Indonesia enhances workforce development with key industry partnerships to boost skills in electronics sector

BEKASI, West Java, Indonesia (ILO News) - Prof. Yassierli, PhD, Indonesian Minister of Manpower, Rahmat Gobel, Chairman and Shareholders of Panasonic Global Group and Simrin C. Singh, ILO Country Director for Indonesia and Timor-Leste officially opened the signing ceremony of the Ministry of Manpower’s Centre for Vocational and Extension Service Training (Cevest) Bekasi collaboration with various industries. One of the signed collaborations was between Cevest Bekasi with Matsushita Gobel Foundation (MGF), the ILO’s implementing partner to strengthen human capital through upskilling and reskilling in the electronics industries.

Under the theme “Industry Partner Meeting with Minister of Manpower: Partnership to Strengthen Excellent and Competitive Human Resources”, the signing ceremony was held in Cevest Bekasi on 12 November. The signing ceremony also marked the joint effort to improve the competency of human resources in electronics sector.

We are facing lack of skills development. Skilling, reskilling and upskilling programmes should become the priority of the government. Thus, the government has increased the target from 250 thousand to 1 million people joining the skilling, reskilling and upskilling programmes.

Prof. Yassierli, PhD, Indonesian Minister of Manpower

Minister Yassierli in his keynote speech reminded around 250 attending participants offline and online about the employment challenges faced by Indonesia. He highlighted high unemployment rate, low educational background and lack of productivity as three key main challenges that should be improved with skills development initiatives.

A study conducted by the University of Indonesia and the ILO released in May 2024 indicates that manufacturing sectors such as the electronics are dominated by high school graduates. Meanwhile, 2022 data from Sakernas reveals that 80 per cent of workers in the electronics sector have only secondary education and just 12 per cent have a bachelor or equivalent education background.

“We are facing lack of skills development. Skilling, reskilling and upskilling programmes should become the priority of the government. Thus, the government has increased the target from 250 thousand to 1 million people joining the skilling, reskilling and upskilling programmes,” he remarked.

He greatly appreciated the signing of Memorandum of Understanding with various companies and organizations, including the ILO, as the form of partnership that would improve the skills development initiatives. “I believe that these collaborations with various organizations and with support of the ILO could be well-implemented and contribute to the improvements of skills.”

By combining the resources and expertise of the public sector with the know-how and innovation of the private sector, we are laying the foundation for a more inclusive, future-ready and sustainable and technical and vocational training ecosystem.

Simrin Singh, ILO Country Director for Indonesia and Timor-Leste

Meanwhile, Rahmat Gobel underscored the significance of human capital and development. He highlighted the motto of people before product. “Human and skills development are key. Building an industry is not solely about building factories. Yet, through the industry we build quality human capital. We need to build competent workforce before making products,” he stated.

Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, appraised the event as the evidence of the strong collaboration forged between industry and public technical and vocational training institutions to develop the skills of the electronics sector workforce in Indonesia. She also congratulated the Ministry of Manpower, representatives of electronics industry and public training providers for this event.

“Greater collaboration between industry and public technical and vocational institutions particularly in the electronics sector are central to these efforts. By combining the resources and expertise of the public sector with the know-how and innovation of the private sector, we are laying the foundation for a more inclusive, future-ready and sustainable and technical and vocational training ecosystem,” she said.

The ILO support to this important collaboration is provided by the Skills Development and Responsible Business Conduct Project, funded by the Ministry of Economy, Trade and Industry (METI). The project focuses on promoting a more responsible business environment by improving the implementation of business and human rights in both policy and practice in Indonesia, particularly in electronic industry.