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Job Crunch in Indonesia: Businesses Urge Government to Ease Access to Overseas Work

Credit: Jawa Pos
Credit: Jawa Pos
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Employers push for streamlined rules to expand opportunities for Indonesian migrant workers abroad.

Indonesia’s business leaders are urging the government to simplify access for citizens seeking jobs abroad, positioning overseas work as a solution to the nation’s growing employment gap.

Call for Easier Access to Overseas Jobs

The Chief Executive Officer of the Indonesia Business Council (IBC), Sofyan Djalil, said overseas opportunities could help absorb Indonesia’s swelling workforce. However, he noted that Indonesian participation abroad remains low compared to neighboring countries.

Citing IBC data, Sofyan highlighted that Japan plans to recruit 820,000 migrant workers by 2029, yet Indonesia is projected to supply only 12 percent, while Vietnam is projected to contribute nearly 59 percent.

Barriers and Needed Reforms

Sofyan stressed that regulatory hurdles remain a major obstacle. “Many rules do not match their original purpose. They must be fit for purpose,” he said at the Kick-Off Indonesia Economic Summit 2026 in Jakarta on Aug 26.

He called for streamlined processes and the development of a supportive migrant worker ecosystem, covering pre-departure, placement, and post-placement stages.

Building Stronger Ecosyste

Through its IBC In Action initiative, the council is working with the Coordinating Ministry for Community Empowerment, and the Ministry of Migrant Worker Protection to align private sector best practices with public policy.

“The ecosystem is broad, and collaboration with government is crucial to accelerate the growth of Indonesia’s migrant workforce,” Sofyan added.

Preparing for Demographic Bonus

IBC Supervisory Board Chairman Arsjad Rasjid emphasized the urgency of preparing skilled workforce to seize the country’s demographic bonus.

“With so many young Indonesians entering the workforce, mismatches in skills could worsen unemployment unless overseas work is made accessible,” he said.

Arsjad underscored that equipping Indonesians with globally relevant skills would enable them to compete abroad and generate much-needed income for families at home.

Turning Pressure into Opportunity

By enabling broader access to overseas employment, Indonesia could ease domestic job pressures while also strengthening its global presence through skilled migrant workers. With proper policy alignment, businesses believe the country can transform its demographic surge into long-term economic growth.

For both Indonesia’s youth and its economy, overseas employment pathways could serve as a vital safety valve amid limited domestic opportunities. As businesses press for reforms, the government’s response will determine whether Indonesia can turn its demographic challenges into a strategic advantage.

Sources: Detikfinance (2025) , Ambisius Lab (2025)

Keywords: Indonesia Jobs, Migrant Workers, Overseas Employment, Sofyan Djalil, Arsjad Rasjid, Job Market Indonesia

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