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Indonesia aims to create up to 3.5 million jobs in 2027

The employment target is aligned with the Indonesian government's goals of achieving economic growth of 5.8–6.5%, increasing the rate of formal employment to 40.81%, and lowering the unemployment rate to 4.3–4.87% in 2027.

An Indonesian farmer is sun-drying paddy. (Photo: VNA)
An Indonesian farmer is sun-drying paddy. (Photo: VNA)

Jakarta (VNA) – The Indonesian government looks to create 2.57 million to 3.49 million new jobs under the 2027 Government Work Plan as part of efforts to promote high-quality economic growth and raise people's incomes.

Speaking at a plenary session of the Indonesian House of Representatives on July 2, Deputy Chairman of the House of Representatives Budget Committee (Banggar) Wihadi Wiyanto said the employment target is aligned with the government's goals of achieving economic growth of 5.8–6.5%, increasing the rate of formal employment to 40.81%, and lowering the unemployment rate to 4.3–4.87% in 2027.

Wihadi said the fiscal policy outlined in the proposed 2027 state budget will prioritise industrialisation, and developing downstream industries to add value to domestic natural resources, attract investment, and create more jobs.

The government also identified human capital development as a key pillar of its growth strategy by improving the quality of education and vocational training to better meet labour market and industrial demand.

These targets will be implemented through eight national priority programme groups tailored to the characteristics, potential and development needs of each locality, with the aim of strengthening coordination effectiveness among ministries, sectors and local administrations.

Job creation has remained a top priority for the Indonesian government in recent years as the country's labour force continues to grow rapidly. According to Statistics Indonesia (BPS), the labour force exceeded 153 million people in early 2026 while the unemployment rate has continued to decline, supported by the economic recovery and policies for promoting investment, industrial and infrastructure development./.

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