Public-private partnership in skills development is key for more responsible business conduct in Indonesia

JAKARTA, Indonesia (ILO Press Release) – In today's rapidly evolving business environment, developing a skilled and informed workforce is paramount for sustainable growth. The International Labour Organization (ILO) Skills Development and Responsible Business Conduct Project, funded by the Government of Japan through the Ministry of Economy, Trade and Industry (METI), highlights the necessity of linking responsible business practices with skills development strategies and training plans. As key industries in Indonesia, such as the electronics, undergo digital transformation and strive for sustainability, investing in human capital and promoting responsible business conduct is even more critical.

To showcase the partnerships established in bridging the skills gap and in fostering better responsible business conduct in the electronics sector, the ILO’s Skills Development Project in collaboration with the Coordinating Ministry for Economic Affairs organized an interactive seminar on 26 February in Jakarta. The seminar exhibits collaborative efforts among relevant national and sector-specific stakeholders, including government, employers’ and workers’ organizations, companies, training centres/providers, and suppliers in the electronics industry in facilitating workforce development and promoting more responsible business practices as well as marks the closing of the ILO’s Skills Development Project in Indonesia.

The seminar is officially presided over by Dr. Ir. Mohammad Rudy Salahuddin, MEM, Deputy for Coordination of Industry, Employment and Tourism at the Coordinating Ministry of Economic Affairs and Simrin Singh, ILO Country Director for Indonesia and Timor-Leste. The seminar is officially closed by Deputy Minister for Coordination of International Economic Cooperation.

The synergy and collaboration with the ILO and other partners should be maintained in the future, as this strategic partnership plays an important role in human development for quality employment.

Dr. Ir. Mohammad Rudy Salahuddin, MEM, Deputy for Coordination of Industry, Employment, and Tourism at the Coordinating Ministry of Economic Affairs

Dr. Ir. Mohammad Rudy Salahuddin, MEM, Deputy for Coordination of Industry, Employment, and Tourism at the Coordinating Ministry of Economic Affairs, highlighted the critical need for skills development in Indonesia's electronics sector to enhance human capital and productivity. He also appraised the implementation of the ILO’s Skills Development Project that has also fostered the involvement of Indonesia’s semiconductor industry in the global supply chain.

"The synergy and collaboration with the ILO and other partners should be maintained in the future, as this strategic partnership plays an important role in human development for quality employment," he stated. "This partnership can also serve as a future reference in fostering more responsible conduct in the country."

Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, highlighted the timeliness of ILO’s support for Indonesia’s skills development programmes in response to the fast-paced industrial transitions and digital transformations facing the Indonesian labour market. “The ILO’s collaboration with various institutions both public and private will certainly ensure a timely and accelerated development of a well-equipped, trained, and skilled workforce in this key sector. In turn, this investment in skilling is sure to improve productivity, quality, while ensuring the fundamental elements of decent work such as social protection and fair wages.”

A knowledge-sharing session regarding good practices generated by the project on promoting inclusive and responsible work-based learning through quality apprenticeship, was presented by Chairul Saleh, Assistant Deputy for Manpower of the Coordinating Ministry for Economic Affairs, Darwoto, Deputy Chairman for Manpower of the Indonesian Employers’ Association (Apindo), Wisnu Wibowo, Head of Permanent Committee on Vocational Training of the Indonesian Chamber of Commerce and Industry (Kadin), Sholahudin, SE, ME, Director of Apprenticeship and Vocational Training of the Ministry of Manpower and Djoko Wahyudi, President of the Federation of Panasonic Gobel Trade Unions (FSPPG).

The panellist discussed about the development and integration of grievance mechanism for apprentices and the importance of public-private partnership for upskilling and reskilling workers to promote more responsible business practices in recruitment and hiring as well as in developing career development plans for the workforce in the electronics sector.

The ILO’s collaboration with various institutions both public and private will certainly ensure a timely and accelerated development of a well-equipped, trained, and skilled workforce in this key sector.

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

In addition, testimonials regarding the benefits of collaborations established and training programmes provided by the ILO’s Skills Project are presented by participating multinational companies, training centre/providers and small and medium-size enterprises that are suppliers in the electronics supply chain in Indonesia. These testimonials underscore that both employers and workers must develop their capacities in managing advanced technologies but also increase awareness of responsible business practices, fostering a more inclusive and resilient supply chain.

Within a duration of two years since the project start in 2023, the ILO’s Skills Project has engaged 1,150 employers and workers in the electronics sector, organized 24 capacity development and knowledge sharing workshops and seminars nationwide and developed eight training programmes in collaboration with government and the social partners. These activities have not only raised the awareness and knowledge, but also built the capacity of national stakeholders, particularly the electronics industry about the urgency of promoting skills development and responsible business conduct.

The ILO’s Skills Project has also published two Guidelines for employers on Quality School-based Apprenticeships in the Workplace and on Development of Grievance Mechanisms for Apprentices, onea training manual for TVET institutions and enterprises on Skills Development and Responsible Business Conduct as well as conducted a skills assessment titled “Skills Development and Employment Situation in Indonesia’s Electronics Sector”, in collaboration with the Institute for Economic and Social Research – Faculty of Economics and Business of the University of Indonesia (LPEM FEB UI). These publications have set up a foundation to Indonesia’s key stakeholders in the electronics sector to continue fostering skills development for more responsible business conducts.

Over 100 persons representing multiple stakeholders participated in the seminar and joined the discussion to advance skills development for the improvement of workers’ adaptability and productivity, promote public-private partnerships to better facilitate skills development interventions and cultivate a policy and practice landscape for enhancement of supply chain resilience through improved trade and investment strategies.

The seminar is being livestreamed on ILO TV Indonesia.

For more information, please contact:
Dede Sudono
ILO’s Programme Coordinator for Skills Development and Responsible Business Conduct in Indonesia
[email protected]

Gita Lingga
ILO Senior Information and Communications Management Assistant
[email protected]