Indonesia Sets Target of Up to 3.59 Million New Jobs in 2027

Indonesia’s government and parliament have agreed to target as many as 3.59 million new jobs in 2027, while setting the formal-employment share at 40.81% of total job creation.

The figures were agreed during a meeting involving the Finance Ministry, Bank Indonesia, the Financial Services Authority, BPI Danantara and the National Development Planning Agency, or Bappenas. They will serve as macroeconomic assumptions for the 2027 State Budget Bill.

The job-creation target ranges from 2.57 million to 3.59 million opportunities. Parliament also agreed to a poverty-rate target of 6% to 6.5%, while extreme poverty should remain between 0% and 0.5%. Commission XI chairman Mukhamad Misbakhun said the upper limit reflected concern that even one person living in poverty should not be overlooked: “0.05, because if there is still one person who is poor, it means something.”

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Job creation [target] ranges from 2.57 million to 3.59 million job opportunities.

The agreed Gini ratio target is 0.360 to 0.365. Open unemployment is projected at 4.30% to 4.87%, and the human capital index is expected to reach 0.575. The government also set farmer welfare targets equivalent to an exchange-value index of 126 to 128, and fisher welfare targets of 106 to 110.

Gross national income per capita is targeted at $5,800 to $5,840, or 98.54 million to 99.22 million rupiah. The environmental quality index is expected to reach 76.84. Other assumptions include 6% economic growth, 2.5% inflation, a rupiah exchange rate of 17,500 per dollar and a 10-year government bond yield of 6.9%.

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0.05, because if there is still one person who is poor, it means something.