Youth employment

ASEAN to tackle youth unemployment through digital economy

ASEAN member states intensified their efforts to make the best use of the digital economy to tackle youth unemployment. The ILO together with the Indonesian Ministry of Manpower and the ASEAN Secretariat supported the efforts.

News | Jakarta, Indonesia | 20 November 2018
The Conference also marked the launch of the ILO-OECD Report titled “Labour Market Inventory ASEAN 2010-15: Labour market policy in an age of increasing economic integration”.
Key representatives of the ASEAN Member States gathered in Jakarta to intensify their efforts to tackle youth unemployment as part of the ASEAN’s response to the future of work in digital economy. The two day Conference, titled “Regional Conference on Reducing Youth Unemployment: ASEAN’s Response to the Future of Work in Digital Economy”, held from 15-16 November, engaged more than 70 participants from the ten ASEAN Member States as well as national participants from various organizations in the country.

The Conference was jointly organized by the Ministry of Manpower, the ASEAN Secretariat, the ILO and the Government of Switzerland. The Conference was officially opened by Pungky Sumadi, Deputy Minister for Population and Manpower Affairs of the Ministry of National Development Planning and Maruli A. Hasoloan, Director General of Manpower Placement Development and Job Opportunity Expansion of the Ministry of Manpower.

Pungky Sumadi, Deputy Minister for Population and Manpower Affairs of the Ministry of National Development Planning presented the digital economy condition of Indonesia

Finding qualified talent is a challenge. Thus, the Ministry of Cooperative and SME has also focused on the socialization of technopreneurship movement for students and youth."

Victoria br Simanungkalit, Assistant Deputy Minister for Production and Marketing of the Ministry of Cooperatives and SME
During the discussion, efforts taken by some ASEAN countries in response to the digitalization and digital economy were presented. Thailand, for example, has introduced a new strategy to include main industries such as robotics, aviation and digital. Meanwhile the Philippines has shown its readiness to adapt challenges of the industrial challenges by improving the quality of its TVET.

Demonstrating efforts taken by Indonesia, Roostiawati, Director of Labour Market Development of the Ministry of Manpower, said that Indonesia has focused on the improvement of its work competency standard, quality of vocational training, certification bodies and the utilization of the latest technology. “We have also encouraged the growth of skillful new entrepreneurs,” she said.

In line with the Ministry of Manpower, Victoria br Simanungkalit, Assistant Deputy Minister for Production and Marketing of the Ministry of Cooperatives and SME, emphasized its supports given to micro, small and medium enterprises (MSMEs) in the forms of capital assistance, certification and standardization for digital SMEs. “Finding qualified talent is a challenge. Thus, the Ministry of Cooperative and SME has also focused on the socialization of technopreneurship movement for students and youth,” she said.

The technology has opened up opportunities and has improved livelihoods by providing a platform that is accessible to everyone. The technology could also empower MSMEs through trust building, market development as well as better access to information, logistics and financial services."

Panji Ruky, Vice President for Regulatory Affairs of Go-Jek Indonesia
The Conference also presented the Indonesian leading digital company, Go-jek Indonesia. Go-Jek is a technology startup based in Jakarta, specializing in ride-hailing and online services. It is Indonesia’s first unicorn company.

In his presentation, Panji Ruky, Vice President for Regulatory Affairs of Go-Jek Indonesia, showed that the technology firms could create opportunities with micro, small and medium enterprises (MSMEs). Go-Jek Indonesia has been partnering with more than 300 thousand MSMEs and have created around 1.3 million employment.

“The technology has opened up opportunities and has improved livelihoods by providing a platform that is accessible to everyone. The technology could also empower MSMEs through trust building, market development as well as better access to information, logistics and financial services,” he said.

The Conference also marked the launch of the ILO-OECD Report titled “Labour Market Inventory ASEAN 2010-15: Labour market policy in an age of increasing economic integration”. The report reviews trends in labour market policies in ASEAN Member States and their main trading partners between 2010 and 2015.

The report also highlights the need to address informalities as a considerable policy gaps as far as labour market regulation is concerned and for continued dedication by policy makers to the improvement of labour market institutions and programmes. This commitment to the advancement of the Decent Work Agenda in the region could also benefit from further ASEAN-level actions focusing on on labour and social issues.

Discussion session on ASEAN's responses to the digital economy