Indonesia’s Young Generation and the Skills Mismatch Crisis: Time to Take Real Action

Introduction: The Harsh Reality Facing Young Graduates

Icha Nur Septiani, an electrical engineering graduate from Bandung State Polytechnic, sent out over 2,000 job applications before finally landing a customer service role at a ride-hailing company. For eight months, she faced rejection after rejection. Icha’s story reflects a bitter truth for millions of Gen Z Indonesians: a higher education degree no longer guarantees relevant employment.

Alarming Data: Gen Z Unemployment in Indonesia

9.9 million Gen Z Indonesians are unemployed.
The youth unemployment rate (15–24 years) stands at 17%, significantly higher than the national average of 4.9%.
Around 60% of Indonesian workers are in the informal sector, with no social protection.

The Root Cause: Skills Mismatch

This is a case of vertical mismatch: graduates possess qualifications that don’t align with labor market demands. Despite high numbers of job seekers, employers still struggle to find suitable candidates — 46% of companies in Indonesia report this issue.

Social Impact: The Rise of #KaburAjaDulu

Disillusionment has sparked the viral hashtag #KaburAjaDulu ("Just Leave First"), where young people exchange tips on job and scholarship opportunities abroad. It highlights a growing trend: young Indonesians seeking better futures overseas due to dissatisfaction with domestic job prospects.

The Solution: Vocational Education and Skills Training

Vocational education has proven to be effective in bridging the skills gap. Studies show that vocational graduates are more likely to find jobs that match their training — providing a pathway toward better employment outcomes.

Strategic Actions: Government–Industry–Education Collaboration

Government: Increase investment in vocational education and job training programs.
Industry: Actively help design curricula that reflect current market needs.
Educational Institutions: Update study programs to align with technological and industrial developments.

Conclusion: Time to Act

The skills mismatch crisis demands real and immediate action. With strong collaboration between the government, private sector, and educational institutions, Indonesia can build a more inclusive and adaptive employment ecosystem for its young generation — and unlock the nation’s true demographic potential.