Indonesian Political, Business & Finance News

East Java Receives Award for Best Regional Government in Reducing Unemployment

| Source: DETIK Translated from Indonesian | Economy
East Java Receives Award for Best Regional Government in Reducing Unemployment
Image: DETIK

The East Java Provincial Government has achieved First Place in the Unemployment Rate Reduction category at the 2026 Regional Government Achievement Awards (Java-Bali Region) organised by the Ministry of Home Affairs. Following this achievement, East Java will receive a fiscal incentive of Rp3 billion from the central government as appreciation for implementing development programmes with a tangible impact on the community.

The award was presented directly by the Coordinating Minister for Political and Security Affairs, Djamari Chaniago, to the Governor of East Java, Khofifah Indar Parawansa. Upon receiving the award, Khofifah expressed her gratitude, noting that the achievement is the result of collaborative efforts between local governments, the business sector, and the industrial sector to reduce unemployment.

According to data from the Central Bureau of Statistics (BPS) East Java, the Open Unemployment Rate (TPT) in East Java fell to 3.55 per cent in February 2026, down from 3.61 per cent in February 2025. This figure is significantly lower than the national average of 4.68 per cent. Over the last five years, East Java has shown a consistent downward trend, dropping from 5.17 per cent in February 2021 to 3.55 per cent in February 2026.

Khofifah highlighted that a key factor in this decline is the strengthening of the ‘link and match’ between vocational education and industry needs. Specifically, the unemployment rate for Vocational High School (SMK) graduates decreased to 5.73 per cent in February 2026, from 5.87 per cent in February 2025, meaning SMK graduates are no longer the highest contributing group to unemployment in the province.

The provincial government has actively fostered synergy between vocational schools, training centres, and industries through competency-based training, industrial internships, and expanded job placement opportunities. East Java has established labour placement partnerships with 13 countries, providing international opportunities for vocational graduates. In 2026, 4,920 participants from 112 vocational schools and training centres participated in overseas internship and job programmes, with 1,617 participants successfully securing fixed-term employment contracts.

In addition to falling unemployment, the quality of the East Java labour market has improved, with the Labour Force Participation Rate (TPAK) rising to 74.78 per cent. The number of employed residents reached 24.25 million, an increase of approximately 388,000 people compared to the previous year. Khofifah emphasised that the fiscal incentive from the central government will be optimised to strengthen human resource development, entrepreneurship, and the investment ecosystem to ensure widespread job absorption.

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