BSKDN Interior Ministry Develops Instrument to Measure Unemployment Reduction Performance
The Interior Ministry’s Domestic Policy Strategy Agency (BSKDN) is strengthening its strategic role in supporting improved governance quality at the regional level, particularly in efforts to reduce unemployment rates.
BSKDN Head Yusharto Huntoyungo emphasised that reducing unemployment at the regional level requires an approach that considers not only final outcomes, but also the governance processes that support them.
“We greatly appreciate the efforts that regions have made in reducing unemployment figures. However, more comprehensive measurement instruments are needed so that these achievements can be assessed objectively and sustainably,” Yusharto stated during a forum discussion entitled “Measuring and Assessing Regional Government Performance in Reducing Unemployment Rates” in Jakarta on 17 March.
He also stressed the importance of cross-sectoral collaboration in developing measurement methodologies, including partnerships with academia and relevant ministries and institutions. Yusharto hopes that support from various stakeholders in designing indicators and the availability of adequate data can support field observation processes.
“We are very open to refining existing indicators. Strong data support is key to ensuring measurement results are more comprehensive,” he added.
Furthermore, Yusharto explained that performance measurement should not only be viewed from the open unemployment rate perspective, but also from the perspective of increased job opportunities. “We want to look at both aspects – both related to the open unemployment rate and from the aspect of job opportunities, this is important so that resulting policies are more precisely targeted,” he stated.
Senior researcher at The SMERU Research Institute Asep Suryahadi emphasised the importance of indicators capable of addressing employment challenges more specifically and contextually. Without appropriate indicators, efforts to measure regional government performance risk failing to capture the root causes of employment problems.
“There are indicators that require attention so that employment challenges can be addressed properly,” he said.
In line with this, a representative from the Ministry of Manpower M. Mustafa Sarinanto reported that national unemployment trends showed improvement post-pandemic, although challenges remain in terms of job quality.
“Unemployment did increase following the COVID-19 pandemic, but it has now begun to slow. From 2021 to 2025, the number of unemployed shows a downward trend. However, most labour absorption still occurs in the informal sector with relatively low wage levels,” Mustafa explained.
He also noted that the continued dominance of the informal sector, which remains stagnant, is an indicator that the labour market has not fully moved towards a more productive direction.
Yusharto emphasised the importance of eight principles of regional innovation based on science and evidence-based policy. Challenges such as equitable development and social stability require collaborative work that is not limited to a single organisational structure.
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