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Indonesia tackles graduate job crisis via national Internship program

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..Internships are not meant to replace workers with cheap labor,

Jakarta (ANTARA) - Amid a challenging job market and fierce competition, landing a first formal job has turned into an uphill battle for recent graduates.

Data from the Higher Education Database (PDDikti) in 2025 shows that Indonesian universities produce approximately 1.26 million graduates each year.

Yet beneath these figures lies a stark contradiction. Despite the steady influx of degree holders, Statistics Indonesia (BPS) recorded 1.3 million unemployed university graduates as of May 2026, accounting for 14.3 percent of the country’s total unemployment.

This gap highlights a sharp mismatch where the number of new graduates outpaces the supply of formal employment.

At the same time, employers are steadily raising qualification requirements, even for positions that previously did not required specialized experience.

One increasingly common recruitment requirement is prior work experience, particularly in the field applicants wish to enter.

This trend not only pressures young job seekers to gain professional experience before graduation but also underscores the need for the government, academia, and industry to work together to expand access to first formal jobs for millions of fresh graduates.

Internships have therefore become an important bridge between education and employment, with universities increasingly promoting them to help graduates meet industry demands.

In response to these needs, the administration of President Prabowo Subianto launched the National Internship Program in October 2025.

Stepping stone

Since its introduction, the National Internship Program has attracted strong interest from fresh graduates across various Indonesian universities.

Data from the Ministry of Manpower shows that 102,696 candidates were selected for and completed the program during its first rollout in 2025, exceeding the government's initial target of 100,000 participants.

With a target of 150,000 participants in its second year, the ministry hopes the program will serve as a stepping stone for graduates caught in a familiar paradox: they need work experience to secure a job but cannot gain that experience without first being hired.

The program provides university graduates with six months of practical work experience, hands-on mentorship, exposure to corporate culture, opportunities to develop technical and soft skills, and the chance to build professional portfolios and networks.

Through the experience, participants are not only expected to be better equipped to seek employment, but also to thrive, adapt, and grow in the workplace.

Ministry of Manpower data shows that approximately 30 percent of participants in the previous phase received job offers upon completing the program.

Another 34 percent had not received formal offers but were considered to have strong prospects of being hired, while around 36 percent remained without job offers.

Among participants who received job offers, the leading hiring sectors were finance, at 23.4 percent, followed by wholesale trade at 17.9 percent, manufacturing at 16.5 percent, and healthcare at 10.3 percent.

Securing formal employment

Despite these encouraging outcomes, internships are ultimately temporary. They are intended to provide learning opportunities for young workers and differ from formal employment in terms of responsibilities and compensation.

The challenging job market is compounded by a growing tendency among employers to offer internship positions instead of full-time jobs.

To address this issue, the government and business sector must establish clear boundaries, covering eligibility requirements that distinguish internships from regular employment, as well as workloads, training periods, and participants' rights.

Without adequate safeguards, companies could exploit internships as a loophole to replace full-time employees with cheap labor.

Recognizing this risk, the Ministry of Manpower has stressed that internship protections are now explicitly defined under the Employment Protection Law.

“Internships are not meant to replace workers with cheap labor,” Minister of Manpower Yassierli stressed.

Beyond establishing clear rules and protections, Indonesia also needs to create more jobs to ensure that young workers do not struggle to enter formal employment or remain unemployed during their most productive years.

In this regard, the Employment Protection Law also provides safeguards for job seekers.

Job seekers are set to gain access to more transparent labor market information, while stricter mandatory job vacancy disclosures are intended to curb scams, fraud, and fake listings.

Indonesia aspires to realize its Golden Indonesia Vision 2045 and become a developed nation by harnessing its demographic dividend. Achieving this goal requires encouraging young people to pursue ambitious goals while equipping them with stronger skills and clear pathways to build their careers.

Through quality initiatives such as the government's National Internship Program, alongside more inclusive access to employment, Indonesia's youth can receive the support they need to strengthen their competencies and competitiveness.

Cooperation among the government, educational institutions, and industry must continue to deepen to ensure that all young Indonesians have equal opportunities to thrive, become self-reliant, and ultimately contribute to the national economy.

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