Abstract
Indonesia's New Order has been notable for steady economic growth, especially in channel ling oil revenues into programmes for food self-sufficiency, population control and, in the 1980s, structural adjustment and economic liberalization in an effort to diversify the economy with export-led industrialization. However, there is a growing problem of labour market imbalance mirroring failure to generate adequate productive employment for a rapidly growing labour force, currently estimated at 2.2 million annually. Starting with the 1993 State Guidelines (GBHN), Indonesian planning and policy are now at a crossroad, shifting from production targets towards employment creation and human resource development as the key thrusts of the Second Perspective Plan (1994-2018) com mencing with Repelita VI (1994-98). This article examines the prospects and constraints relating to Indonesia's employment challenge, in particular by drawing lessons from the experience of Malaysia and Singapore.
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