Government Prepares Rp 1.06 Trillion for Minimum-Wage-Paid Internship Program in 2026

The government has allocated Rp 1.06 trillion in 2026 for an internship program that offers compensation equivalent to the regional minimum wage (UMK) for university graduates. This initiative is part of a total allocation of Rp 1.37 trillion for the 2025–2026 period, with Rp 300 billion already set aside for the initial phase in 2025.

The internship duration in its first year (2025) is estimated at 2.5 months and will be extended to around 3.5 months in 2026. Each participant is projected to receive an allowance equivalent to the local UMK (averaging around Rp 3.8 million per month), and the program targets up to approximately 100,000 participants.

The main objectives of this program include providing work experience for fresh graduates, boosting public consumption through improved purchasing power, and strengthening the link between the education sector and the formal labor market as part of the national economic recovery.