The #KaburAjaDulu trend has recently emerged in Indonesia, representing the growing sentiment among Indonesians to leave the country in search of better opportunities abroad.
Whether driven by economic concerns, career aspirations, or dissatisfaction with local conditions, this trend has significant implications for domestic businesses and industries.
Thus, what are the factors behind this movement and how does it affect Indonesia’s economic landscape?
Declining Workforce and Talent Drain
One of the most concerning effects of #KaburAjaDulu is the potential brain drain, as skilled professionals and young talent seek better prospects overseas. This results in:
- Shortages in Key Industries: Sectors like technology, healthcare, and engineering face difficulties in retaining skilled workers.
- Increased Recruitment Costs: Companies must invest more in hiring and retaining talent, often offering higher salaries and better incentives.
- Reduced Innovation and Growth: The loss of skilled professionals can hinder business expansion and innovation, slowing economic progress.
- Weakened Economic Productivity: A shrinking talent pool can lead to reduced output and efficiency across multiple industries.
- Strain on Public Services: A decline in local expertise can impact the quality of essential services, including healthcare and education.
Impact on Local Businesses and Consumer Spending
As more people aspire to leave Indonesia, spending patterns within the country are shifting. This includes:
- Lower Domestic Consumption: Individuals saving for migration tend to reduce discretionary spending on entertainment, retail, and dining.
- Declining Demand for Luxury Goods: High-end products and lifestyle businesses may see reduced customer interest as people prioritize financial stability.
- Struggles for Small Businesses: Entrepreneurs relying on a stable local market may face declining sales and need to adapt to changing consumer behaviors.
- Changing Investment Patterns: More people are choosing to invest in skills and qualifications needed for migration rather than in local assets or businesses.
- Effects on the Gig Economy: With fewer young professionals available for freelance work, the growing gig economy might experience slowdowns in growth and availability of skilled labor.
Challenges for the Housing and Real Estate Sector
With the increasing desire to leave the country, real estate and housing markets are also feeling the effects:
- Lower Property Demand: Individuals hesitant to invest in long-term housing may opt to rent instead of buy.
- Potential Decline in Property Prices: Reduced demand for homeownership may affect market stability and real estate investment returns.
- Opportunities for Rental and Co-Living Spaces: A shift toward short-term rentals could benefit landlords who cater to temporary housing solutions.
- Reduced Mortgage Loan Applications: Financial institutions may see a decline in home loan applications as people choose to save money for migration instead.
- Urban Development Slowdown: As demand for property decreases, urban expansion projects and infrastructure investments might be re-evaluated or postponed.
Business Adaptation Strategies
While #KaburAjaDulu presents challenges, businesses can take steps to mitigate its impact:
- Enhancing Employee Retention: Companies must offer competitive salaries, career growth opportunities, and a positive work culture to retain talent.
- Shifting Business Models: Adapting to new consumer trends, such as affordable travel, online businesses, and digital services, can help sustain growth.
- Government and Industry Collaboration: Public and private sectors need to work together to create attractive opportunities for local professionals to remain in the country.
- Developing Remote Work Opportunities: Companies that allow remote work can keep talented employees engaged without forcing them to relocate.
- Encouraging Entrepreneurship: Providing support for startups and small businesses may create more opportunities that incentivize professionals to remain in Indonesia.
All in all, the #KaburAjaDulu trend is reshaping Indonesia’s domestic business landscape, posing significant challenges to workforce retention, consumer spending, and economic stability. To counteract these effects, businesses must adapt by offering better incentives, embracing digital transformation, and addressing shifting market demands.
Additionally, fostering entrepreneurship, investing in skills training, and improving working conditions can help retain local talent. With proactive measures, Indonesia can work towards creating a more stable and attractive business environment that encourages talent to stay and thrive.
References:
[7] https://www.journals.uchicago.edu/doi/10.1086/721684
[8] https://www.oecd.org/en/publications/a-review-of-indonesian-emigrants_48a8a873-en.html
[9] https://www.migrationpolicy.org/article/indonesias-labor-looks-abroad
