The Indonesian government will launch a national internship program in the fourth quarter of 2025 to address graduate unemployment and bridge the gap between universities and industry, a senior minister said Tuesday.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the program, a national priority, will involve 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 led by President Prabowo Subianto at Merdeka Palace in Jakarta.
The initiative is being prepared in coordination with the Ministry of Higher Education, Science and Technology.
In its initial phase, the program will recruit 20,000 fresh graduates. Each participant will receive a monthly stipend equal to the provincial minimum wage — currently Rp3.3 million ($200) — for a six-month period.
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Hartarto said the scheme could help absorb up to 10% of new graduates into the workforce.
The internship program is part of eight economic stimulus measures the government plans to accelerate in 2025 to spur growth in Southeast Asia’s largest economy.
Indonesian Chamber of Commerce and Industry (Kadin) Chairman Anindya Bakrie said the business sector supports the program and expects it to benefit companies and the broader economy.
“This initiative can significantly strengthen talent pipelines for businesses while also boosting national economic growth,” he said.
Manpower Minister Yassierli recently said 1.01 million graduates were unemployed this year. Statistics Indonesia (BPS) reported total unemployment at 7.28 million as of February 2025.
That figure rose 1.11 percent, or about 83,450 people, from the previous year. University graduates accounted for 4.76 percent of the total workforce.
Unemployed also included 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.
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Translator: Martha Herlinawati Simanjuntak
Editor: Rahmad Nasution
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