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As an economist, how would you approach understanding and explaining this situation?

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As an economist, how would you approach understanding and explaining this situation?

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In your response, follow the economics method by:

Observation: Identify the key facts and trends in the situation.

Assumptions: State the assumptions you would make when analyzing it (e.g., ceteris paribus).

Model/Theory Application: Explain which economic model(s) or theory could help explain the price surge.

Positive vs. Normative Analysis: Give one positive statement and one normative statement related to the situation.

Policy Suggestion: Suggest one possible policy action and justify it based on economic reasoning.

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1. Observation

The #KaburAjaDulu is a trend for people that go out of the country to work. They go because of the salary, more job opportunities and better living condition.

2. Assumptions

Jobs and salaries in other countries will stay better than in Indonesia.

People leave mainly because of money, career, and safety.

Other things like currency value and visa rules stay the same.

3. Model/Theory
Brain Drain — when smart and skilled workers leave their country to work in another country. This can hurt the home country’s economy.

4. Positive Statement (Fact)
Many skilled workers from Indonesia are moving to other countries, so Indonesia has fewer skilled workers.

5. Normative Statement (Opinion)
The government should make better jobs and higher salaries so skilled workers want to stay in Indonesia.

6. Policy Suggestion
Raise salaries for skilled workers, give good training programs, and make workplaces in Indonesia better so people want to work here.

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1. A protest to showcase the young people's voice on how they cannot get a job in the Indonesian economy, compared to other countries where it is very easy to get a job after graduating from university.

2. I assume that the lack of government investments on creating new jobs in the economy has created a new trend of people going to other countries to get better jobs with higher wages and salaries.

3. Brain drain is thoroughly explained and showcased through this issue, as many students who are really well educated decide to leave Indonesia and move to another country.

4. 4.76% of Indonesians are unemployed. and the minimum wage in Indonesia is only Rp 5.400.000 per month, with unequal distribution in a lot of areas.

5. The government should have much more initiative on the education sector and the job sector.

6. Standardize high-quality jobs in different cities.

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Observation: Many young Indonesians are expressing their frustration regarding the limited domestic job opportunities, low salaries, and rising living costs, leading to the #KaburAjaDulu movement to seek education and job opportunities abroad.

Assumptions: The competition for opportunities to work/study abroad will become more competitive as demand increases.

Model/Theory Application: Brain drain, as the younger generation is losing interest in pursuing their career domestically in Indonesia and is leaning towards building a career abroad, which would lead to a decrease in skilled graduates within Indoneisa.

Positive Statement: Local job opportunities are becoming more difficult, with fewer benefits, and wages that can't keep up with the rising living costs.

Normative Statement: The government should create more job opportunities with improved qualities to keep up with the increasing demand and necessary needs.

Policy Suggestion: The government should provide subsidies to help ease the rising living costs and spend more on national development to create more opportunities for employment.

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Observations: Complaints are being made by young people in Indonesia/those within the productive age, about limited job opportunities, low salaries, and increasing living costs. This creates the threat of brain drain.

Assumptions: all factors remain the same (ceteris paribus) except the changes made to Indonesia's economy.

Model/Theory: Brain drain plays a significant part in this issue, as the young population in Indonesia threatens to leave the nation to work in another country. This will negatively impact Indonesia's development, economic situation, and economic competitiveness.

Positive Statement: The loss of talented workers will significantly hinder Indonesia's development, economic growth, and global impact.

Normative Statement: The government should reduce bureaucratic steps for starting a business and reduce startup costs. Alternatively, the government could reduce interest rates to encourage the population to take out more loans. The minimum wage should be increased, or tax rates should be reduced. This will address the issue of low salaries and high living costs.

Policy Suggestion: One action the government can take to de-escalate the situation is to reduce the tax rates. This will allow for more disposable income, addressing the issue of rising living costs. This may also encourage business expansion and business creation, which can create more job opportunities.

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Observation: #Kaburajadulu is an internet expression made popular by Indonesian young adults on social media, expressing their struggle to find jobs. This is due to the limited local job opportunities in recent times.

Assumptions: Regarding Indonesia, I think that its workforce and economic development would be significantly affected due to more and more people leaving the country because of #Kaburajadulu, resulting in economic struggles. In the context of ceteris paribus, I assume the following factors will stay the same: travel costs and visa rules, more and more workers emigrating, and more graduates will seek out jobs abroad.

Model/Theory: Supply & Demand concept. With more and more Indonesian students graduating and seeking out jobs abroad, first of all, there will be a higher demand for jobs outside of Indonesia by these Indonesian graduates; migration-related services (such as plane tickets and housing) will be affected. In this case, the demand is the job and accommodation for working abroad, and the supply is the migration-related services.

