Fourth most populated country on the planet with 284 million inhabitants, Indonesia wants to make a place among the giants of this world. Currently 16th global economic power, intends to integrate the Top 10 from 2030 before aiming a quarter in 2045. An ambition reinforced by the dynamic growth of its GDP: around 5% per year from the Asian crisis of 1997.
And to try to compete with the main developed countries, Indonesia has an asset that Western economies in particular have: their demography. With a population that increases by an average of 1.13 % per year, “GDP per capita multiplied by six, from 2000 to 2022”, explained in 2024 a study by the General Directorate of the Treasury.
“Demographic bonus”
Indonesia is now taking advantage of what experts call a “demographic bonus”: more than 70% of its population is the working age (15-64 years) against just over 60% in France. A proportion that should increase even more until 2045, according to a study by the IDN Research Center.
There, generation Z (born between 1997 and 2012) is already the most numerous (27.94% of the total population), ahead of millennials (born between 1980 and the mid -1990s) that represent 25.87% of the population. The median age of the Indonesian population reached only 30 years against 42 years in France and even almost 45 years in the EU according to the European Commission.
What to delight former Pope Francis, visiting Yakarta last year: “In their country, people ago three or five children, this is an example for each country, while some prefer to have only a cat or a small dog,” said the sovereign pontiff.
The reality is not at all that: if the Indonesian fertility index exceeded 5 children per woman in 1975, it fell as the country was developed with an effective family planning program. Now around 2. is established in spite of everything to guarantee the replacement of generations. At the same time, life expectancy reaches a little more than 70 years, but advances from one year to another. That is why the Government noticed the retirement age at the beginning of the year … at 59. Far away the levels observed in Western economies given the number of assets in the country.
Indonesians considered too old excluded from the labor market
If the “demographic bonus” is a blessing for Indonesia, in itself it cannot stimulate the Indonesian economy. It is still necessary for public authorities to believe the conducive conditions so that it really participates in the development of the country without becoming a weight. However, at this stage, Yakarta does not seem to be able to completely exploit this advantage.
In health first, President Pabowo suffered in 2024 certainly established a program against malnutrition through the distribution of free meals for 83 million schoolchildren and pregnant women. Objective: Combat delays in the growth of which one in five Indonesian children is a victim. But, beyond its cost considered amazing (more than 20 billion euros), cases of food poisoning and logistic difficulties quickly harmed to the initiative.
Then, on the job front, the situation is far from optimal despite the amount of arms available. In recent days, local media have echoed some Indonesians in the labor market with frequent cases of job offers with age limit, sometimes demanding that candidates be less than 30 years old.
“Some companies interpret productivity in terms of age. They also hesitate to hire older workers, because they think they will gain a higher salary or have too much experience for the position,” he said Deutsche Welle Indonesia Telisa Felianty, economist at the University of Indonesia.
A disenchanted youth
The unemployment rate in Indonesia is currently around 5%, but it is certainly estimated due to the weight of the informal economy that represents 60% of the country’s employment. This “constitutes a real brake, with a salary level approximately double that in the formal sector according to the OECD,” underlines a study by BPI France.
The organization also points out “the low level of rating of workers” that “also weighs on productivity.” And the announcement at the beginning of the year of President Pabowo suffered budget cuts of 18 billion euros, especially in education should not organize anything.
This decision and, in general, the way in which public finances are managed in the country caused the anger of the students who went to the street several times to protest. A movement marked by the slogan “#kaburajadulu” (“It is time to flee”), made famous on social networks during the protest that highlighted the discomfort of an Indonesian youth frustrated for not being heard and worried about the future.
They flee, many young Indonesians are already doing it. Faced with the lack of professional opportunities or due to the remuneration considered too weak, many abandon the country for the economies developed in the region such as Japan, Taiwan or South Korea. According to Le Monde, around 5 million Indonesians would live today in one of these three countries. And young Indonesians are not encouraged to stay. In response to the Popularized Hashtag during the February demonstrations, the Assistant Labor Minister said: “Flee if necessary, and do not return.”
A poverty rate even high
Thanks to its vigorous growth, Indonesia managed to reduce its poverty rate that reached 8.47% in March in the sense of the Indonesian Statistical Institute, against more than 10% four years ago. But in the sense of the World Bank that uses another methodology, poverty is much greater, since it would refer to 60.3% of the population.
And inequalities remain important, between the richest and most modest, but also among the inhabitants of urban areas (6.7%poverty rate) and those of rural areas (11%), according to the Indonesian Statistical Institute.
This is what he wants to fight Dedi Mulyadi, governor of the province of Java-Oost. In April, he aroused the controversy by stating that poverty was mainly due to the number of children raised in the poorest homes. Before suggesting to give social assistance to men, provided they accept a vasectomy.
“I don’t know why poor families generally have many children, while rich have trouble having them, even after paying two billion rupees per IVF (…) stops having children if they can’t support them,” he launched. Provocative statements that have won many criticisms, reports the South China Morning Post. The government quickly wanted to extinguish the controversy judging the “non -relevant” and “difficult to implement” idea.
Source: BFM TV
