Indonesia to launch national internship programme with government-funded wages
- Josephine Tan
The Indonesian government is preparing to launch a national internship programme in Q4 2025, a key initiative aimed at tackling graduate unemployment and bridging the skills gap between academia and the business sector.
Coordinating Minister for Economic Affairs Airlangga Hartarto announced the programme would be a national priority, designed to foster “link and match” collaboration between universities and both private organisations and state-owned enterprises (SOEs).
A major incentive for participating organisations is that the government will fully cover the cost of participant wages. “Organisations do not pay for the incentive; it will be covered by the government,” Hartarto stated, clarifying that the salaries would be funded directly from the State Budget (APBN). The allocated budget for this is Rp198 billion (US$12.2 million) to cover stipends for 20,000 fresh graduates.
Participants will receive a monthly stipend equal to the provincial minimum wage (UMP), which is currently Rp3.3 million (US$200), for six months. The programme is part of eight economic stimulus measures planned for 2025.
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The initiative comes as the country faces a significant challenge with graduate unemployment. According to Manpower Minister Yassierli, 1.01 million graduates were unemployed this year. Statistics Indonesia (BPS) reported a total unemployment figure of 7.28 million as of February 2025.
Hartarto estimates the programme could help absorb up to 10% of new graduates into the workforce. The Indonesian Chamber of Commerce and Industry (Kadin) Chairman, Anindya Bakrie, voiced strong support from the business sector, noting that the initiative “can significantly strengthen talent pipelines for businesses while also boosting national economic growth.”
To participate, organisations must prepare internship plans, placements, and mentoring mechanisms. Technical guidelines are being developed, and priority will be given to organisations registered in the Company Mandatory Employment Reporting System (WLKP). The programme’s participating sectors will remain open and distributed evenly across provinces, reported Antara.
