logo
Indonesia faces brain drain as skilled graduates leave for jobs abroad

Indonesia faces brain drain as skilled graduates leave for jobs abroad

The Star2 days ago

JAKARTA: Indonesia has seen an increasing outflow of skilled young adults seeking work abroad in a brain drain phenomenon experts attribute to concern around job opportunities within the country.
Twenty-five-year-old political science graduate Fikri Haikal obtained a working holiday visa (WHV) in Australia and now makes a living as a poultry factory worker.
'I never thought I would be a factory worker,' he said, explaining that his original plan had been to go abroad for higher education, but he failed to get a scholarship, and peer influence then convinced him to join the WHV programme instead.
He had searched and applied for jobs in Indonesia, Fikri said, but received no job offers.
'Meanwhile, in Australia, securing a job is easy, because there is a shortage of labour in certain sectors, such as in manufacturing,' he told The Jakarta Post on May 23.
Indonesians are the largest citizenship group in Australia's WHV programme, with the number of granted visas surging from 2,984 in the 2022-2023 period to 4,285 in 2023-2024, according to the Australian Department of Home Affairs.
On social media, graduates and young professionals have been sharing their experiences with the WHV programme, citing better pay and quality of life, though some caution that 'it is not as easy as it looks'.
Frustrated jobseekers Hashtag #KaburAjaDulu (Just get out first) has been gaining traction on social media this year as frustration and pessimism mount over the country's economic situation and work conditions, encouraging people to seek better jobs abroad.
The blue-collar job in Australia provides Fikri with a salary exceeding his living costs, in addition to access to public facilities and a diverse sociocultural experience.
On the other side of the globe, Viona Maharani, a graduate from a vocational tourism college in Bali, is interning in the hospitality industry after recently relocating to the United States.
With prior experience as a casual worker at three five-star hotels in Bali, Viona sought to develop her career.
Acquaintances of hers who had worked abroad had told her that the US offered better opportunities for income and skill development.
'I will highly [value opportunities] to keep enriching my experience of working abroad, whether that will continue to be in the US or another country,' Vio told the Post on Sunday (June 1).
Experts say this brain drain, or the large-scale emigration of highly educated graduates and skilled professionals in search of better opportunities and a higher standard of living, threatens economic growth, if not handled properly.
Center of Reform on Economics (Core) Indonesia executive director Mohammad Faisal warned that a prolonged brain drain could lead to the country losing its best talent, who would otherwise contribute to job creation at home by helping to attract investment and driving technological progress.
Limited job opportunities mean the country's skilled workforce is not optimally absorbed, he said, as reflected in a shrinking share of formal compared with informal employment.
A recent report published by Core finds Indonesia lagging other countries of Southeast Asia when it comes to youth employment, or those aged 15 to 24.
Last year, the International Labour Organisation estimated that the youth unemployment rate in Indonesia stood at 13.1 percent, higher than in peer countries like India, Malaysia, Vietnam, the Philippines and Thailand.
A biannual survey published earlier this month by Statistics Indonesia (BPS) put youth unemployment at 16.16 percent, more than three times the overall unemployment rate of 4.76 percent.
According to the Core report, the stagnating youth employment reflects a failure to tap into the country's demographic dividend, with Indonesia now at risk of a demographic paradox: 'getting old before getting rich'.
Tadjuddin Noer Effendi, a labor expert at Gadjah Mada University (UGM), expressed doubt about the 'Golden Indonesia' vision of turning the country into one of the world's largest economies by 2045, given that skilled talent was moving abroad.
'The brain drain can slow down innovation [...] and hinders technological development, which ultimately affects economic competitiveness,' he explained to the Post on May 22.
Tadjuddin also argued that the brain drain was driven by increasing labour market uncertainty amid a lack of job opportunities and a surge in layoffs this year, as well as by widespread corruption and extortion disrupting the investment climate.
He warned that the emigration of skilled workers could leave sectors like health, technology and education facing labour shortages, and should more young and productive workers move overseas, the country risked being left with an aging population.
From brain drain to brain gain? However, Tajuddin noted a silver lining in the fact that migrants were often 'heroes of foreign exchange'.
Often well paid, Indonesian skilled workers living abroad could contribute to an increase in foreign exchange through remittances.
Migrants have long contributed significantly to the country's foreign exchange receipts, with the remittance inflow rising 13 percent to Rp 253 trillion (US$15.57 billion) last year, according to the Indonesian Migrant Workers Protection Agency (BP2MI).
Tajuddin also suggested that the government seize the opportunity of maximising the potential of brain gain, which would require providing adequate innovation infrastructure and facilities to attract and retain skilled talent.
'In the future, if the government can [invite Indonesians living abroad] back to Indonesia, it will be a huge gain, because they have plenty of experience and knowledge from abroad,' Tajuddin said. - The Jakarta Post/ANN

