Apindo: Internship Programmes Alone Cannot Solve Unemployment

The Indonesian Employers’ Association (Apindo) has stated that the national internship programme cannot serve as the only solution to tackling unemployment. Its success must be accompanied by job creation through increased investment, industrial expansion, and regulatory certainty that encourages businesses to hire new workers.

“Internship programmes are a very important instrument for improving workforce readiness, but they cannot be the sole solution to overcoming unemployment,” said Apindo Chairwoman Shinta Kamdani in a written statement on Friday, 3 July 2026.

According to Shinta, Indonesia’s employment issues are a combination of challenges in workforce quality and limited job creation. The competence of graduates still needs to be improved to match industry needs. On the other hand, the business sector’s ability to absorb new workers remains constrained by an economic slowdown and increasingly capital-intensive investment.

Shinta cited data from Statistics Indonesia (BPS) showing that the annual demand for jobs reaches around 9.5 million to 12 million people, while the number of workers absorbed is only between 2.4 million and 4.8 million. Furthermore, the capacity of investment to generate employment has continued to decline. “If in 2013 every Rp 1 trillion of investment could absorb more than 4,500 workers, today that figure is only around 1,400 workers,” she said.

For this reason, Shinta urged the government to create a business climate that encourages investment and opens up new employment opportunities. She emphasised that incoming investment must be productive and labour-intensive.

Nevertheless, she welcomed the government’s target of involving 150,000 participants in the second batch of the National Internship Programme. She expressed hope that the programme, if executed well, could help narrow the gap between graduate competencies and industry requirements.

To improve the effectiveness of the internship programme, Apindo proposed three enhancements. First, a more precise mapping of workforce needs so that the competencies learned align with industry demands. Second, strengthening the selection and assessment process for participants to ensure a better match with companies. Third, standardising the quality of mentoring and the learning process within companies so that improvements in participant competencies can be clearly measured.

Shinta added that internship programmes could actually serve as an effective recruitment pathway. “However, the opportunity for participants to be hired as permanent employees depends on the company’s needs, economic conditions, and the evaluation results during the internship period,” she said.