Indonesia’s brain drain worsens as young talent seeks better futures abroad

Indonesia is grappling with an accelerating brain drain, as a growing number of young, educated citizens migrate abroad in search of better job opportunities and quality of life. Amid a sluggish domestic labour market and rising pessimism among the youth, this trend is raising concerns among economists and policymakers about its long-term implications for the country’s development.

The Jakarta Post explained this with the example of 25-year-old Fikri Haikal, a political science graduate who left Indonesia on a working holiday visa (WHV) to Australia. Despite aspirations to pursue higher education overseas, Fikri settled for a job at a poultry factory after failing to secure a scholarship.

“I never thought I would be a factory worker,” he said, adding that job prospects in Indonesia were dismal. “In Australia, securing a job is easy because there is a shortage of labour in sectors like manufacturing,” he toldThe Jakarta Post on May 23.

The WHV programme is increasingly popular among Indonesians, with visa approvals rising sharply from 2,984 in 2022–2023 to 4,285 in 2023–2024, according to the Australian Department of Home Affairs.

On social media, hashtags like #KaburAjaDulu (Just get out first) have gained traction in 2025, as more graduates share stories of better pay and working conditions abroad, though some caution that life overseas comes with its own set of challenges.

Youth unemployment and policy gaps

Indonesia’s inability to absorb its growing skilled labour force is seen as a key driver of the brain drain. A report by the Centre of Reform on Economics (Core) Indonesia reveals that formal employment opportunities are shrinking, even as the country struggles with one of the highest youth unemployment rates in Southeast Asia.

In 2024, youth unemployment stood at 13.1 per cent, according to the International Labour Organization (ILO). More alarmingly, a June 2025 survey by Statistics Indonesia showed an even higher youth jobless rate of 16.16 per cent, more than triple the national average of 4.76%.

“The country’s demographic dividend is at risk of becoming a demographic paradox — getting old before getting rich,” Core executive director Mohammad Faisal toldThe Jakarta Post. “If our best talent continues to leave, we will miss out on innovation, technology development, and investment opportunities.”

Labour expert Dr Tadjuddin Noer Effendi from Gadjah Mada University echoed the warning, expressing doubt about Indonesia’s 2045 “Golden Indonesia” vision of becoming one of the world’s top economies.

According to the report byThe Jakarta Post, he attributed the brain drain to a lack of job security, widespread layoffs in 2025, corruption, and extortion that undermine the investment climate.

“There is a real risk of brain drain causing shortages in crucial sectors like health, education, and technology,” he said. “As more young professionals leave, we are left with an ageing workforce.”

From brain drain to brain gain?

Not all consequences of this talent exodus are negative. Experts point out that Indonesian workers abroad significantly boost the nation’s foreign exchange earnings through remittances.

In 2024, remittance inflows rose 13 per cent to 253 trillion rupiah ($20 billion), according to the Indonesian Migrant Workers Protection Agency.

“Migrants are often heroes of foreign exchange,” said Dr Tadjuddin. “But remittances can’t compensate for the long-term developmental losses if we continue to lose skilled workers.”

Singapore has also emerged as a top destination, with 3,912 Indonesians switching to Singaporean citizenship from 2019 to 2022, most aged between 25 and 35. “This shows that Singapore is perceived as a more attractive place to build a career and access quality education,” Dr Hempri Suyatna, a social welfare expert at Universitas Gadjah Mada, said in a report by Universitas Gadjah Mada.

He stressed the importance of strengthening programmes like Kampus Merdeka, launched under former Education Minister Nadiem Makarim, which aim to equip students with real-world skills through internships and entrepreneurial training.

However, he noted that implementation gaps remain, particularly in post-program mentoring. He also emphasised the urgent need for a national blueprint aligning education with labour market demands. “A grand design for population and job market development is crucial,” he said. “But even with such a design, the system won’t work if recruitment still favours personal connections over merit.”

As Indonesia stands at a crossroads, the decision to address its brain drain crisis now will determine whether it can harness its youth as an asset or watch them thrive elsewhere.