Economist Warns Indonesia’s Economic Growth Is Not Translating into Jobs
An economist from the CSIS warns that Indonesia's 5.45% economic growth is failing to create sufficient quality jobs. Most new employment is occurring in the informal sector, while unemployment among university graduates is rising.
Why it matters
This highlights a critical structural challenge for emerging economies where GDP growth does not automatically translate into improved public welfare or stable employment.
August 18, 2026 | 9:27 pm SHARE URL berhasil di salin. Center for Strategic and International Studies (CSIS) researcher Yose Rizal Damuri speaks during a discussion at B-Universe Media Holdings in Tangerang, Banten, Tuesday, Aug. 18, 2026. (Joanito De Saojoao) Tangerang. Indonesia's 5.45% economic growth in the first half of 2026 has yet to translate fully into improved public welfare because it has failed to generate a significant number of jobs, an economist said on Tuesday.
Indonesia's main challenge is not simply to pursue higher economic growth but to ensure that growth -- and investment in particular -- creates more quality jobs, said Yose Rizal Damuri of the Center for Strategic and International Studies (CSIS).
Yose said economic growth remains an important measure of economic performance, but strong headline figures should be accompanied by tangible benefits for the public.
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