Jakarta Assembly Faction Warns of Hidden Unemployment and Poverty Risks

A political faction in Jakarta's regional assembly has cautioned the provincial government against an overemphasis on positive macroeconomic achievements. The Democratic-Perindo Party faction stressed that beneath the surface of economic growth and low poverty rates lie significant challenges concerning job quality and the economic precariousness of residents.

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Formal job growth slowed from 4.87 percent to 1.63 percent, while informal employment grew by 3.68 percent.

Neneng Hasanah, the deputy chair of the faction, pointed out that while Jakarta's unemployment rate stood at 6.05% in August 2025 with 5.18 million employed, the growth of formal employment had slowed considerably. "Formal job growth slowed from 4.87 percent to 1.63 percent, while informal employment grew by 3.68 percent," she stated during a plenary meeting. Hasanah argued this indicates that new jobs are predominantly in the informal sector, offering less job security and social protection, thus leaving many workers at risk.

The faction also raised concerns about "hidden poverty" in Jakarta. Despite an official poverty rate of 4.03% in September 2025, below the national average, many residents live precariously close to the poverty line. The poverty line in Jakarta has risen significantly, with a substantial portion of it allocated to food expenses. Hasanah warned that these individuals are highly vulnerable to falling back into poverty due to rising essential goods prices or job losses.

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The success of employment programs should not only be measured by the number of participants, but by how many participants successfully get jobs after participating in the program.

Consequently, the Democratic-Perindo faction called on the provincial government to enhance job training and certification programs to ensure they translate into actual employment. They also urged for stronger price controls on basic necessities and more effective, targeted social protection programs to support vulnerable populations.

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Many residents still live slightly above the poverty line and are very vulnerable to being pushed back into poverty when facing rising prices of basic necessities or job loss.