The Influence of Kartu Prakerja Recipients and Provincial Minimum Wage on Aggregate Employment Absorption in Indonesia During the Demographic Bonus Era

Rama Putri Asia (Universitas Negeri Surabaya)
Aprillia Nilasari (Universitas Negeri Surabaya)

Formosa Journal of Multidisciplinary Research (FJMR)
Vol. 4 No. 4 (2025): April 2025

This study examines the impact of Kartu Prakerja recipients and the minimum wage (UMP) on employment absorption in Indonesia during the demographic bonus era. Using panel data regression with the Random Effect Model, secondary data from BPS, the Ministry of Manpower, and the Ministry of Home Affairs were analyzed. The results indicate that Kartu Prakerja has a positive and significant effect, while UMP has a negative but insignificant effect. Additionally, the productive-age population negatively affects employment absorption. All variables have a significant simultaneous influence. It is recommended to expand the Kartu Prakerja program, balance UMP policies with labor productivity, and prioritize job creation to effectively absorb the productive-age workforce.