Positive Statement: Because of the #Kaburajadulu movement, Indonesia’s economic development and employment rates would decrease significantly. This is the result of the large number of graduates of the recent generation leaving to work in other countries, leaving fewer of the population to be actually employed

Normative Statement: The government should provide higher-quality jobs and better job opportunities for Indonesian graduates to stay and work local jobs to keep the employment rate and economic growth rates from dropping

Policy Suggestion: Government-funded internship programs for graduates should have a specific experience standard for companies. This means that all of the experience from this program should be highly valuable to local employers, giving graduates the experience needed to have a good job. This is because these internship programs are designed to be specifically for work in Indonesia, making their experience a lot more valuable to local companies. Additionally, these internship programs provide them with more job experience, skills, and networking opportunities to be able to work locally.

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Observation: The hashtag #KaburAjaDulu is a popular movement among Indonesian youth. It is a "protest movement" that aims to show dissatisfaction with the country's political, social, and economic conditions, especially related to the budget cut in education and high levels of unemployment. These factors cause many youths to migrate abroad for better opportunities, potentially causing a brain drain.

It can be assumed that without any government intervention, this trend will continue as global education and job opportunities remain accessible.

Model/Theory application: Brain drain is a highly evident concept that is showcased in this issue. This occurs when there is a surplus of skilled graduates/workers relative to the number of high-paying, good-quality jobs. Indonesia has a brain drain index of 5.4, slightly higher than the global average of 4.5.

This also relates to the wage differentials concept, which describes the disparity in wages for workers doing similar jobs due to factors like job risk, location, or market conditions. This highly relates to the #KaburAjaDulu case as this is one of the driving factors for this continuous emigration.

Positive statement: An increasing number of Indonesians from the productive age group are showing a great, united desire to leave the country in search of better work and life opportunities abroad.

Normative statement: The government should prioritize and allocate more fund on the education and employment sector to prevent a 'brain drain'.

Policy suggestion: The government should allocate funds to promote investment in high-skill, more modern industries such as technology, biotech, finance, etc, to let workers thrive. This would increase job opportunities and employment levels. This also includes improving compensation and benefits, including salaries and professional development funding. This would attract youths and enhance Indonesia's "pull factors".

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Observation: #KaburAjaDulu is an Indonesian youth led movement to showcase dissatisfaction towards the national economic, political, and social conditions. Due to these factors, the productive population are opting to continue their education and work abroad due to the more ‘attractive’ incentives and opportunities. A "brain drain

In the long term, it can be assumed that, without significant government intervention, Indonesia’s economic development and labor force would be negatively affected. Also, this migration trend will continue, as the opportunities to study and work abroad remain open.

The wage differentials concept is a highly evident one in this case. This concept describes the disparity of wages for workers doing the same jobs due to factors such as location, nature of job, and labor market conditions. This can be seen by the difference in compensation between workers in Indonesia and Singapore, where the average after-tax salary is enough to cover living expenses for 0.6 months in Indonesia compared to 1.4 months in Singapore.

The ‘brain drain’ concept is another than showcased in this case. This refers to the surplus of skilled workers relative to the amount of available job opportunities. Indonesia has a brain drain index of 5.4 points compared to the world average of 4.98 index points.

Positive statement: In 2025, Indonesia’s unemployment rate is up to 4.76%, ranking amongst one of the countries with the highest unemployment rates in Southeast Asia.

Normative statement: More government spending should be allocated to improving job conditions and opportunities.

Policy Suggestion: To reverse this ‘brain drain’, the government should create policies that improve the ‘pull factors’ to prevent local graduates from leaving the country. The majority of Indonesian emigrants leave due to unsatisfactory working conditions and unrealistic job opportunities, especially in high-tech industries. To solve this, the government invests in enhancing technology, biotech and finance (booming industries).This would open up job opportunities and increase employment levels.

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Observation: #KaburAjaDulu is an Indonesian youth led movement to showcase dissatisfaction towards the national economic, political, and social conditions. Due to these factors, the productive population are opting to continue their education and work abroad due to the more ‘attractive’ incentives and opportunities. A "brain drain

In the long term, it can be assumed that, without significant government intervention, Indonesia’s economic development and labor force would be negatively affected. Also, this migration trend will continue, as the opportunities to study and work abroad remain open.

The wage differentials concept is a highly evident one in this case. This concept describes the disparity of wages for workers doing the same jobs due to factors such as location, nature of job, and labor market conditions. This can be seen by the difference in compensation between workers in Indonesia and Singapore, where the average after-tax salary is enough to cover living expenses for 0.6 months in Indonesia compared to 1.4 months in Singapore.

The ‘brain drain’ concept is another than showcased in this case. This refers to the surplus of skilled workers relative to the amount of available job opportunities. Indonesia has a brain drain index of 5.4 points compared to the world average of 4.98 index points.

Positive statement: In 2025, Indonesia’s unemployment rate is up to 4.76%, ranking amongst one of the countries with the highest unemployment rates in Southeast Asia.

Normative statement: More government spending should be allocated to improving job conditions and opportunities.

