Jakarta (ANTARA) - Indonesia's status as an upper-middle-income country (UMIC) is often seen as a sign of progress—a recognition that the nation's economy is moving up on the global map.
However, beneath that status lies an irony that is hard to ignore. Economic growth, often celebrated through figures and percentages, has yet to fully materialize as tangible prosperity for the majority of the population.
It is only natural that debates regarding the direction of national development emerged, especially as the domestic job market shows signs of fragility in creating jobs for the skilled workforce broadly and sustainably.
The World Bank’s latest report sets the global prosperity threshold for UMICs at US$8.30 per person per day, based on purchasing power parity (PPP). Under this standard, approximately two-thirds of Indonesians still fall below the global prosperity line.
This figure appears to conflict with data from Statistics Indonesia (BPS), which records the national poverty rate at 8.57 percent. Such differences often spark public confusion, as if the statistics are negating one another.
Economist from Binawan University Farouk Abdullah Alwyni explained that the two figures stem from different standards: one measures absolute poverty based on national basic needs, while the other assesses welfare within a global context.
From his perspective, this carries a key message that economic growth has not fully transformed into prosperity that is widely felt by the public.
This fragility is reflected in social class structure. BPS data showed that Indonesia's middle class only makes up around 17 percent of the population.
This figure is still too small to serve as a foundation of long-term economic stability. Historically, development across countries shows that success in escaping the middle-income trap depends heavily on the presence of a large, productive middle class with sufficient purchasing power to sustain growth.
The pillar of democracy
The middle class is more than just a group of consumers. They also serve as the pillar of economic democracy, the drivers of innovation, and the bridge between public policy and market needs.
However, there is an issue linked to the quality of available jobs.
When economic growth relies on concession-based expansion and wealth accumulation concentrated among a few elites, the jobs created are often precarious, low-paying, and offer minimal protection for workers.
Alwyni highlighted that this development model also poses a heavy ecological burden.
For instance, the floods and landslides that hit three provinces of Sumatra in late November 2025 are inseparable from weak land governance and the disregard for environmental sustainability and the rights of local communities.
The social losses that emerge are often higher than the short-term economic benefits.
This condition demands a course correction. The success of development can no longer be measured solely by the growth rates of gross domestic product (GDP); it must also be judged by the state's ability to create decent jobs, expand social safety nets, and ensure people's access to high-quality education and healthcare.
In this context, the labor market becomes a key arena. However, in reality, domestic job absorption, especially for skilled labor, has not yet kept pace with workforce growth and rising educational quality.
Amid the limitations, Alwyni assessed that there is an opportunity that is often overlooked: the integration of Indonesia's skilled workforce into the global market.
Many developed countries are currently facing a shortage of professionals in the health, engineering, technology, and public service sectors.
An aging population, digital transformation, and increasingly complex demands for services are creating opportunities for workers from developing nations to fill these gaps.
For Indonesia, this is not merely a matter of sending workers abroad; it is about positioning human resources as a strategic asset for national development.
Moving forward, these opportunities should be seized through national programs fueled by public-private partnerships.
The focus must not only be directed towards placement, but also on systematic preparation, ranging from language training and international certification to mastering skills that align with global market demands.
With this approach, the mobility of the skilled workforce becomes more than just a temporary practice; it becomes part of a long-term strategy to enhance the quality of human resources.
The impact is not only felt by the individuals who work abroad, but also on increasing the incomes and remittances that can drive the formation of a new middle class in the country.
Remittances invested in education, small businesses, or other productive activities have the potential to create a ripple effect in the local economy.
Knowledge transfer
On a broader scale, in addition to gaining international work experience, workers bring home new knowledge, professional work ethics, and networks that enrich the national economic ecosystem.
In many elderly care facilities in Japan, for example, Indonesian nurses have become a daily fixture.
They do more than just send income back to their hometowns, but also bring home professional standards, work habits, and a new perspective on discipline that gradually influences their families and communities.
Of course, there are also challenges behind this strategy. Protecting labor rights, ensuring the recognition of qualifications, and mitigating the risk of exploitation in destination countries must be primary concerns.
This is where the role of the state is crucial: ensuring that the mobility of skilled labor takes place within a safe and dignified framework that provides real benefits to all parties involved.
Integrated policies across education, labor, and economic diplomacy are essential to ensure that global opportunities do not turn into new vulnerabilities.
The UMIC status should be a turning point, not just a label. Without a growing middle class and significant poverty reduction, growth will remain nothing more than a figure on paper, far from the ideal of social justice.
The integration of a skilled workforce in the global job market offers a route to bridge the gaps between growth and welfare.
The public must begin to view human mobility not as a loss, but as a socio-economic investment that yields results over the long term.
Moving forward, this condition must not only be regarded by how fast the economy is growing, but also where that growth is leading society: whether it can create more equitable opportunities, protect the environment, and realize certainty for the next generations, or end up widening the gap between those at the top and those left behind.
In the increasingly interconnected world, Indonesia's boldness to place its workforce on the global stage will be reflected in the gradual changes felt back home, from how children view education to how communities envision their future.
