THE PROBLEMS OF ECONOMICS

IN INDONESIA

CHAPTER I
INTRODUCTION
A. Background of the problem
In Indonesia is already familiar if often discussed problem of unemployment.
Unemployment is usually caused by a lack of employment opportunities that exist in
Indonesia either provided by the government and the employers.
View of the Indonesian population that will grow increasingly likely diIndonesia
unemployment increases if the government does not increase the number of jobs.
City terrain is a high unemployment, many scholars who does not have a job so high
after school graduates. In Jakarta, the number of college graduates each year who are ready to
pull out quite a lot. And moreover calculated by the number of secondary schools, the number
of unemployment in the city is very much terrain.
The number of qualified graduates and the limited number of jobs that will be
addressed to make us as students to investigate and try to find a solution of unemployment
that later after we graduated from college with no fear of unemployment. And we also want
to know the reasons that make the growing number of unemployed, especially in Indonesia.

B. Problem Formulation
As described in the background, the formulation of the problem as follows :
1. What is the definition of definition of unemployment?
2. What is the problem of unemployment in Indonesia?
3. What is the state of unemployment in Indonesia?
4. What is the impact of unemployment?

CHAPTER II
ANALYSIS
A. Definition of Unemployment
a. The definition of unemployment is technically everyone in the reference time, is at the
age of the labor force does not work, either in terms of wages or self-employment,
then look for a job, wages or self-employment, then look for a job, having activities
dalamarti active in the job search. In addition to the above there are many definitions
of the term meaning unemployment definitions.
b. Definition of unemployment by Sadono Sukirno.
The unemployment is a situation where a person belonging to the labor force, wanted
to get a job but have not been able to get it.
c. The definition of unemployment by Payman J. Simanjuntak
The unemployment is a person who did not work was the labor force not working at
all or working less than two days during the week prior to enumeration and tried to
get a job.
d. The definition of unemployment by the general term of the center and man power
training.
The unemployment is a person who was not able to get jobs and make money even be
able to do the work.
e. Definition of unemployment by minister
Unemployment is a person who does not work, looking for work, prepare a new
business, and not looking for work because they are not likely to get a job again.

B. Unemployment Issues in Indonesia

Unemployment is a term for people who do not work at all, looking for work,
working less than two days during the week, or someone trying to get a job. Unemployment
is generally caused because the labor force is not proportional to the number of jobs that can
absorb it. Unemployment is often a problem in the economy due to the existence of
unemployment, productivity and incomes will be reduced so as to give rise to poverty and

social problems of unemployment. Can be calculated by comparing the number of

unemployed to the total labor force expressed as a percent.
The lack of revenue caused unemployment should reduce their consumption spending
which causes decreased levels of prosperity and well-being. Prolonged unemployment can
also cause bad psychological effects the unemployed and their families. The unemployment
rate is too high can also cause political turmoil, social security and so interfere with the
growth and economic development.
Long-term result is a decline in GNP and per capita income of a state. In developing
countries such as Indonesia, the technical term is "underemployed" in which the work should
be done with a little labor, performed by more people. Employment issues in Indonesia is
now reaching alarming sufficient condition characterized by the number of unemployed and
underemployed large, relatively low incomes and less prevalent. Instead of unemployment
and underemployment are high is a waste of resources and a waste of potential, a burden on
the family and society, the main source of poverty, can lead to social unrest and increased
crime, and can hinder development in the long run. Conditions of unemployment and
underemployment are high is a waste of resources and potential, become the burden on
families and communities, the main source of poverty, can lead to social unrest and increased
crime, and can hinder development in the long run. Development of Indonesia fore highly
dependent on the quality of human resources in Indonesia are physically and mentally healthy
and have the skills and expertise of the work, so as to build the families to have jobs and
steady and decent income, so as to meet the needs of life, health and education of members
family.
In national development, macroeconomic policy, which is based on synchronization
of fiscal and monetary policy should lead to the creation and expansion of employment
opportunities. Mikrodan effort to cultivate an independent small business needs including
access policy alignments, companion, small business financing and interest rates small
mendukung. Central policy and provincial government policy must be a unity of mutual
support for the creation and expansion of employment opportunities. National Movement
Disaster Unemployment (GNPP), 70 percent of unemployed dominated by young people, it
would require special handling in an integrated program of action and the creation of
employment opportunities specifically for young people by all parties. Based on the above
conditions need to be a national response Unemployment (GNPP) to deploy all the elements

