Indonesia uses a populist economic system, so all economic activities related to the livelihood of the people are regulated and controlled by the government. All matters relating to the policies and the survival of Indonesian society are governed by government policies and regulations.
Signs of the economy began to decline beginning in 1997 where at that time there was a crisis. At that time Indonesia's economic growth only ranged at 4.7 percent level, very low compared to the previous year which was 7.8 percent. Unsuccessful security conditions also affect the investment climate in Indonesia, which adds difficulties in this country.
This is closely related to the activity of economic activity that affects the state revenue and economic growth. An increase in economic growth is expected to promise hope for improved economic conditions in the future.
For Indonesia, with increasing economic growth hence hope of increasing of national income (GNP), income of capita competition will increase, inflation rate can be suppressed, interest rate will be at reasonable level and more passionate capital for domestic and abroad.
But all that can be realized if the security conditions in the country really been conducive. The current government policy in combating terrorism, as well as the eradication of corruption, has helped the economic recovery. Economic growth which is one of the macroeconomic indicators describes the economic performance of a country will be a top priority if it wants to show to others that economic activity is going well with the country.
For three years from 2005, 2006, and 2007 the Indonesian economy grew significantly (above 6% average), making Indonesia currently economically under consideration by the world economy. This can be seen with the invitation of Indonesia to the 8-plus (G8plus) group meeting in Kyoto Japan in July 2008 with several countries called BRIICS (Brazil, Russia, India, Indonesia and South Africa).
In 2008, Indonesia's per capita income has already exceeded US $ 2,000, even in 2009, Indonesia's GDP was set above the 5,000 trillion Rupiah equivalent of US $ 555 billion. These figures adequately support the estimate that by 2015 Indonesia has become one of the world's economic giants with GDP above US $ 1 trillion. But there are still many obstacles faced by the Indonesian economy to get there, for example; the condition of economic infrastructure (such as roads, bridges, ports and electricity), high unemployment rate (9% range), high inflation caused by rising world energy prices (already touched 11 ,,%), not optimal FDI arrival to Indonesia, the role of the state budget as an economic stimulus (not expansive).
Of the many economic problems that can achieve government targets can be classified into the most fundamental problem because of the widespread impact of the problems of employment that covers the high number of unemployment and high inflation rate that occurred in Indonesia is the underlying all social problems in Indonesia.
Unemployment
Unemployment or joblessness is a term for people who do not work at all, looking for work, working less than two days a week, or someone trying to get a decent job.
Unemployment is a major problem that must be faced by the Indonesian economy. There are several causes of high unemployment such as unequal numbers of workers and unavailable jobs, and unsuitable manpower available to the specifications employers are looking for. Another cause is insufficient education with the required standard.
Types of Unemployment:
- Based on working hours:
Unemployed Unemployment: Unemployment here is a collection of human resources that do not work optimally cause for some reason.
Half Unemployed: The human resources here are not working due to unavailability of employment.
Open unemployment: HR here is a workforce with no job at all.
- Based on the causes of occurrence:
Fringe Unemployment: The human resources here are unemployed because they choose to be unemployed because they are waiting for more quality work or are more suited to them.
Structural Unemployment: Human resources here dismissed by the company because the company has gone bankrupt or decline.
Unemployment Technology: HR here dismissed company or not recruited because the company no longer needs energy, because the work has been taken over by the machine ka