The influx of unskilled workers into Kepri challenges the local employment balance, despite strong economic growth.
Governor Ansar Ahmad revealed that the rising unemployment rate in the Riau Islands (Kepri) is partly due to the growing influx of job seekers from other regions. While Kepri’s economic potential continues to attract investors, it also brings challenges in matching the skills of incoming workers with the needs of local industries.
Kepri’s Strategic Appeal
Kepri’s economic allure lies in its geography and national privileges. Situated along international shipping lanes, the province benefits from Free Trade Zone (FTZ) status in Batam, Bintan, and Karimun—making it one of Indonesia’s most attractive investment hubs. Governor Ansar, speaking in Tanjungpinang on Saturday (October 11, 2025), emphasized that these advantages have turned Kepri into a magnet not only for investors but also for thousands of job seekers from across Indonesia.
The Downside of High Influx
However, the Governor noted that the large number of incoming workers has not always produced positive outcomes. Many new arrivals lack the technical expertise and vocational skills required by the province’s industrial sectors. “Many come with high hopes of employment, but without the right competencies. This significantly affects our unemployment rate,” Ansar said during the Musyawarah Provinsi VI of Inkindo Kepri held at Aston Hotel, Tanjungpinang.
Unemployment Trends in Kepri
Data from the Kepri Manpower and Transmigration Office (Disnakertrans) show that Kepri’s Open Unemployment Rate (TPT) remains the second highest in Indonesia at 6.6%, after Papua. Despite this, Head of Disnakertrans Diky Wijaya clarified that the demand for workers in Kepri remains high. The province houses over 26,000 domestic and foreign investment companies operating across 23 industrial zones, ranging from manufacturing to heavy industry.
Economic Growth Versus Workforce Quality
Diky highlighted that Kepri’s economy continues to grow steadily, with poverty at around 4% and inflation below 3%. “The need for labor is actually strong compared to the unemployment figure,” he said. In the past three years, Kepri’s TPT dropped from 84,230 unemployed in February 2023 to 75,210 in February 2025—a 6.8% improvement. All seven regencies and cities in Kepri, including Batam, Bintan, and Tanjungpinang, recorded declining unemployment figures.
Need for Balanced Policy
Governor Ansar proposed clearer regulations on incoming job seekers to ensure that only those equipped with sufficient skills enter the labor market. “Our goal is not to restrict, but to ensure those who come are ready to compete in the workforce,” he stated. He also called for stronger collaboration among government, industry, and educational institutions to enhance vocational training and certification programs.
Building a Skilled Kepri Workforce
By emphasizing skills development, Ansar aims to position Kepri not only as an investment hub but as a center for professional and skilled labor. The province’s sustainable economic growth depends on aligning its workforce capabilities with the demands of its expanding industries. The challenge now lies in transforming Kepri’s attraction from a magnet for job seekers into a launchpad for Indonesia’s most competitive talent pool.
Kepri’s struggle between economic expansion and workforce readiness reflects a broader issue faced by Indonesia’s rapidly developing regions. For neighboring economies such as Singapore, Kepri’s ability to cultivate a skilled labor market will be key in sustaining cross-border industrial growth and regional competitiveness in the years ahead.
Sources: ANTARA News Kepri (2025) , Batamnews (2025)
Keywords: Riau Islands, Governor Ansar Ahmad, Unemployment, Job Seekers, Batam Free Trade Zone
