<b>Active Labor Market Policy in Indonesia: Challenges of the Pre-Employment Card, Wage Subsidy, and Job Loss Insurance Programs</b>

Active Labor Market Policy (ALMP) has become a key instrument in addressing employment challenges in Indonesia, particularly in the aftermath of the COVID-19 pandemic and the enactment of the Omnibus Law on Job Creation in 2020. This study analyzes the implementation, constraints, and impacts of three main ALMP programs—Pre-Employment Card (Kartu Prakerja), Wage Subsidy (BSU), and Job Loss Insurance (JKP)—on worker welfare. Employing a qualitative literature-based approach, data were gathered from academic journals, government reports, and ministerial-level statements. Findings indicate that these programs improved workers' skills and financial stability, though they also faced challenges such as low digital literacy, weak data validity, and suboptimal interagency coordination. The study recommends improved program design, enhanced digital infrastructure, and continuous evaluation to maximize long-term impacts.

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Publication Details

Journal
Jurnal Perencanaan Pembangunan The Indonesian Journal of Development Planning
Published
2025-08-31
DOI
https://doi.org/10.36574/jpp.v9i2.695
Primary Topic
Employment and Welfare Studies
Type
article
Field-Weighted Citation Impact
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article

Active Labor Market Policy in Indonesia: Challenges of the Pre-Employment Card, Wage Subsidy, and Job Loss Insurance Programs

Wike Wike, Andy Fefta Wijaya, Muhyiddin Muhyiddin, Fadillah Putra
Jurnal Perencanaan Pembangunan The Indonesian Journal of Development Planning
Employment and Welfare Studies
article

Active Labor Market Policy in Indonesia: Challenges of the Pre-Employment Card, Wage Subsidy, and Job Loss Insurance Programs

Wike Wike, Andy Fefta Wijaya, Muhyiddin Muhyiddin, Fadillah Putra
article en

Abstract

Active Labor Market Policy (ALMP) has become a key instrument in addressing employment challenges in Indonesia, particularly in the aftermath of the COVID-19 pandemic and the enactment of the Omnibus Law on Job Creation in 2020. This study analyzes the implementation, constraints, and impacts of three main ALMP programs—Pre-Employment Card (Kartu Prakerja), Wage Subsidy (BSU), and Job Loss Insurance (JKP)—on worker welfare. Employing a qualitative literature-based approach, data were gathered from academic journals, government reports, and ministerial-level statements. Findings indicate that these programs improved workers' skills and financial stability, though they also faced challenges such as low digital literacy, weak data validity, and suboptimal interagency coordination. The study recommends improved program design, enhanced digital infrastructure, and continuous evaluation to maximize long-term impacts.

Jurnal Perencanaan Pembangunan The Indonesian Journal of Development PlanningVol. 9(2)
University of Brawijaya (ID), Ministry of Manpower (SG)
Openalex Percentile: Top 63%
Employment and Welfare Studies
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