chapter  6
20 Pages

“The perfect storm”

Constraints on Indonesian economic growth posed by graduate work-readiness challenges
WithSoegeng Priyono, Alan Nankervis

This chapter explores the dilemmas facing Indonesia as it strives to become a competitive Southeast Asian economy, with the advantages of a stable political system and the demographic dividend of a large and relatively young potential workforce. It discusses the nature and characteristics of the Indonesian labour market; government policies, and the structure of the education system. The chapter then discusses the particular graduate work-readiness challenges faced by Indonesian employers and educational institutions, and their causes; and a range of practical strategies which have been developed to address these challenges. Indonesia is one of the few countries in the world which has a Ministry of Religious Affairs within the government. The majority of the populations are Muslim, mostly moderates, and the majorities are of the Sunni denomination. According to Asian Development Bank (ADB) analyses, 'slow jobs growth and high levels of labour under-utilisation' threaten both Indonesia's future economic development and its ability to match labour demand and supply.