Indonesian President Prabowo Subianto claims that the national unemployment rate in 2025 has reached its lowest level.
"Alhamdulillah, today the national unemployment rate has successfully dropped to its lowest level since the 1998 crisis," Prabowo said in a speech at the Annual Session of the People's Consultative Assembly (MPR RI) at the Parliament Complex, Senayan, Jakarta, on Friday (August 15, 2025).
If Prabowo's claim is compared with data from the Central Bureau of Statistics (BPS), in 1998 there were approximately 5.04 million unemployed people in Indonesia. This is equivalent to 5.46% of the open unemployment rate (TPT) during that period.
Following this, the unemployment rate fluctuated, reaching its lowest level in February 2025 at 7.28 million people or 4.76%. The highest record since the reform era was in August 2005, with 11.9 million unemployed people or 11.24%.
This unemployment data includes the population aged 15 years and over who meet the following criteria:
- Not working and actively seeking employment;
- Not working and preparing a new business;
- Already accepted for a job/ready to start a business but have not yet started working/doing business; or
- Not working and feeling it is impossible to find a job (discouraged workers).
Prabowo also outlined several government efforts to improve the welfare of Indonesian people.
One of them is through the establishment of the Indonesian Investment Management Agency (Badan Pengelola Investasi Danantara), which is expected to create millions of jobs, particularly in the downstream sector.
"To accelerate investment in natural resources and various strategic sectors to open up quality job opportunities, we, together with the DPR RI (House of Representatives), have formed what we call the Indonesian Investment Management Agency," Prabowo said.
(Baca: 42,000 Indonesian Workers Laid Off in the First Half of 2025: Here's the Trend)