ANALYSIS ON THE ROLE OF INDONESIA’S INCLUSIVE GROWTH STRATEGIES TOWARD YOUTH UNEMPLOYMENT IN INDONESIA (2015-2017)

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.