He emphasized that salaries will be fully funded by the State Budget (APBN), relieving companies of any payment responsibility.
"Companies do not pay for the incentive; it will be covered by the government," Hartarto said at a press conference.
The program, part of the 2025 economic stimulus package, aims to align the education sector with industry needs through a "link and match" approach. It will run for six months — three months in 2025 and three months in 2026 — with a possible extension following evaluation.
The government has allocated Rp198 billion (US$12.2 million) to cover salaries for 20,000 fresh graduates.
Separately, Minister of Manpower Yassierli said that wages will be based on the provincial minimum wage (UMP).
"The calculation is an initial estimate, depending on the UMP," he explained.
Both private companies and state-owned enterprises (SOEs) will be eligible to participate, with firms required to prepare internship plans, placements, and mentoring mechanisms.
Technical guidelines are being drafted under a ministerial regulation, while collaboration will prioritize companies registered in the Company Mandatory Employment Reporting System (WLKP).
Yassierli added that participating sectors will remain open and evenly distributed across provinces.
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Translator: Resinta Sulistiyandari
Editor: Anton Santoso
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