owned enterprise (BUMN) SPGN kitchens, which can absorb tens of thousands of workers, from cooks to logistics. Meanwhile, the existence of 80,000 cooperatives throughout Indonesia holds the potential to create two million jobs, provided they are supported by trained human resources. To this end, the Ministry of Manpower has established 20 memorandums of understanding with relevant ministries, such as the Ministry of Agriculture and the Ministry of Investment, to ensure the sustainability of investment and the utilization of local labor within these programs.
The second strategy is to expand access to jobs abroad through internship programs designed as a pathway to skills development and welfare. The government views international experience as a crucial asset for the workforce, not only in enhancing competency but also in developing mature entrepreneurs. According to Yassierli, many overseas interns have successfully launched businesses after returning home, having accumulated capital and experience while working abroad. Currently, the Ministry of Manpower is collaborating with the Ministry of State-Owned Enterprises to expand these internship opportunities, making them a concrete solution to the limited job market in the country and a means of increasing the competitiveness of the Indonesian workforce in the global market.
The third strategy targets the development of existing industries through productivity enhancement and talent development tailored to industry needs. The government is no longer focusing solely on creating new industrial areas, but rather strengthening existing ones, such as in Serang, through systematic collaboration. The Ministry of Manpower is currently preparing 5,000 certified productivity experts from the ASEAN Productivity Organization to boost industrial sector performance by up to 30 percent. To institutionally support this initiative, the government is also awaiting the launch of the National Productivity Institute, which has a legal basis under Presidential Decree No. 1 of 2023. This institution will be a driving force for increasing national productivity, prioritizing medium-sized enterprises.
The fourth strategy is developing entrepreneurship as a foundation for community economic independence. The government believes the entrepreneurial sector has unlimited potential for job creation, especially in the era of economic transformation toward green and digital industries. Through the Vocational and Productivity Training Center (BPVP), the Ministry of Manpower is actively conducting skills training based on future needs, such as green jobs, Industry 4.0, and agroforestry. Last year, 140,000 participants were trained, but the government is targeting millions of new entrepreneurs in the next few years. To strengthen the cooperative base as a pillar of the people’s economy, a special curriculum has been prepared to prevent cooperative failure due to weak human resources. This training also provides a solution to the skills mismatch, namely the gap between workforce competencies and industry needs, which has been a major obstacle to job creation.
These four strategies will not work in isolation. The government ensures that their implementation is supported by a robust labor market information system, such as SIAPKerja, as well as affirmative action policies that support vulnerable groups, including people with disabilities. This system is designed to facilitate job seekers’ access to relevant training and vacancies, while simultaneously accelerating employment in both the formal and informal sectors.
Within a broader framework, the job creation strategy is also integrated with fiscal policies that support labor-intensive sectors and high-value-added investments. Finance Minister Sri Mulyani stated that the 2024 State Budget is designed to strengthen the link between education and the needs of the workforce. Statistics Indonesia (BPS) data as of February 2025 shows that 7.28 million people remain unemployed, including one million university graduates. This demonstrates that education alone is insufficient without targeted training and alignment with the business world.
Furthermore, the government is directing investment to strategic sectors such as the electric vehicle battery industry, data centers, and food security. The goal is not only to increase economic productivity but also to ensure that the economic transformation toward sustainable industries can go hand in hand with massive job creation.
With cross-sector synergy, a productivity-based approach, and a focus on community empowerment, these four strategies are believed to provide a strong foundation for creating millions of new jobs. The government views job creation not simply as a result of economic growth, but as a process that must be systematically designed, intervened, and monitored. If these strategies are implemented as planned, Indonesia will not only be able to reduce unemployment but also build a productive, independent society ready to compete in the global era.
*) Public Policy Analyst & Employment Development
