Paid vs Unpaid Internships in Indonesia: What Students Must Know

Internships give students a chance to apply classroom theories to real-life challenges, build professional networks, and explore potential career paths. However, one critical issue remains: should students choose paid internships or unpaid ones?

In Indonesia, the government recognizes the importance of internships. To bridge the gap between education and the workforce, the Ministry of Education, Culture, Research, and Technology introduced the Certified Internship and Independent Study Program (MSIB) through the Merdeka Belajar Kampus Merdeka (MBKM) initiative.

This program supports a more flexible, student-centered learning model that prepares students for the dynamic demands of modern industries.

What Makes MSIB Attractive for Indonesian Students?

The MSIB program provides a formal structure for internships. It guarantees not only real industry exposure but also several benefits that protect students’ rights. These include:

Stipends or financial assistance
Official certification from the Ministry
Legal protection under labor regulations

Under Article 13, Paragraph (1), Point d of the Minister of Manpower Regulation No. 6/2020, every intern has the right to receive pocket money. This law ensures interns are not treated unfairly or asked to work for free without compensation. Additionally, the program often includes written agreements that outline the responsibilities and rights of both the student and the host company.

According to a survey reported by Kompas.com, 70% of Indonesian students expressed interest in the MSIB program. Out of over 12,000 students who participated, more than 11,000 received financial support in the form of tuition assistance and activity funds, which were paid according to schedule.

Why Do Some Students Still Choose Regular Internships?

Despite the advantages, not all students opt for the MSIB program. Many students still prefer regular or independent internships due to several practical reasons:

Their universities may not support MSIB participation
Limited options in their specific fields of study
The application process is often lengthy and competitive
Independent internships offer flexible start dates and durations

In Indonesia, some students choose internships outside the MSIB system simply because the program’s structure does not align with their academic calendar or career goals. For example, creative industries or startups often provide more relevant roles through direct independent recruitment.

What Should Students Expect from an Unpaid Internship?

Unpaid internships still exist in many sectors in Indonesia, especially in NGOs, media companies, and creative startups. While these internships may not offer financial compensation, they are often seen as stepping stones to paid opportunities. Many students use unpaid internships to gain experience before applying for more competitive, paid roles.

However, students who choose unpaid internships must prepare themselves. They need to:

Assist full-time staff with essential tasks
Accept tasks outside their field of expertise
Learn independently and adapt quickly
Work without financial support for transportation or meals

While unpaid internships can be rewarding in terms of experience, they may also be exploitative if the workload does not match the benefits provided. Therefore, students must assess the program’s learning value before applying.

Legal Protection for Interns in Indonesia

From a legal standpoint, unpaid internships without a clear agreement may violate labor laws. According to Article 22 of the Indonesian Labor Law, every internship must be based on a written agreement that includes:

Rights and duties of both the intern and the employer
Minimum allowance or transport money
Accident and death insurance
A certificate of completion

In addition, Ministerial Regulation PER.22/MEN/IX/2009 requires companies to provide safety protection during the internship. If a company fails to provide a written agreement, the intern could be considered a regular employee, entitling them to a full salary and benefits.

Key Considerations for Indonesian Students

Before choosing between a paid or unpaid internship, Indonesian students should consider the following:

Does the internship provide a certificate?
Is there a written agreement with clear terms?
Will the tasks help develop your career-relevant skills?
Is the internship in line with labor laws?

In some cases, an unpaid internship may still be worth it—if it offers valuable experience, strong mentorship, and the chance to build a professional network. But whenever possible, students should seek internships that offer both experience and fair compensation.

Final Thoughts

Internships in Indonesia have become more than just an academic obligation. They are now essential tools for career development. Whether students choose the structured MSIB program or an independent internship, they must ensure that their rights are protected and their time is valued. Paid internships clearly offer more legal and financial security, but unpaid internships can also be valuable—if approached wisely.

By being informed and selective, Indonesian students can take full advantage of internship opportunities and enter the job market with confidence, experience, and a solid understanding of their rights.

Internships are no longer optional for many university students in Indonesia. As the competition in the job market increases, students need more than just academic degrees—they also need practical experience. Internships give students a chance to apply classroom theories to real-life challenges, build professional networks, and explore potential career paths. However, one critical issue remains: should students choose paid internships or unpaid ones?