Indonesia is an islamic country that still has problems in economics such asunemployment and poverty. Stability and economic growth are expected toovercome these problems. Two-way relationship between unemployment and economic growth can be summarized in a system of simultaneous equation. Two directions relationship of mutual influence can be summarizedin a system of simultaneous equations. Economic variables are dynamic; the value is influenced by value of variable itself in the past and also the value of other variables. In a dynamic panel data model there is a lag of the dependent variable that causes the OLS estimates can be biased and inconsistent. Arellano-Bond GMM with optimal weight produces parameter estimate which is unbiased, consistent, and efficient. From this study we can conclude that there is a simultaneous relationship between economic growth and unemployment. If economic growth increases 1%, it will cause the unemployment decrease to 0.956% in short-term and 0.988% in shortterm. On the other hand, if unemployment increases 1%, it will cause a slowdown in economics to 0.465% and 0.615% for the long term