Abstract:
Inclusive growth is one of the prominent concepts in the development strategy. Indonesia,
as one of the states that experienced high growth yet increased inequality also practice
inclusive growth strategies as written in the National Medium-Term Development Plan
(RPJMN) period 2015-2019. This study aims to analyze the role of Indonesian’s strategies
of Inclusive growth in solving the problem of youth unemployment in Indonesia in the
period of 2015-2017. It practices qualitative analysis with the theoretical concept of
inclusive growth and human capital. The study found that inclusive growth strategies
address the problem of youth unemployment through four main clusters: increasing and
stabilizing economic growth in Indonesia, improving health quality, improving access of
education and increasing productivity of Indonesian youth. With steady growth at 5% from
2014 until 2017, the open youth unemployment rate decreased from 14.97 % in 2014 to
14.02% in 2017. While, better access to the fulfilment of basic human capabilities and
practical skill improve the condition and welfare of young people. Yet, some challenges
still remain considering the 5% growth is not yet enough to create enough jobs for young
people proven by the increasing average of the open youth unemployment rate from 2015
until 2017 compared to the three previous years. The result of this study contributes to the
relevancy of inclusive growth as development strategy as it is really achieving change.