Policy Suggestion: To reverse this ‘brain drain’, the government should create policies that improve the ‘pull factors’ to prevent local graduates from leaving the country. The majority of Indonesian emigrants leave due to unsatisfactory working conditions and unrealistic job opportunities, especially in high-tech industries. To solve this, the government invests in enhancing technology, biotech and finance (booming industries).This would open up job opportunities and increase employment levels.

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1. Observation
Lots of young Indonesians want to work or study abroad because local jobs are limited, salaries are low, and living costs keep going up.

2. Assumptions
I’m assuming that overseas job markets stay open, foreign universities accept Indonesian students, and visa rules don’t suddenly change.

3. Model/Theory
This is an example of brain drain — when skilled and educated people leave their home country for better opportunities.

4. Positive Statement
More young people are choosing to leave Indonesia for better pay and career growth.

5. Normative Statement
Indonesia should create more quality jobs and raise salaries so talented people don’t feel the need to leave.

6. Policy Suggestion
The government could offer better pay, career programs, and support for young professionals to make staying in Indonesia more attractive.

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1. Observation
Lots of young Indonesians want to work or study abroad because local jobs are limited, salaries are low, and living costs keep going up.

2. Assumptions
I’m assuming that overseas job markets stay open, foreign universities accept Indonesian students, and visa rules don’t suddenly change.

3. Model/Theory
This is an example of brain drain when skilled and educated people leave their home country for better opportunities.

4. Positive Statement
More young people are choosing to leave Indonesia for better pay and career growth.

5. Normative Statement
Indonesia should create more quality jobs and raise salaries so talented people don’t feel the need to leave.

6. Policy Suggestion
The government could offer better pay, career programs, and support for young professionals to make staying in Indonesia more attractive.

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Observation: The #kaburajadulu trend originated among young Indonesians to express a desire to leave the country, possibly due to dissatisfaction with the country's economic, political or social conditions.

Assumption: Despite minimal wage being at a 6.15% increase, I assume people were upset about the lack of job creation done by the government, leading to more people moving to other nations to get jobs that have higher pay.

Model/Theory: The leading concept in this case would be "Brain Drain". This refers to a large excess of workers in comparison to the available jobs in Indonesia. According to the brain drain index, Indonesia proves to have a larger amount of brain drain than the world's average.

Positive Statement: Due to the happening of #kaburajadulu, Indonesia has reached an all time high of unemployment, leading to a severe slowing of Indonesia's economic development.

Normative Statement: The government should allocate increased funding to job creation and increase salaries towards skilled workers to deter the large rate of workers leaving to other countries.

Policy Suggestion: The government should invest in technological development centering around booming industries, such as biotechnology, finance and overall technology. This would lead to local graduates being more attracted to working in Indonesia rather than moving to other countries for work.

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1. Observation

Many young Indonesians are thinking about working in other countries because jobs in Indonesia can be hard to find. They are interested in higher pay, better career growth, a nicer quality of life, and safer places abroad. But there are also problems like expensive living costs, different cultures, and being far from family.

2. Assumptions

Jobs in other countries will still be open for Indonesians.

Money value and economy in those countries will stay stable.

Skills learned abroad can be useful in Indonesia later.

People have enough money and preparation to move abroad.

3. Model/Theory

This can be explained by the idea of brain drain — when skilled people leave their country for better chances abroad. It also connects to opportunity cost, because people compare the benefits of working abroad (more money, career growth) with the downsides (away from family, higher living costs).

4. Positive Statement

Many Indonesians working abroad get more pay compared to the same jobs in Indonesia, especially in areas like technology, finance, and healthcare.

5. Normative Statement

The Indonesian government should make more good job chances in the country so young people will want to work here instead of leaving.

6. Policy Suggestion

The government can grow high-paying industries in Indonesia (like technology, healthcare, and finance) and give training programs to improve skills, so people can find good jobs without going abroad.

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1. Observation: The #kaburajadulu trend emerged due to a large population of young Indonesians being unsatisfied with the governments grasp on the nation's economic state.

2. Assumptions: Despite the minimum wage(UMP) being at a 6.5% increase, people are still upset with the government. I assume this is due to the severe lack of job creations by the government, leading to people being attracted to moving to other countries for work.

3. Model/Theory: The prominent concept that is present in this situation would be "Brain Drain". This refers to the large excess of skilled workers in comparison to the available jobs. According to the Brain Drain Index, Indonesia scores above average in comparison to the world's average.

4. Positive Statement: Due to the happening of #kaburajaduju, a large amount of graduates have been leaving the country to work elsewhere. Resulting in a severe slowing of Indonesia's economic development.

5. Normative Statement: The government should allocate more funding towards job creation and working conditions.

6. Policy Suggestion: In order to deter/reduce the effect of "brain drain", the government should invest more funding into booming industries, such as biotechnology, artificial intelligence and aerospace industries. This will lead to a large amount of local graduates being attracted to work in Indonesia rather than moving away to another country.