COVID-19: Promoting skills development

Engaging industrial sectors to address skills mismatch and economic recovery

Engagement of industries is the key for enhancing skills development. Indonesia, with support from the ILO, have promoted greater partnership with industrial sectors to address skills gap and mismatch as part of the economic recovery after the pandemic.

News | Jakarta, Indonesia | 30 June 2020
Skills mismatch is one of the reasons for unemployment and underemployment in Indonesia, particularly for youth. Skills needs of enterprises are often not well-communicated or understood by technical vocational education and training (TVET).

A student is mentored by a practitioner at one of the polytechnics in Jakarta
To address this challenge, the government of Indonesia has taken some measures, including efforts to strengthen and deepen the partnership between TVET institutions and industrial sectors. The strong partnership between them would ensure the knowledge and skills gained by the youth from TVETs are linked and suitable with the skill needs of the industries.

The Council will be driven by the industries in collaboration with relevant partners and will contribute to reducing skills gap and mismatch."

Dr. Rudy Salahuddin, Deputy Minister for Digital Economy, Manpower and MSMEs of the Coordinating Ministry for Economic Affairs
To promote greater involvement of industries, particularly sectoral industries, the Indonesian Coordinating Ministry for Economic Affairs, with support from the ILO, had conducted a consultation process with relevant stakeholders to initiate the establishment of a sector skills council in Indonesia.

These stakeholders included the Coordinating Ministry for Community Empowerment, Ministry of Manpower, certification board, employers’ association, industry and business of chamber and industrial associations who gathered at the high-level meeting held early this year in Jakarta.

Dr. Rudy Salahuddin, Deputy Minister for Digital Economy, Manpower and Micro, Small and Medium Enterprises (MSMEs) of the Coordinating Ministry for Economic Affairs, highlighted the importance of establishing a National Sector Skills Council. “The Council will be driven by the industries in collaboration with relevant partners and will contribute to reducing skills gap and mismatch through, among others, monitoring skills shortage, developing skills strategies, helping to develop curriculum for vocational training and approving framework for quality apprenticeship programme,” he said.

A high-level meeting held in Jakarta to discuss the possibility of the development of a national sector skills council

The engagement of industries is a key to enhance skills development and it is even more important during the economic recovery after the COVID-19 pandemic."

Kazutoshi Chatani, the ILO’s Employment Specialist
Like in other countries, the council is responsible for developing occupational profiles and standards, conducting labour market intelligence/information systems in relevant sectors, contributing in drawing up policies and, eventually, suggesting demand-driven courses and curricula that will help equip the workforce with skills required to guarantee decent employment opportunities.

“The engagement of industries is a key to enhance skills development and it is even more important during the economic recovery after the COVID-19 pandemic. It is hoped that Indonesia continues to strengthen its effort in skills development, particularly through the establishment of sector skills council, as a viable response to skills gap and mismatch,” said Kazutoshi Chatani, the ILO’s Employment Specialist.

Representatives of indusrial sectors of ICT, maritime and tourism welcomed the initiative to establish the sector skills council. During the consultative meeting, the possibility of piloting the sector skills council for four priority sectors in the country was discussed, covering tourism, ICT, maritime and logistics sectors. Follow-up meetings will be conducted to further discuss the process of establishing this national council.

The ILO through its Industry Skills for Inclusive Growth (In-Sight) Project facilitated the consultative processes. Funded by the Government of Japan, the second phase of In-Sight Project aims to promote mechanisms and practical approaches that enable industries and workplaces to become drivers of sustainable and inclusive growth in the Asian region.