Indonesia Plans to Send 100,000 Workers to Japan

JAPAN -  JAKARTA. Indonesia plans to send 100,000 workers to Japan over the next five years, helping Tokyo reduce its labor shortage as the population ages in the world's third-largest economy.

The Indonesian Ministry of Labor and the Japan International Cooperation Agency (JICA) held their first joint human resources forum in Jakarta on November 28, 2023, attended by more than 200 people including Indonesian government officials and representatives from Japanese industries ranging from automotive to tourism and nursing.

“Indonesia is entering a demographic bonus period,” said Minister of Labor Ida Fauziyah at the event as quoted from Nikkei Asia, Saturday (16/12).

“Our challenge is how to provide job opportunities for many people, especially those of working age between 15 and 64 years old, and prevent increasing unemployment,” added Ida.

She added, Japan is a highly sought-after destination for Indonesians, especially the younger generation.

Another Ministry of Labor official said in the forum that Indonesia aims to send 100,000 skilled workers to Japan in the next five years.

As part of this effort, the Ministry of Labor hopes 70,000 workers will travel using Japan's Special Skilled Worker visa program, which allows a stay of up to five years. They estimate another 30,000 people will work under different programs.

Both countries also agreed to build a platform to exchange labor-related information between the public and private sectors, and offer Japanese language skills and training for Indonesians. This includes revising teaching materials in Indonesian schools that are considered to have great potential to send workers to Japan.

With a population of more than 270 million people, Indonesia is the fourth most populous country in the world and has long sought to send workers to countries such as the Middle East, Hong Kong, and South Korea to increase foreign currency income and reduce domestic unemployment.

Unemployment among Indonesians aged between 15 and 24 reached 13% in 2022 despite annual economic growth stable around 5%.

Conversely, the working-age population in Japan is declining, threatening a labor shortage. The country will need about 6.7 million foreign workers by 2040, about four times more than currently, according to a JICA study.

“With the active role of Indonesian human resources in Japanese society, social problems in both countries can be overcome,” said Kenji Kanasugi, who is the Japanese ambassador.

Takazumi Yamaguchi, managing director of a hotel operator in Fukui Prefecture, Japan, said his company, Grandia Housen, faces a serious labor shortage that he hopes can be overcome by employing Indonesian talents. 

He said such staff tend to be flexible and can perform many tasks in places like traditional ryokan inns.

According to data from the Japanese Ministry of Labor, the country had about 1.82 million foreign workers in October 2022, of which 77,889 were Indonesians – the sixth largest group after workers from Vietnam, China, the Philippines, Brazil, and Nepal.