Apa Yang Salah Dengan Ekonomi Indonesia?

Summary

The video discusses the current challenges in Indonesia's job market, highlighting the rising difficulty in finding employment due to a mismatch between supply and demand. Despite economic growth, many do not feel the benefits, with a shrinking middle class and rising unemployment, particularly among Gen Z. The speaker explores Indonesia's premature deindustrialization, comparing it with successful industrial transitions in China and South Korea. They suggest key solutions like better planning, infrastructure development, attracting foreign investment, and personal skill improvement to compete in the evolving job market.

Takeaways

• 📉 The job market in Indonesia is struggling, with a significant mismatch between available jobs and job seekers, leading to high competition.
• 🔺 Layoffs in Jakarta have surged by 1000%, and nearly 10 million Gen Z members are currently unemployed.
• 📊 Although Indonesia's economy is growing by over 5%, many people, especially the middle class, are not experiencing the benefits, with the middle class shrinking.
• ⚠️ Indonesia is facing a premature deindustrialization problem, where the country shifted away from manufacturing before reaching the necessary level of development.
• 🏭 Manufacturing job creation has dropped drastically, and informal jobs are on the rise, causing economic stagnation and lower quality employment.
• 🇨🇳 The comparison with China and South Korea shows how these countries transitioned through agriculture, manufacturing, and services, but Indonesia has struggled to follow the same path.
• 💼 The government needs to improve ease of doing business, attract foreign investment, and tackle corruption to address the challenges and ensure sustainable growth.
• 📊 Legal certainty and law enforcement must be strengthened to boost investor confidence and economic stability.
• 📚 Workers should focus on upgrading skills, particularly in areas that can't be easily replaced by automation or AI, to remain competitive in the evolving job market.
• 🏗️ Infrastructure development, solid government planning, and meritocratic leadership are critical to helping Indonesia achieve its goal of becoming a developed nation by 2045.

Q & A

Why is it becoming increasingly difficult to find a job in Indonesia?

The job market in Indonesia is becoming more competitive due to a limited number of job openings, while the number of job seekers is rising. For example, in 2023, there were only around 270,000 job openings for 1.8 million job seekers, resulting in tough competition for each available position.

What is 'premature deindustrialization,' and how does it affect Indonesia's economy?

'Premature deindustrialization' refers to the decline of the manufacturing sector before a country has fully benefited from it. In Indonesia’s case, the country moved away from manufacturing too early, without a strong foundation, which led to reduced job creation and the shrinking of the middle class.

How does Indonesia's economic path differ from countries like China and South Korea?

Unlike China and South Korea, which followed a structured path from agriculture to manufacturing and then to services, Indonesia moved into deindustrialization prematurely. China and South Korea developed their manufacturing sectors to a significant level (35-40% of their economy) before transitioning to service-based economies, while Indonesia only reached around 29% before its manufacturing sector began to decline.

What are the consequences of the decline in Indonesia's manufacturing sector?

The decline in Indonesia's manufacturing sector has led to fewer formal job opportunities and pushed more people into the informal sector. As a result, the middle class is shrinking, and many people are at risk of falling into poverty.

What role do foreign direct investments (FDI) and infrastructure play in boosting Indonesia's economy?

Foreign direct investment (FDI) and infrastructure development are critical for Indonesia’s economic growth. FDI brings new technology and knowledge, while infrastructure development reduces logistical costs, making the country more competitive and attractive to businesses.

What are some of the challenges investors face when doing business in Indonesia?

Investors in Indonesia face bureaucratic hurdles, such as complicated permit processes, high costs, and corruption. For instance, getting a warehouse permit in Indonesia requires 18 procedures and takes 191 days, costing up to 5% of the warehouse price.

How does corruption affect Indonesia's ability to attract foreign investment?

Corruption in Indonesia creates legal uncertainty, making it difficult for investors to trust the system. In Transparency International’s surveys, 92% of respondents saw corruption as a major problem, which undermines investor confidence and deters foreign direct investment.

What can individuals do to improve their employability in a challenging job market?

Individuals should focus on upgrading their skills, especially in areas that cannot easily be replaced by automation or AI. Developing expertise in niche areas and continuously improving can increase one's value to employers and open opportunities for growth.

Why is meritocracy important for Indonesia's future leadership?

Meritocracy ensures that leaders and officials are chosen based on competence and experience rather than political connections. This leads to better decision-making and more effective policies that can boost economic growth and job creation.

What are some practical steps the Indonesian government could take to improve the job market and economy?

The government can improve the ease of doing business by simplifying bureaucratic procedures, ensuring legal certainty, and reducing corruption. Additionally, they should focus on building infrastructure, supporting the manufacturing sector, and fostering education and skills training to increase the competitiveness of Indonesia’s workforce.