Context: As Indonesia is establishing itself as middle-income country, the demand for technical and vocational skills is increasing rapidly. Often the qualifications gained at vocational training institutions do not match the real needs of the labour market and, as a result, graduates do not possess the skills they need to find decent employment. This gap between the skills supplied and the demands of the labour market contributes to severe youth unemployment, which in Indonesia is more than three times higher than the overall level of unemployment.
Implementation of programme/ initiative: Sustainable Economic Development through Technical and Vocational Education and Training (SED-TVET) was commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and it is being implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on behalf of BMZ in cooperation with the Indonesian Education, Industry and Manpower Ministries. The programme activities take place in vocational institutes in the provinces of West and Central Java, Yogyakarta, South Sulawesi and East Kalimantan. The primary aim of the programme is to increase the cooperation of the business sector with TVET institutions in designing and implementing vocational education and training. This is achieved through the improvement of management and teaching capacities of TVET institutions, increased cooperation with the private sector, the implementation and monitoring of TVET regulations and quality assurance and certification in selected sectors.
Main challenges: The main challenge faced at the beginning of the programme was the low level of education infrastructure and absence of linkages with the private sector. This obstacle was overcome in part through the investments made by the KfW (Kreditanstalt für Wiederaufbau) Development Bank which facilitated the infrastructure upgrades of 23 training institutes.
Results achieved: Since the implementation of the programme in 2010, the quality of teaching has improved for approximately 8,400 students each year and the graduates of these schools also receive access to career guidance and job placement. The programme has strengthened the capacity of its Indonesian partners to assess legislation and regulations in the field of TVET and subsequently draft improved versions. Employers have actively been involved in incorporating modern occupational standards into vocational qualifications, which aids in making the programmes more relevant. Similarly, employers have worked together with schools to help shape vocational training courses that more closely match labour market demands.
Moving Forward: The programme is currently still underway and will end in 2017. After the end of the programme, GIZ expects all the Indonesian institutions it collaborated with will be able to replicate the same systems of vocational training and cooperation with the private sector in many other parts of Indonesia.
Replicability: Developing partnerships between schools and industry provides mutual benefits for all stakeholders involved, including students, trainees, companies and communities. This good practice also highlights the importance of financial support in order to make important hardware upgrades to education and training facilities.
Date: November 8, 2016