Fri Jul 18 00:58:07 UTC 2025: **Summary:**

Young Indonesians are facing significant economic challenges, leading to pessimism about their futures compared to their peers in neighboring Southeast Asian countries. High youth unemployment rates, rigid labor laws, low wages, and a mismatch between skills and available jobs contribute to the problem. Many young graduates struggle to find stable, well-paying work, often ending up in the informal sector or remaining unemployed. The government is attempting to address the issue, but challenges remain, including regional disparities and a lack of effective vocational training.

**News Article:**

**Indonesian Youth Face Bleak Economic Prospects, Fueling Pessimism**

Medan, Indonesia – Surveys reveal a growing sense of pessimism among young Indonesians regarding their economic futures, lagging behind their peers in Southeast Asia. High youth unemployment rates, exacerbated by rigid labor laws and low wages, are leaving many recent graduates struggling to find stable, well-paying work.

“Many people choose to be outside the labour market rather than having to work for a salary below expectations,” said Adinova Fauri, an economist at the Centre for Strategic and International Studies (CSIS), Indonesia.

Andreas Hutapea, a law graduate currently working at his parents’ shop, exemplifies the struggles faced by many. Despite his degree, he has been unable to secure a stable career.

Indonesia’s youth unemployment rate sits at approximately 16%, significantly higher than neighboring countries like Thailand and Vietnam. Only 58% of young Indonesians express optimism about the government’s economic plans, compared to a 75% average across six regional countries.

Economists point to several factors contributing to the problem, including a mismatch between graduates’ skills and available jobs, regional disparities, and a lack of effective vocational training.

President Prabowo Subianto has acknowledged the need for job creation, initiating task forces and trade negotiations to address unemployment. However, the challenges remain significant, with a large portion of the workforce employed in the informal sector, lacking job security and social protection.

“The quality of jobs and informal employment are still major problems,” said Deniey Adi Purwanto, a lecturer at the Department of Economics at IPB University in Bogor.

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