(Jakarta, 8th) Indonesia is experiencing an increasing brain drain phenomenon, with more and more well-educated young people feeling disappointed with domestic economic conditions and work opportunities, opting to seek better opportunities abroad.
The Jakarta Post reports that experts point out that the lack of employment opportunities, waves of layoffs, and the prevalence of corruption and extortion undermining the investment environment are all driving this brain drain.
Fikri (25), a political science graduate, is working in a poultry factory in Australia on a working holiday visa. He said he originally planned to study abroad, but decided to work overseas due to not securing a scholarship.
Fikri mentioned that he struggled to find a job domestically as no company would hire him. "However, finding a job in Australia is easy because certain industries, such as manufacturing, face labor shortages."
Many young people like Fikri work in blue-collar jobs in Australia on working holiday visas. Data from the Australian Department of Home Affairs shows that Indonesia is the country with the highest number of approved visas in the Australian working holiday visa program, with the number of visas increasing from 2,984 in 2022-2023 to 4,285 in 2023-2024.
Wiona, a graduate from the Bali Professional Tourism Institute, recently went to the U.S. for an internship at a hotel. She has previously worked temporarily at three five-star hotels in Bali. She hopes to leverage her skills in the tourism industry, and friends who have worked abroad have told her that incomes and skill development opportunities are better in the U.S.
Wiona said, "Whether I continue working in the U.S. or in other countries, I will cherish these opportunities to continuously enrich my overseas work experience."
Experts warn that if this large-scale exodus of highly educated and skilled talent is not properly addressed, Indonesia may lose its best workforce, slow down innovation processes, hinder technological development, and thus weaken national competitiveness.
Faizal, the Director-General of the Indonesian think-tank Center for Economic Reform (CORE), warns that long-term brain drain could lead to the loss of Indonesia's finest talents, who could have helped Indonesia attract investment and promote technological development, contributing to domestic job creation.
A recent report by the Center for Economic Reform indicates that Indonesia lags behind other Southeast Asian countries in providing youth employment opportunities for ages 15 to 24. The report states that stagnant youth employment reflects Indonesia's failure to fully harness the demographic dividend.
The International Labor Organization estimated last year that Indonesia's youth unemployment rate was 13.1%, higher than India, Malaysia, Vietnam, the Philippines, and Thailand; the Indonesian Statistics Bureau's semi-annual survey released earlier this month shows a youth unemployment rate of 16.16%, more than three times the overall unemployment rate of 4.76%.
Labor expert Dazudin suggests the government seize the opportunity to provide ample innovative infrastructure and favorable conditions to attract and retain skilled talent. "If the government can encourage Indonesians overseas to return in the future, it would be hugely beneficial as they possess rich overseas experience and knowledge."
The Jakarta Post reports that experts point out that the lack of employment opportunities, waves of layoffs, and the prevalence of corruption and extortion undermining the investment environment are all driving this brain drain.
Fikri (25), a political science graduate, is working in a poultry factory in Australia on a working holiday visa. He said he originally planned to study abroad, but decided to work overseas due to not securing a scholarship.
Fikri mentioned that he struggled to find a job domestically as no company would hire him. "However, finding a job in Australia is easy because certain industries, such as manufacturing, face labor shortages."
Many young people like Fikri work in blue-collar jobs in Australia on working holiday visas. Data from the Australian Department of Home Affairs shows that Indonesia is the country with the highest number of approved visas in the Australian working holiday visa program, with the number of visas increasing from 2,984 in 2022-2023 to 4,285 in 2023-2024.
Wiona, a graduate from the Bali Professional Tourism Institute, recently went to the U.S. for an internship at a hotel. She has previously worked temporarily at three five-star hotels in Bali. She hopes to leverage her skills in the tourism industry, and friends who have worked abroad have told her that incomes and skill development opportunities are better in the U.S.
Wiona said, "Whether I continue working in the U.S. or in other countries, I will cherish these opportunities to continuously enrich my overseas work experience."
Experts warn that if this large-scale exodus of highly educated and skilled talent is not properly addressed, Indonesia may lose its best workforce, slow down innovation processes, hinder technological development, and thus weaken national competitiveness.
Faizal, the Director-General of the Indonesian think-tank Center for Economic Reform (CORE), warns that long-term brain drain could lead to the loss of Indonesia's finest talents, who could have helped Indonesia attract investment and promote technological development, contributing to domestic job creation.
A recent report by the Center for Economic Reform indicates that Indonesia lags behind other Southeast Asian countries in providing youth employment opportunities for ages 15 to 24. The report states that stagnant youth employment reflects Indonesia's failure to fully harness the demographic dividend.
The International Labor Organization estimated last year that Indonesia's youth unemployment rate was 13.1%, higher than India, Malaysia, Vietnam, the Philippines, and Thailand; the Indonesian Statistics Bureau's semi-annual survey released earlier this month shows a youth unemployment rate of 16.16%, more than three times the overall unemployment rate of 4.76%.
Labor expert Dazudin suggests the government seize the opportunity to provide ample innovative infrastructure and favorable conditions to attract and retain skilled talent. "If the government can encourage Indonesians overseas to return in the future, it would be hugely beneficial as they possess rich overseas experience and knowledge."