Indonesian Political, Business & Finance News

DKI Jakarta Regional Parliament Intensifies Drive to Reduce Unemployment

| Source: TEMPO_ID Translated from Indonesian | Social Policy

The DKI Jakarta Regional Parliament (DPRD) held a coordination meeting to discuss the 2026 employment sector budget allocation on Wednesday, 25 February 2026.

DPRD Chairman Khoirudin stated that the employment budget discussion focused on concrete efforts to reduce unemployment in Jakarta by creating opportunities to improve human resources (HR) competency.

Jakarta’s unemployment rate remains relatively high at 6.4 per cent. Of the 5.5 million workforce, approximately 350,000 residents remain unemployed.

This figure has drawn serious attention from the regional government, as it risks creating further social consequences if not addressed sustainably. Although the rate has declined by 0.1 per cent, it is considered far from acceptable levels.

Khoirudin stressed that the unemployment rate in the capital has exceeded reasonable limits and poses the potential to trigger various social problems, including increased criminality risk. “Unemployment is already leading to criminality because it has indeed doubled from normal limits,” Khoirudin said.

He therefore urged more serious and sustained intervention measures to mitigate the negative impacts of high unemployment.

Through the employment budget discussion, he affirmed that the DKI Jakarta DPRD is committed to advancing policies and programmes oriented towards job creation. This includes improving worker skills, providing social protection for job seekers, and optimising budgets.

According to Khoirudin, budget optimisation and the involvement of regional state-owned enterprises (BUMDs) are crucial to reducing unemployment in Jakarta. The unemployment rate has reached concerning levels, he stated.

The DKI Jakarta DPRD is therefore exercising oversight functions by coordinating with the DKI Provincial Government, particularly to advance the employment sector. “What we are doing is to serve Jakarta residents,” he said.

He argued that budget policies that are more focused and supportive of job seekers should be pursued immediately so that unemployment reduction efforts can operate effectively. He believed that current budget allocations do not fully address unemployment comprehensively, requiring sharpening of programmes and priorities that genuinely address job seekers’ needs. “I see our budget is not yet aligned with solving the unemployment problem,” Khoirudin said.

Khoirudin therefore asked the Regional Government Budget Team (TAPD) and relevant regional agencies to ensure that budget prioritisation is realised tangibly, especially in worker training programmes for the community. “We cannot have community members wanting to participate in training but unable to do so due to lack of funds,” he said.

The reduction in the budget of the DKI Jakarta Department of Labour, Transmigration and Energy (Disnakertransgi) has limited the number of worker training participants that the government can accommodate.

In 2025, the Disnakertransgi budget was 714 billion rupiah. In 2026, it has become 401 billion rupiah. “The number of training participants has become very limited,” Khoirudin said.

As an alternative measure, he advocated for tasking regional state-owned enterprises (BUMDs) to contribute to creating employment opportunities and supporting unemployment management.

Amidst economic pressure and limited job opportunities, collaborative solutions are necessary, Khoirudin said.

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