Menko Airlangga Advocates Strengthening the Labor Market for the Youth at WEF Special Meeting

Jakarta, INTI - The world is currently grappling with inequalities due to slowing global growth, climate change threats, escalating geopolitical tensions, and ineffective public policies. More than 25% of the youth are unemployed, lack access to education, and possess limited skills, making it challenging for them to compete in the job market. Vulnerabilities like these are more prevalent in developing countries and among female populations. Hence, in search of various solutions and future opportunities to address these issues, the World Economic Forum (WEF) convened a dialogue at the Special Meeting session on Labour Markets for the Next Generation at the King Abdul Aziz Conference Center in Riyadh, Saudi Arabia, on Sunday (28/04).

During the event, Indonesian Minister of Coordination for Economic Affairs Airlangga Hartarto, along with other panelists, including Nigerian Minister of Industry, Trade, and Investment Doris Anite, Vice-Chairman, Global Public Sector, Citi United States Jay Collins, CEO of Crescent Enterprise UAE Badr Jafar, and Founder/Chairman of DAMAC International, UAE Hussain Sajwani, exchanged ideas in a panel discussion aimed at shaping and contributing to employment issues, particularly in the youth labor market, both regionally and globally.

Various issues were discussed among the panelists, followed by a Q&A session with participants. The discussion focused on the current state of global economic growth and its effects on the labor market, investments, labor market trends, how technology adoption can change jobs, and Government strategies to prepare the youth for global developments and changes. Recent issues such as the role of AI, hybrid work mode changes, and the emergence of green jobs amid climate change threats were also addressed.

In preparing a dynamic labor market, Indonesia has taken comprehensive anticipatory measures to invest in training and education, including early childhood education, vocational training, and job seeker preparation and training. Minister Airlangga emphasized the importance of MSMEs as part of job creation efforts in Indonesia, while also highlighting the success of the Job Creation Law in effectively reducing domestic and foreign investment barriers.

Notably, foreign direct investment (FDI) increased by an average of 29.4% in the five quarters following the implementation of the law. Referring to MSMEs, Minister Airlangga also mentioned that public policy implementation with inclusive financing incentives, technical assistance, and digital infrastructure equalization are among the Government's priority efforts, including in realizing Indonesia Emas 2045.

In response to the moderator's question about the Indonesian Government's strategy to promote the youth labor market, Minister Airlangga emphasized the importance of digitalization.

"Indonesia uses digitalization as a new engine of growth and education to support digitalization such as cooperation with IBM and the Apple Academy," said Minister Airlangga, who also emphasized the framework declared during Indonesia's Chairmanship of ASEAN 2023.

In the same vein, Minister Airlangga also unveiled the Merdeka Belajar (Freedom to Learn) program, where students can gain internship experiences. Additionally, there are super deduction incentives for research activities and various other tax incentives for education. Furthermore, Minister Airlangga also highlighted the magnitude of Indonesia's challenges in the field of labor.

"Indonesia is a large country, if projected onto Europe, it would span from Ireland to Kazakhstan. Indonesia's population is vast, with almost 5 million new births every year. Therefore, Indonesia must prepare at least 5 million jobs annually," concluded Minister Airlangga.