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Modern Living Home Expo draws over 60,000 visitors on last day
Modern Living Home Expo draws over 60,000 visitors on last day

Borneo Post

time17 hours ago

  • Borneo Post

Modern Living Home Expo draws over 60,000 visitors on last day

Hilmy (second right) and Tiong (fourth right) take a group photo during the event. — Photo by Frankie Junau KUCHING (June 9): The Modern Living Home Expo attracted over 60,000 visitors on its final day yesterday. According to organising committee chairman Nicholas Tiong, the three-day event at Metrocity Convention Centre here surpassed the turnout recorded at the previous expo held earlier in February at the Borneo Convention Centre Kuching. 'As of midday, we welcomed more than 60,000 visitors to the expo, exceeding the previous record of around 40,000. I am confident the number will continue to rise by this event, as many people tend to make their way to the venue during the final hours to take advantage of exclusive discounts from exhibitors,' he told reporters when met yesterday. The exhibition featured 300 booths, showcasing the offerings of 80 companies from across Kuching. These included the latest electrical appliances, home care essentials, DIY tools, and a variety of modern furniture. 'We chose Metrocity due to its strategic location and ease of access for the public, which is one of the key reasons for the significant increase in visitor numbers compared to the previous venue,' said Tiong. Meanwhile, Kuching North Datuk Bandar Dato Hilmy Othman, who visited the exhibition, expressed strong support for the organiser's initiative in hosting it. 'We truly welcome efforts such as this, as they help revitalise the local economy, especially in areas under DBKU's (Kuching North City Commission) administration,' he said, adding that DBKU would assist the organisers with any needs to facilitate similar events in the future. 'Following the post-Covid recovery, economic activities are beginning to thrive once again. We must continue to nurture economic opportunities that generate income for exhibitors and those indirectly involved in the local economic ecosystem. 'I have been informed that public response to this expo has been very encouraging, and I hope to see more such activities held here at MCCC, as they can generate greater business and employment opportunities for our community,' Hilmy said. exhibition lead Modern Living Home Expo Nicholas Tiong

Talent exodus fuels growing brain drain
Talent exodus fuels growing brain drain

The Star

time18 hours ago

  • The Star

Talent exodus fuels growing brain drain

JAKARTA: Indonesia has seen an increasing outflow of skilled young adults seeking work abroad in a brain drain phenomenon experts attribute to concern around job opportunities within the country. Twenty-five-year-old political science graduate Fikri Haikal obtained a working holiday visa (WHV) in Australia and now makes a living as a poultry factory worker. 'I never thought I would be a factory worker,' he said, explaining that his original plan had been to go abroad for higher education, but he failed to get a scholarship, and peer influence then convinced him to join the WHV programme instead. He had searched and applied for jobs in Indonesia, Fikri said, but received no job offers. 'Meanwhile, in Australia, securing a job is easy because there is a shortage of labour in certain sectors, such as in manufacturing,' he told The Jakarta Post on May 23. Indonesians are the largest citizenship group in Australia's WHV programme, with the number of granted visas surging from 2,984 in the 2022 to 2023 period to 4,285 in 2023 to 2024, according to the Australian Department of Home Affairs. On social media, graduates and young professionals have been sharing their experiences with the WHV programme, citing better pay and quality of life, though some caution that 'it is not as easy as it looks'. Hashtag #KaburAjaDulu (Just get out first) has been gaining traction on social media this year as frustration and pessimism mount over the country's economic situation and work conditions, encouraging people to seek better jobs abroad. The blue-collar job in Australia provides Fikri with a salary exceeding his living costs, in addition to access to public facilities and a diverse sociocultural experience. On the other side of the globe, Viona Maharani, a graduate from a vocational tourism college in Bali, is interning in the hospitality industry after recently relocating to the United States. With prior experience as a casual worker at three five-star hotels in Bali, Viona sought to develop her career. Acquaintances of hers who had worked abroad had told her that the United States offered better opportunities for income and skill development.' I will highly (value opportunities) to keep enriching my experience of working abroad, whether that will continue to be in the United States or another country,' Vio told the Post yesterday. Experts say this brain drain, or the large-scale emigration of highly educated graduates and skilled professionals in search of better opportunities and a higher standard of living, threatens economic growth if not handled properly. Centre of Reform on Economics (Core) Indonesia executive director Mohammad Faisal warned that a prolonged brain drain could lead to the country losing its best talent, who would otherwise contribute to job creation at home by helping to attract investment and driving technological progress. Limited job opportunities mean the country's skilled workforce is not optimally absorbed, he said, as reflected in a shrinking share of formal compared with informal employment. A recent report published by Core finds Indonesia lagging other countries of South-East Asia when it comes to youth employment, or those aged 15 to 24. Last year, the International Labour Organisation estimated that the youth unemployment rate in Indonesia stood at 13.1%, higher than in peer countries like India, Malaysia, Vietnam, the Philippines and Thailand. A biannual survey published earlier this month by Statistics Indonesia put youth unemployment at 16.16%, more than three times the overall unemployment rate of 4.76%. According to the Core report, the stagnating youth employment reflects a failure to tap into the country's demographic dividend, with Indonesia now at risk of a demographic paradox: 'getting old before getting rich'. Tadjuddin Noer Effendi, a labour expert at Gadjah Mada University or UGM, expressed doubt about the 'Golden Indonesia' vision of turning the country into one of the world's largest economies by 2045, given that skilled talent was moving abroad. 'The brain drain can slow down innovation and hinders technological development, which ultimately affects economic competitiveness,' he explained to the Post on May 22. Tadjuddin also argued that the brain drain was driven by increasing labour market uncertainty amid a lack of job opportunities and a surge in layoffs this year, as well as by widespread corruption and extortion disrupting the investment climate. He warned that the emigration of skilled workers could leave sectors like health, technology and education facing labour shortages, and should more young and productive workers move overseas, the country risked being left with an ageing population. However, Tajuddin noted a silver lining in the fact that migrants were often 'heroes of foreign exchange'. Often well paid, Indonesian skilled workers living abroad could contribute to an increase in foreign exchange through remittances. Migrants have long contributed significantly to the country's foreign exchange receipts, with the remittance inflow rising 13% to 253 trillion rupiah (US$15.57bil) last year, according to the Indonesian Migrant Workers Protection Agency. Tajuddin also suggested that the government seize the opportunity of maximising the potential of brain gain, which would require providing adequate innovation infrastructure and facilities to attract and retain skilled talent. 'In the future, if the government can invite Indonesians living abroad back to Indonesia, it will be a huge gain, because they have plenty of experience and knowledge from abroad,' Tajuddin said. — The Jakarta Post/ANN

