Antara News·Indonesia·Saturday, November 7, 2026 at 09:59 AM UTC

Indonesia intensifies investment to expand quality employment

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Muhammad Harianto, Resinta Sulistiyandari

Jakarta (ANTARA) - The Indonesian government is promoting investment and downstream processing as part of its economic transformation agenda to create quality jobs, raise industrial value-added, and broaden employment opportunities across regions.

Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said the government continues to pursue investment as a key instrument of economic transformation to expand the national industrial base, increase productivity, and create quality jobs for the community.

"Investment and downstreaming are expected to continue strengthening the industrial base, increasing domestic added value, and opening up job opportunities in various regions," he conveyed on CNBC Indonesia's Power Lunch program on Saturday.

He believes shifts in the economic structure must be addressed through job creation that delivers broader benefits to communities.

In the two years of this administration, Wibowo informed that realized investment reached Rp3,923.2 trillion (US$216.65 billion) and absorbed around 5.49 million workers across Indonesia.

He mentioned that employment generated by these investments is also distributed across regions, with around 51.8 percent of jobs located outside Java, contributing to regional economic growth.

Wibowo added that economic structural changes must go hand in hand with workforce skills development to ensure people are equipped to take advantage of expanding job opportunities.

To this end, the government is preparing an internship program for 150,000 participants and vocational education for up to 300,000 participants by 2027.

The government is also providing support through the Government-Borne Income Tax (PPh) Article 21 policy for workers with salaries below Rp10 million (US$552), to be expanded to all sectors by 2027; as well as a 50 percent discount on Work Accident Insurance (JKK) and Death Insurance (JKM) contributions.

Wibowo said these measures are expected to help workers adapt to changing job demands while maintaining household purchasing power.

Besides industry and downstream processing, tourism also has the potential to create more formal jobs. Its growth, however, requires better skills, innovation, and distinctive tourism products.

He noted that several destinations have shown how creative design, product packaging, and promotion can enhance tourism appeal, which depends not only on natural resources but also on the unique experiences offered to visitors.

"Development in this sector can also create opportunities for workers and creative economy players," he added.

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