How massive brain-drain is threatening Indonesia’s local economy
Indonesia is facing a growing brain drain as more young, educated citizens move abroad in search of better jobs, higher pay, and a more stable future.
The trend has sparked concern among economists and labour experts who warn that the loss of skilled professionals could hinder the country’s long-term development and weaken its economic competitiveness.
The situation is being fuelled by frustration over limited job opportunities at home.
Despite being one of Southeast Asia’s largest economies, Indonesia has struggled to absorb its growing skilled workforce, especially among youth.
National data shows that formal employment is shrinking while informal jobs dominate, leaving many graduates underemployed or unemployed altogether.
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Recent figures place youth unemployment at more than three times the national average, underlining the structural problems in the local labour market.
Skilled workers are not only leaving to earn more but also to gain international experience and escape the uncertainty surrounding job security in Indonesia.
Experts warn that if this trend continues unchecked, the country could face labour shortages in key sectors and fail to realise its ambition of becoming one of the world's leading economies by 2045.
Policy analysts argue that the country is at risk of a demographic crisis, where it grows old before becoming rich.
This story is written and edited by the Global South World team, you can contact us here.
