Antara News·Indonesia·Tuesday, October 27, 2026 at 09:01 AM UTC

Indonesia's unemployment rate drops to 4.65 pct, the lowest since 1994

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Bayu Saputra, Resinta Sulistiyandari

Jakarta (ANTARA) - Indonesia's open unemployment rate fell to 4.65 percent in 2026, the lowest since 1994, the government announced on Tuesday.

"The 4.65 percent TPT reflects the success of various real sector and investment incentive programs in facilitating labor market needs," Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs, said.

Under International Labour Organization (ILO) and Statistics Indonesia (BPS) standards, the open unemployment rate (TPT) measures job seekers as a percentage of the total national labor force.

The 2026 rate shows the labor market's capacity to absorb workers and is close to the 4.36 percent recorded in 1994.

Limanseto said the result reflects the effectiveness of the consistent national economic recovery.

The figure is significant because the labor force has grown to 155.41 million people in 2026, nearly double the 83.32 million recorded in the 1990s.

"Being able to suppress the TPT to near its lowest level amidst a massively expanding workforce confirms the rapid creation and absorption of new jobs in various economic sectors," Limanseto said.

For comparison, the rate spiked to 11.24 percent in 2005 amid sluggish labor absorption and domestic economic pressures following the monetary crisis. The COVID-19 pandemic then pushed the rate to 7.07 percent in 2020.

Limanseto said the steady decline to 4.65 percent shows effective economic management and a recovery in industrial competitiveness.

"The government remains committed to enhancing workforce quality through vocational training, skills development, and greater industrial absorption," he said.

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