BackgroundIn the past 15 years, the Government of Indonesia has managed to reduce the unemployment rate and provide better education for the people. The unemployment rate has fallen to 5.3 percent in 2017 from a high of 11.2 percent in 2005. However, relatively low unemployment rate in Indonesia does not fully reveal the challenges that the economy faces to create adequate number of good and decent jobs. Although the overall unemployment rate declining, the unemployment rate among youth is also still very high (19.4 percent in 2017).
An equally worrying trend is the number of young people who are neither employed, in education or training (NEET). The proportion of NEET in Indonesia is quite high (23.2 percent) and in fact it is one of the highest rates in Asia.
Skills mismatch and school to work transition is considered to be the main challenge and there is huge commitment from the Government of Indonesia to address this issue through apprenticeship. In December 2016, the President of the Republic of Indonesia launched a “National Apprenticeship Program Movement” and called for companies and workers to join the program.
However, during the course of implementation of this National Apprenticeship Program, the government is facing many challenges and it has not yet produced the intended outcomes. Despite much efforts in strengthening the national apprenticeship (NAP), the current program remains open to interpretation and there is no clear common understanding of the NAP. The project will showcase that quality apprenticeship program could be accepted by the tripartite constituents: Government, Employers, and the Workers, and will produce the intended employment outcomes.
- Improved the employment outcome of skills training through quality apprenticeship model.
- The implementation of National Apprenticeship Programme (NAP) by the Tripartite Partners is strengthened.
- Ministry of Manpower and Manpower Office
- Indonesia Employers' Association (Apindo)
- Trade Union Confederations
- Sectoral Business Associations
- Industrial Estates