A view of Jakarta, Indonesia, June 2024. Photo by AFP
Indonesia is now in the “demographic dividend” period, but its younger generation is grappling with employment challenges.
Nearly 10 million Gen Z-ers were classified as not in education, employment or training as of 2023, according to data from Statistics Indonesia.
This figure, predominantly made up of women, underscores ongoing issues with youth unemployment and the skills gap.
Beyond an increasingly competitive job market, the younger generation must now also navigate the challenges posed by the rapid rise of artificial intelligence (AI). According to a World Economic Forum report, around 23% of jobs will shift as a result of wider AI implementation in the workplace.
With an annual growth rate of about 1.11%, the country’s population is estimated at 284.4 million in 2025.
During the “demographic dividend” period from 2020 to 2030, Generation Z (those born between 1997 and 2012) has emerged as the largest population group, accounting for nearly 28% of the total, or around 75 million people.
However, the period not only offers opportunities but also poses a problem if not utilized well to boost economic growth and welfare in the country.
In early 2025, the #KaburAjaDulu hashtag, which translates to “Just Escape for Now”, went viral among young Indonesians on X (formerly Twitter), being a collective call to leave the country in search of better opportunities abroad.
To respond to the current challenges, the Indonesian government has initiated a program for the younger generation, namely the National Internship program, inaugurated in 2025. The Ministry of Manpower has reported that the program achieved its target of 100,000 participants in 2025 and is projected to continue in 2026 with the same number of participants, particularly fresh graduates.
Media Wahyudi Askar, director of Public Policy at the Centre of Economic and Law Studies, assessed that the National Internship program can accelerate the transition towards better access to formal employment.
