Indonesian graduate unemployment and labor market mismatch

A report by the Institute for Economic and Social Research at the University of Indonesia (LPEM FEB UI) has identified five academic disciplines that account for approximately 40% of unemployed bachelor's degree holders in Indonesia. Based on August 2025 National Labor Force Survey data, the fields with the highest unemployment rates are Management (10.3%), Law (9.0%), Economics (8.7%), Education (7.1%), and Accounting (5.1%).

The report highlights a labor market mismatch, noting that roughly 8 million graduates are working in roles that require lower educational qualifications than their degrees. High unemployment in business-related fields is attributed to intense competition for entry-level positions.

In response to these workforce development needs, the Financial Services Authority (OJK) has introduced internship opportunities through the Ministry of Manpower's MagangHub 2026 Batch 2 program. These positions, available in regional offices such as Bali, are designed to help fresh graduates gain professional experience in sectors including content creation, consumer services, and financial industry supervision.