Indonesia to Launch National Internship Program in Q4 2025 to Curb Graduate Unemployment
Jakarta, The Gulf Observer: The Indonesian government will roll out a national internship program in the fourth quarter of 2025 to tackle graduate unemployment and strengthen linkages between higher education institutions and industry, a senior minister announced Tuesday.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the initiative, designated as a national priority, will be implemented through partnerships between universities and both private companies and state-owned enterprises.
“All companies can participate, whether privately owned or state-run. There will be link-and-match cooperation between universities and companies,” Hartarto told reporters after a Cabinet meeting chaired by President Prabowo Subianto at Merdeka Palace in Jakarta.
The program, being prepared in coordination with the Ministry of Higher Education, Science and Technology, will initially recruit 20,000 fresh graduates. Each participant will receive a monthly stipend equivalent to the provincial minimum wage — currently Rp3.3 million ($200) — for six months. Hartarto noted that the scheme could absorb up to 10% of new graduates into the workforce.
The internship initiative forms part of eight economic stimulus measures the government intends to accelerate in 2025 to boost growth in Southeast Asia’s largest economy.
Indonesian Chamber of Commerce and Industry (Kadin) Chairman Anindya Bakrie welcomed the program, stressing its benefits for both businesses and the broader economy. “This initiative can significantly strengthen talent pipelines for businesses while also boosting national economic growth,” he said.
According to Manpower Minister Yassierli, 1.01 million graduates remain unemployed this year. Statistics Indonesia (BPS) reported the total number of unemployed stood at 7.28 million as of February 2025 — an increase of 1.11 percent, or around 83,450 people, compared to the previous year. University graduates accounted for 4.76 percent of the total workforce.
The unemployed also include 177,390 diploma holders, 2.42 million primary and junior high school graduates, 2.04 million senior high school graduates, and 1.63 million vocational school graduates, BPS data showed.
