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Highest unemployment rate for educated workforce underlying skill mismatch

The Central Statistics Agency (BPS) reported on Wednesday that the most educated section of the Indonesian workforce saw the highest unemployment rate, which underlined a skill mismatch that had long concerned local employers.

British Council commentary:
Skills gaps between what employers need and what universities produce are commonly cited in many countries, however this issue is perhaps more acute in Indonesia. For this reason, a recent trend in has been for conglomerates to establish their own private HEI. In parallel to this, the last couple of weeks have seen higher education combined with research and technology in the new government’s ministry structure, an effort to bring education and the needs of industry closer together.

Indonesian students studying abroad will have no problems finding employment upon their return, however will also be wary of the graduate employment market. Salaries are relatively low, and a key consideration of whether to study abroad is the ability to earn a high enough salary to recoup the cost of studying abroad. For this reason UK universities should be aware of employability prospects in Indonesia and be able to counsel prospective students on this when participating in student recruitment events.