and potential national and regional policies and strategies to develop and implement
prevention programs unemployment. One measure of national and regional policies to be
successful in the expansion of employment or reduction of unemployment and
underemployment.

C. The state Unemployment in Indonesia

Unemployment occurs because among other things, that because the number of jobs
available is smaller than the number of job seekers. Also competencies job seekers do not
match the job market. In addition, the lack of effective labor market information for job
seekers.
The phenomenon of unemployment is also closely related to the termination of
employment, due to among others, the company shut down / reduce its business due to the
economic crisis or unfavorable security; regulations that hinder investment in; obstacles in
the process of import export, BPS etc. According unemployment in 2002, amounting to 9.13
million openly unemployed, about 450 thousand of them are highly educated. When viewed
from the age of the majority of the unemployed (5.78 million) are at a young age (15-24
years). In addition there are 2.7 million unemployed people find it impossible to get a job
(hopeless). A situation like this would be very dangerous and threaten national stability.
Another issue is the number of underemployed are working less than the normal working
hours of 35 hours per week, in 2002 amounted to 28.87 million people. Some of them are
working at a lower position than the level of education, low wages, resulting in low
productivity. Thus the problem of unemployment and underemployed amount to 38 million
people who should be completed. Center for Economic Research Indonesian Institute of
Sciences (P2ELIPI) predicts that this year the number of unemployed will rise to 11.833
million people. This figure does not include labor ex Indonesia (TKI) who returned to the
country from Malaysia and unemployment.

D. Unemployment Causes Poverty

On 17 October, the global community has just celebrated antipoverty entire world.
However, in this country, poverty is a social symbol that was almost absolute and insoluble.
Since the colonial period to the present, though difficult predicate poor countries escape from
the nation's potential content of famous abundant natural wealth. Poverty seemed
increasingly melancholy story complete with the occurrence of various natural disasters and
artificial disasters: earthquakes, tsunamis, Lapindo hot mud, and forest fires that followed

smog. Pockets of poverty in the country were increasingly diffuse malignant bakvirus,
ranging from tier rural, urban cities, the unemployed, to the fishing villages. Regardless of the
debate over the use of indicators, data on poverty in this country continues to demonstrate
deteriorating trend. The number of poor people in Indonesia accounted for 17 percent of the
population has now reached 220 million. According to official data Susenas (CBS, 2006), the
number of poor people increased from 35.10 million (15.97 percent) to 29.05 million (17.75
percent). While the number of unemployed according Sakernas (CBS, 2006) has continued to
increase from 10.9 million people (10.3 percent) in February 2005 to 11.1 million people
(10.4 percent) in February 2006.

CHAPTER III
CONCLUSION
A. Conclusion
1.

Based on the papers that have been compiled by us we can conclude that the
unemployed are the ones who do not get a good job, and if the work is not in
accordance with the level of education as he traveled disguised unemployment

2.

name.
The problem of unemployment is the lack of employment available in

3.

Indonesia.
The state of unemployment in Indonesia is a difficult problem because the
solution gets annually anggkatan amount of work in Indonesia is being added to
both the college level and high school level.
We can conclude that the impact of unemployment is increasing poverty in

4.

Indonesia.

B. Advice
1.
2.

Keep the attention of the government to tackle the problem of unemployment.

Governments need to open a new project either state or as the construction of

3.

roads that can accommodate the workforce.

It's good all the colleges and schools to improve the quality of teaching so that

4.

graduates are able to work inside and outside the country.

Need special attention in order to avoid poverty worse