MIDF Research: Crude oil prices to remain under pressure as supply outpaces demand
MIDF Research: Crude oil prices to remain under pressure as supply outpaces demand

The Sun

timea day ago

  • The Sun

MIDF Research: Crude oil prices to remain under pressure as supply outpaces demand

KUALA LUMPUR: Crude oil prices are expected to remain under pressure and could fall below US$65 (RM274) per barrel (pb) due to persistent oversupply and weaker demand projections, according to MIDF Amanah Investment Bank Bhd (MIDF Research). However, MIDF Research noted that prices may stabilise over the longer term, even as inventories continue to rise. Sentiment surrounding trade policy developments between the United States and China remains a significant risk to market movements, it said in a note. 'Natural gas and liquified natural gas (LNG) are expected to see a rebound after May 2025's maintenance round concluded for most of the global gas and LNG facilities. Nevertheless, the downside risks to the lower oil price remain on new exploration projects, but may be beneficial for onshore storage, long-term tankers and retail fuel,' it said. MIDF Research opines that the scenarios of the global oil market and global economy will continue to keep Brent crude oil price within the US$60-65 pb range, averaging around US$62 pb this month. 'This lower expectation is considering the risks of post-US trade tariff pause, as well as the stockpiling of oil inventories in the near term,' said MIDF Research. Meanwhile, the investment bank said Asean collaborations have offered a brighter outlook for the oil and gas (O&G) sector. MIDF Research stated that Petroliam Nasional Bhd (Petronas) is continuing its aggressive exploration and production activities in the upstream sector, despite lower crude oil prices. Meanwhile, the midstream and downstream divisions are expected to turn towards sustainability and green energy solutions, integrating these initiatives into their operations. 'During the Asean summit that concluded in May 2025, the transportation and logistics of LNG and carbon capture and storage (CCS) were highlighted as strategic priorities for the region. 'More focus was set on renewable energy and hydrogen projects to be integrated with the conventional O&G developments, providing a balanced and sound energy transition as highlighted in Malaysia's National Energy Transition Roadmap,' it noted. MIDF Research said regional cooperation is likely to expand through energy security, carbon credit management, Environmental Corporation America compliance and CCS solutions. 'In addition, we opine that domestic demand and robust LNG exports will continue to locally support the sector. 'Overall, we retain a 'Neutral' view on the O&G sector, as it continues to face challenges, primarily from oil price volatility, driven by output hikes from the Organisation of the Petroleum Exporting Countries plus and non-Opec producers, including sluggish global demand due to tariff-related uncertainties,' it added. – Bernama

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store