The employability of Indonesian graduates has become an issue attracting the attention of various stakeholders for the last decades. Indonesian higher education has continuously renovated its curriculum and pedagogies to equip students with knowledge and skills that are perceived to be necessary for their post-study careers. However, rich evidence has been found about graduates' low employment rates, job sustainability, and mismatches between what they learn in universities and what the workforce requires. This chapter discusses key employability issues Indonesian students face and unpacks the gaps between higher education programs and labor market requirements. It will then discuss a capitals-based approach as an alternative framework to guide relevant stakeholders in better preparing Indonesian students for their employability trajectories.