Indonesia’s Brain Drain: A Growing Exodus of Skilled Talent
Indonesia is witnessing a significant outflow of skilled young professionals seeking better job opportunities abroad, a phenomenon widely referred to as “brain drain.” This trend is raising concerns among experts and policymakers, who warn that the country’s economic ambitions could be undermined if the loss of talent continues unchecked. The migration of educated Indonesians is driven by a combination of limited domestic job prospects, economic uncertainty, and the allure of higher wages and improved quality of life overseas.
Recent data from the Australian Department of Home Affairs shows a sharp increase in the number of Indonesians granted Working Holiday Visas (WHV), rising from 2,984 in 2022-2023 to 4,285 in 2023-2024. Indonesians now represent the largest citizenship group in Australia’s WHV program. Social media trends, such as the hashtag #KaburAjaDulu (Just get out first), reflect growing frustration among young Indonesians over the country’s economic situation and job market conditions.
Personal Stories: Seeking Opportunity Abroad
Fikri Haikal, a 25-year-old political science graduate, exemplifies this trend. After failing to secure a scholarship for further studies and receiving no job offers in Indonesia, Fikri moved to Australia under the WHV program. He now works in a poultry factory, a job he never envisioned for himself.
“I never thought I would be a factory worker,”
he said, explaining that labor shortages in Australia made it easier to find work compared to Indonesia.
Similarly, Viona Maharani, a graduate from a vocational tourism college in Bali, relocated to the United States to intern in the hospitality industry. With experience at several five-star hotels in Bali, Viona sought to advance her career and gain international exposure.
“I will highly value opportunities to keep enriching my experience of working abroad, whether that continues in the United States or another country,”
she shared.
What’s Driving Indonesia’s Brain Drain?
Experts point to several factors fueling the exodus of skilled workers:
- Limited job opportunities: Many graduates struggle to find suitable employment in Indonesia, especially in formal sectors.
- Economic uncertainty: Stagnant wages and a lack of career advancement drive young professionals to look elsewhere.
- Labor market challenges: A shrinking share of formal employment and a rise in informal jobs reflect the country’s inability to absorb its skilled workforce.
- Corruption and investment climate: Widespread corruption and extortion disrupt the business environment, discouraging both local and foreign investment.
According to the International Labour Organization, Indonesia’s youth unemployment rate stood at 13.1% in 2024, higher than in peer countries such as India, Malaysia, Vietnam, the Philippines, and Thailand. A recent survey by Statistics Indonesia reported an even higher youth unemployment rate of 16.16%, more than three times the national average of 4.76%.
Economic and Demographic Risks
The ongoing brain drain poses significant risks to Indonesia’s future. Mohammad Faisal, Executive Director of the Centre of Reform on Economics (CORE) Indonesia, warns that losing top talent could hinder job creation, investment, and technological progress.
“A prolonged brain drain could lead to Indonesia losing its best talent, who would otherwise contribute to job creation at home by helping to attract investment and driving technological progress,”
Faisal explained.
Labor expert Tadjuddin Noer Effendi from Gadjah Mada University expressed skepticism about Indonesia’s “Golden Indonesia” vision, which aims to make the country one of the world’s largest economies by 2045. He cautioned that the emigration of skilled workers could leave critical sectors like health, technology, and education facing labor shortages, and accelerate the country’s demographic transition to an aging population before achieving widespread prosperity—a scenario known as the “demographic paradox.”
Is There a Silver Lining? Remittances and Brain Gain
Despite the challenges, there are potential benefits to the brain drain. Indonesian migrants working abroad often send money home, contributing significantly to the country’s foreign exchange reserves. In 2024, remittance inflows rose 13% to 253 trillion rupiah (about US$15.57 billion), according to the Indonesian Migrant Workers Protection Agency. These funds support families and local economies across Indonesia.
Some experts suggest that the government could turn brain drain into “brain gain” by creating incentives and infrastructure to attract skilled Indonesians back home. Returning professionals bring valuable international experience and knowledge that could drive innovation and economic growth.
“If the government can encourage Indonesians living abroad to return, it will be a huge gain, as they bring valuable experience and knowledge from overseas,”
said Tadjuddin.
What Can Be Done to Stem the Tide?
Academic experts, such as Dr. Hempri Suyatna from Universitas Gadjah Mada, advocate for stronger alignment between education and the job market. Programs like Kampus Merdeka aim to prepare students for employment through internships and entrepreneurship, but challenges remain in ensuring these initiatives translate into real job opportunities. Dr. Suyatna also calls for a comprehensive national strategy to map job demand and align it with graduates’ skills, while addressing issues like nepotism in hiring practices.
Ultimately, experts agree that improving the domestic job market, fostering innovation, and creating a more attractive investment climate are essential to retaining Indonesia’s best and brightest. Without these changes, the country risks losing its demographic advantage and falling short of its economic aspirations.
In Summary
- Indonesia is experiencing a significant brain drain as skilled young professionals seek better opportunities abroad.
- Key drivers include limited job prospects, economic uncertainty, and a challenging labor market at home.
- The trend threatens economic growth, innovation, and the country’s long-term demographic advantage.
- Remittances from overseas workers provide economic benefits, but experts urge policies to encourage skilled Indonesians to return.
- Aligning education with job market needs and improving the investment climate are critical to reversing the brain drain.
