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The Demographic Bonus: Why Reducing NEET Matters

Indonesia is on the brink of reaping its demographic bonus, but only if it can effectively engage its youth population. With over 9 million young people still not in education, employment, or training, the NEET issue poses a significant risk to national productivity.

Understanding the NEET Challenge in Indonesia

Despite steady improvement, Indonesia’s NEET rate remains one of the highest among ASEAN countries. This regional context highlights the urgency of accelerated reform and innovation in youth policy.

Graph showing the percentage of Indonesian youth not in education, employment, or training (NEET) from 2018 to 2024, with noted barriers.

Youth with disabilities are disproportionately represented in Indonesia’s NEET population. Structural challenges, from inaccessible learning environments to societal stigma, often leave them behind.

Programs like ‘ADik Disabilitas,’ which provides higher education opportunities for students with disabilities, are a step in the right direction. However, ensuring inclusive growth demands broader reforms: from making schools and workplaces accessible to promoting inclusive hiring practices.

Empowering youth with disabilities isn’t just a matter of equity; it’s a catalyst for innovation and diversity in the workforce. After all, inclusive growth is smart growth of the future.

Read Also: Why Indonesia’s Energy Mix Is Slow to Change

The Economic Benefits of Engaging Youth

With strategic investment and cross-sector collaboration, Indonesia has the potential to not only catch up but lead the region in youth development. Additionally, lowering the NEET rate will increase GDP contributions and reduce future welfare dependency. If managed well, today’s youth could become the engine of tomorrow’s prosperity.

Ayasha Graciella Subagdja | Central Insight

Ayasha is a Business Analyst at Central Insight. Before her role at Central Insight, she was a Business Analyst Intern at a leading marketing consultancy in Indonesia, where she played an active role in various end-to-end research projects within the Government and Public Services sector, utilizing both qualitative and quantitative methodologies. In her current position, she is responsible for gathering relevant data, conducting in-depth analyses, and delivering insightful reports. Ayasha holds a Bachelor of Business Management in International Business from the University of Queensland, where she received recognition for her outstanding academic achievements.

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    Ayasha Graciella Subagdja
    Ayasha Graciella Subagdja
    Ayasha is a Business Analyst at Central Insight. Before her role at Central Insight, she was a Business Analyst Intern at a leading marketing consultancy in Indonesia, where she played an active role in various end-to-end research projects within the Government and Public Services sector, utilizing both qualitative and quantitative methodologies. In her current position, she is responsible for gathering relevant data, conducting in-depth analyses, and delivering insightful reports. Ayasha holds a Bachelor of Business Management in International Business from the University of Queensland, where she received recognition for her outstanding academic achievements.