Indonesia’s Brain Drain: Young Talent Seeks Opportunities Abroad

In a bustling hall at Airlangga University in Surabaya, hundreds of young Indonesians filled out job applications at a fair on April 29, 2025, hoping to secure a foothold in an increasingly competitive market. Yet, for many like Fikri Haikal, a 25-year-old political science graduate, the search for meaningful employment at home has proven futile. Instead, Fikri now works in a poultry factory in Australia under a working holiday visa (WHV), a path increasingly taken by Indonesia’s skilled youth in what experts describe as a growing brain drain threatening the country’s economic future.

The Exodus of Talent

Indonesia, Southeast Asia’s largest economy, is witnessing a surge in young, educated professionals seeking opportunities abroad. The numbers are stark: according to the Australian Department of Home Affairs, the number of Indonesians granted WHV surged from 2,984 in the 2022-2023 period to 4,285 in 2023-2024, making them the largest citizenship group in the program. Social media platforms buzz with hashtags like #KaburAjaDulu (Just Get Out First), reflecting widespread frustration over limited job prospects and economic conditions at home.

Fikri’s story encapsulates this trend. After failing to secure a scholarship for higher education abroad, peer influence led him to the WHV program. “I never thought I would be a factory worker” he told The Jakarta Post on May 23, 2025, highlighting the ease of finding work in Australia due to labor shortages in sectors like manufacturing. While the blue-collar job offers a salary that exceeds his living costs, it also provides access to public facilities and a diverse cultural experience—benefits he struggled to find in Indonesia.

Across the globe, others like Viona Maharani, a vocational tourism graduate from Bali, are chasing similar dreams. After working casually at five-star hotels in Bali, Viona relocated to the United States for an internship in hospitality. “I will highly value opportunities to keep enriching my experience of working abroad, whether that will continue to be in the US or another country” she shared with The Jakarta Post on June 9, 2025. Her decision, influenced by peers who highlighted better income and skill development prospects abroad, underscores a broader sentiment among Indonesia’s youth: the future lies beyond national borders.

A Demographic Paradox

Experts warn that this brain drain—defined as the large-scale emigration of highly educated and skilled professionals—poses significant risks to Indonesia’s long-term economic growth. Mohammad Faisal, executive director of the Center of Reform on Economics (CORE) Indonesia, cautions that a prolonged exodus of talent could hinder job creation at home. “Skilled workers attract investment and drive technological progress” Faisal explained in a recent report. Without them, the country risks losing its competitive edge.

The statistics paint a troubling picture. A recent CORE report notes that Indonesia lags behind other Southeast Asian nations in youth employment for those aged 15 to 24. The International Labour Organization estimated Indonesia’s youth unemployment rate at 13.1 percent in 2023, higher than in peer countries like Malaysia, Vietnam, and Thailand. A biannual survey by Statistics Indonesia (BPS) released in early June 2025 pegged the figure even higher at 16.16 percent—more than three times the national unemployment rate of 4.76 percent.

This stagnating employment landscape reflects a failure to capitalize on Indonesia’s demographic dividend, the economic boost expected from a young, productive population. Instead, as the CORE report warns, the country faces a “demographic paradox”—the risk of “getting old before getting rich” as its best talent departs.

Underlying Causes and Economic Impacts

Labor experts point to systemic issues driving this emigration. Tadjuddin Noer Effendi, a labor specialist at Gadjah Mada University, attributes the brain drain to labor market uncertainty, a lack of job opportunities, and a surge in layoffs in 2025. He also cites broader structural challenges, including widespread corruption and extortion, which disrupt the investment climate and deter job creation. “The brain drain can slow down innovation and hinder technological development, which ultimately affects economic competitiveness” Tadjuddin told The Jakarta Post on May 22, 2025.

The consequences could be severe. Key sectors such as health, technology, and education may face labor shortages if skilled workers continue to leave. Moreover, an aging population left behind by the emigration of young, productive individuals could strain social systems and reduce economic dynamism. Tadjuddin expressed skepticism about Indonesia’s “Golden Indonesia” vision—a plan to transform the nation into one of the world’s largest economies by 2045—arguing that losing talent undermines the innovation needed to achieve such ambitions.

Beyond immediate economic impacts, the brain drain exacerbates the divide between formal and informal employment. Faisal notes that the shrinking share of formal jobs means Indonesia’s skilled workforce is not being optimally absorbed, pushing many into precarious, low-paying informal roles or, increasingly, out of the country altogether.

A Silver Lining: From Brain Drain to Brain Gain?

Despite these challenges, some see potential benefits in the outflow of talent. Tadjuddin highlights that Indonesian migrants are often “heroes of foreign exchange,” contributing to the national economy through remittances. According to the Indonesian Migrant Workers Protection Agency (BP2MI), remittance inflows rose by 13 percent to Rp 253 trillion (US$15.57 billion) in 2024, a significant boost to foreign exchange reserves. For individuals like Fikri, working abroad offers financial stability that can support families back home, indirectly fueling local economies.

Moreover, Tadjuddin suggests that the government could turn the brain drain into a “brain gain” by creating conditions to attract returning talent. “In the future, if the government can invite Indonesians living abroad back to Indonesia, it will be a huge gain, because they have plenty of experience and knowledge from abroad” he said. This would require investment in innovation infrastructure, better job opportunities, and policies to retain skilled workers—steps that have so far been lacking.

Some policymakers appear unperturbed by the trend. Indonesia’s Manpower Minister has publicly stated there is “no problem” with citizens seeking better jobs abroad, framing it as a personal choice rather than a systemic failure. Yet, without proactive measures, the loss of human capital could undermine the very demographic advantage Indonesia hopes to leverage.

Global Context and Regional Competition

Indonesia’s brain drain is not an isolated phenomenon. Across Southeast Asia, countries grapple with similar challenges as globalization and digital connectivity make international opportunities more accessible to young professionals. Nations like the Philippines have long experienced significant emigration of skilled workers, particularly in healthcare, while also benefiting from substantial remittance inflows. However, Indonesia’s higher youth unemployment rate compared to regional peers like Malaysia and Vietnam suggests deeper structural issues that must be addressed to remain competitive.

Australia’s WHV program, in particular, has become a magnet for Indonesian youth, offering a relatively accessible pathway to work abroad. Social media posts from graduates and young professionals often highlight better pay and quality of life, though some caution that the experience “is not as easy as it looks.” The allure of such programs underscores the need for Indonesia to create comparable opportunities at home, whether through vocational training, public-private partnerships, or incentives for entrepreneurship.

Looking Ahead: Policy Challenges and Opportunities

As Indonesia navigates this brain drain, the government faces a dual challenge: stemming the outflow of talent while harnessing the potential benefits of a globally experienced workforce. Addressing youth unemployment will require more than rhetoric about economic visions; it demands concrete reforms to education, labor markets, and governance. Investments in technology and innovation could create the high-skill jobs needed to retain graduates, while anti-corruption measures might rebuild trust in the investment climate.

For now, stories like those of Fikri and Viona reflect both the aspirations and frustrations of a generation. Their journeys abroad highlight the urgent need for systemic change at home. As more young Indonesians pack their bags in search of brighter futures, the question looms: can Indonesia transform its demographic dividend into sustainable growth, or will it lose its brightest minds to the world?