Purpose – This study investigates the developmental impact of a large-scale national internship programme in Indonesia, using the employability capital framework. It positions internships as transformative psychosocial spaces within higher education. Design/methodology/approach – A pre–post longitudinal design was employed, involving over 10, 000 undergraduates enrolled in the MBKM internship scheme. The study uses the Wilcoxon signed-rank test and cluster analysis to examine multidimensional changes in human, social and cultural, identity, psychological capital. Qualitative data from field supervisors further enrich the findings. Findings – The programme produced varied transformation profiles, with the most substantial growth observed in psychological and identity capital. Psychological capital showed a medium-to-large pre–post effect size (r ˜ 0.45). Cluster analysis identified four participant profiles, holistic transformers, reflective rebuilders, targeted improvers and stagnant participants highlighting heterogeneous outcomes shaped by individual agency and contextual engagement. Field supervisors corroborated improvements in workplace readiness, collaboration and soft skills, but also noted gaps in technical depth and self-management that require further support. Originality/value – This study represents an empirical application of the employability capital framework at scale in an emerging economy. It reconceptualises internships as spaces for identity formation and resilience-building and contributes to international discussions on inclusive work-integrated learning practices and apprenticeship policy reform. © 2025 Emerald Publishing Limited
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