There are more than 9 million Gen Z in Indonesia who are NEET, what is the reason?

Indonesia, a country rich in human resources, is now facing new challenges in the world of work. More than 9 million Indonesian youth belonging to Generation Z have NEET status – an abbreviation for Not in Education, Employment, or Training. This phenomenon is not just a statistical figure, but a reflection of various interrelated factors.

What is NETT

NETT, or better known as NEET, is an abbreviation of " Not in Education, Employment, or Training " which means "Not in Education, Employment, or Training". This term is used to describe a group of young people who are not involved in formal education, are not employed, and have not participated in job training. This group is often the focus of social and economic policies because they potentially experience difficulties in transitioning to the labor market and may be at risk of social exclusion.

According to OECD data, NEET includes those who are unemployed or inactive and not engaged in education or training. It can be an important indicator of a country's economic condition and is often associated with problems such as poverty, lack of skills, and other barriers that prevent a person from full participation in society.

Factors That Cause This Situation

Generation Z, which consists of individuals born between the mid-1990s and early 2010s, faces major challenges in finding work in Indonesia. More than 9 million Generation Z in Indonesia face NEET status (Not in Education, Employment, or Training), which means they do not go to school, work, or undergo training. What causes this situation, and how can we solve this problem? Let's explore further.

Education and Career Opportunities

Generation Z in Indonesia faces mandatory schooling regulations for 12 years. However, their chances of completing school are influenced by socio-economic status and gender. The average education of Indonesian youth is 10.78 years, equivalent to the first year of high school. However, the gap is widening between youth living in rural and urban areas, especially those with disabilities.

Views on Work

Generation Z is often stereotyped by previous generations as lacking determination. However, according to a survey, 67% of Generation Z do not mind working longer hours if they receive adequate compensation. Data from the Central Statistics Agency shows that Generation Z works longer than the Millennial Generation. Despite this, 69% of Generation Z value balance between work and personal life.

These aspirations influence the work locations they choose. As many as 36% of Generation Z said they prefer to work from home rather than the office. In terms of stability, 52% of Generation Z believe that working in a multinational company provides more security compared to a domestic company. This view is influenced by the pandemic, where layoffs and job precariousness occurred during the crisis.

Media Consumption and Online Behavior

Although Generation Z is known for its heavy use of social media, 82% of them still watched conventional TV in the past month. After TV, digital publishing is the second choice with 42% usage.

In terms of gender, women (44%) access more digital media than men (40%), so digital media is somewhat dependent on gender. Generation Z relies on mobile devices for digital activities, such as smartphones (99%), laptops and other devices (18%).

Can We Solve This Problem

    To overcome this problem, close cooperation is needed between the government, the business world and educational institutions. The government needs to continue to develop training programs that suit industry needs, as well as provide incentives for companies that are willing to invest in human resource development.

    The business world must also be more proactive in creating inclusive and sustainable employment opportunities, as well as providing opportunities for youth to develop themselves. Meanwhile, educational institutions must continue to innovate in curriculum and teaching methods to produce graduates who are work-ready and competitive.

    Job Creation Law as a Solution?

    The Job Creation Law (UU Ciptaker) is one of the Indonesian government's efforts to reduce unemployment, especially after it soared due to the COVID-19 pandemic. Let's discuss this situation further.

    • The Job Creation Law (UU Ciptaker) is designed to improve the investment climate and create jobs. One of the goals is to facilitate investment and business licensing.
    • Secretary of the Directorate General of Industrial Relations Development and Social Security for Workers (Kemenaker), Surya Lukita Warman, stated that the Job Creation Law aims to create jobs for those who are unemployed. By making licensing easier, it is hoped that more job vacancies will open up.
    • Data from the World Bank shows that the realization of foreign investment in Indonesia will grow by 59.4 percent in 2022. The Job Creation Law has also succeeded in reducing investment barriers by 10 percent according to the Organization for Economic Cooperation and Development (OECD) .
    • Increased investment also has a positive impact on labor absorption. As many as 1.3 million people got new jobs thanks to investment which rose 34 percent to IDR 1,207 trillion.

    Generation Z in Indonesia faces challenges in education, career and job stability. By taking advantage of online learning opportunities and keeping a balance between work and personal life, we can help them overcome NEET status and build a better future

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