Jakarta – The Indonesian government acknowledges it is simply running out of ideas to create employment for the three million new job seekers each year and the nation's pool of 40 million unemployed. Only 1.6 million jobs were becoming available each year, said Manpower and Transmigration Minister Jacob Nuwa Wea.

The government had no new or special strategies to tackle unemployment, he said.It could only continue to send workers abroad and explore domestic job opportunities in agro-industry, fisheries and tourism.

"The government will continue to focus on two main strategies: sending more maids overseas and maximising domestic sectors to create more vacancies," Mr Jacob said on Friday. But he was unable to say what the government had in mind to encourage domestic sectors to create new jobs.

Indonesia had to increase its economic growth from 3.5 per cent to 7 per cent in order to provide jobs for three million people annually, experts said. The government's forecast for next year's economic growth is 4 per cent.

Mr Jacob said human labour exports were still the best alternative to reducing unemployment, saying overseas markets could recruit between three and four million workers a year. Most of about 460,000 Indonesians employed in countries such as Malaysia, Singapore, Saudi Arabia and the Middle East were unskilled workers, mostly serving as maids.

Many Indonesians were not eligible for professional employment overseas because their skills were inadequate. A new labour Bill, currently before the House of Representatives, would give better legal protection to Indonesian workers overseas.

Mr Jacob criticised the education system for failing to provide students with the right skills. And he said it would pay to strengthen informal business sectors.