Business · Economy · 4 hrs ago
Indonesia Gets Fewer Jobs From Economic Growth as Industry Adopts Technology
Indonesian Industry Minister Muhammad Sarmuji says each 1% of economic growth now adds about 300,000 workers, compared with around 400,000 in the past.
He said Indonesia's manufacturing industry employs more than 20 million people.
But factories that once relied on large workforces are increasingly using technology, which can reduce the number of workers they need.
This means faster industrial growth may not create as many jobs as before, a challenge for Indonesia with its large working-age population.
Sarmuji said training skilled workers for jobs abroad could help, as some countries face stagnant or falling populations.
He named Japan, South Korea, Qatar and Singapore as places with potential demand for Indonesian workers.
Indonesia’s industry minister says economic growth is creating fewer jobs than in the past.
He said about 300,000 additional workers for each 1% of economic growth is now a positive result, compared with about 400,000 previously.
He attributed the decline in job creation to industries using more technology in production.
Indonesia’s manufacturing industry employs more than 20 million people, according to the minister.
He said sending skilled Indonesian workers to countries with worker shortages could help address the challenge.
- Who
- Industry Minister Muhammad Sarmuji discussed the decline in job creation linked to economic growth.
- What
- He said each 1% of economic growth now adds about 300,000 workers, down from about 400,000 previously.
- When
- October 15, 2026.
- Where
- An Industry Education and Training Center in East Jakarta, Indonesia.
- Why
- Industries are increasingly using technology in production, reducing their need for workers.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Job additions per 1% growth now
- About 300,000 workers
- Job additions per 1% growth previously
- About 400,000 workers
- Manufacturing employment
- More than 20 million workers
- Countries cited as potential destinations
- Japan, South Korea, Qatar and Singapore
- Date of remarks
- October 15, 2026
What people are saying
If in the past each 1% of economic growth could absorb around 400,000 workers, today almost 300,000 is already quite good
What used to be very labor-intensive has now incorporated technology, which is very likely to result in lower labor absorption than before
One solution is that we can send our skilled workers to fill positions that are actually needed in other countries