Indonesia focuses on workforce transformation to boost global competitiveness

Indonesia is addressing workforce challenges by prioritising upskilling and reskilling to equip employees with digital and industry-specific skills for future growth.

Indonesia’s government has highlighted workforce quality enhancement as a critical priority to improve the nation’s global competitiveness, with Minister of Manpower Yassierli emphasising the essential of human resource development in adapting to the digital age.

The country is making strides in preparing its labour force with the necessary skills to thrive in emerging global industries. Yassierli underscored that Indonesia’s workforce, while abundant, faces challenges due to low education levels and insufficient digital capabilities. These obstacles are reflected in the nation’s performance in global human capital and digital skills rankings, where it lags behind several ASEAN counterparts.

“The challenges facing the Indonesian workforce are low education levels and a lack of digital skills,” he said. “This is why the improvement of human resources is so critical to fostering a competitive workforce in the digital era.”

Despite the growing need for digital proficiency across various sectors, Indonesia’s current human capital index remains below the ASEAN average, with significant gaps in both education and digital competencies.

In response, the Indonesian government is committed to fast-tracking employment sector reforms, with a focus on workforce upskilling and reskilling initiatives. The government’s strategy is centred around equipping employees with the skills required for key sectors, including green jobs, medical technology, and the digital economy. These sectors align with global trends that demand expertise in sustainability, health innovation, and digitalisation.

Key to this transformation is vocational training. In 2024, Indonesia launched over 3,300 vocational training programmes designed to tackle specific skills gaps and prepare the workforce for future opportunities. These initiatives aim to provide employees with hands-on, practical skills relevant to a wide range of industries. The government is particularly focused on collaboration with educational institutions and industry partners to ensure that training is aligned with the evolving needs of the global job market.

READ MORE: Indonesia to launch National Productivity Board to boost economic growth

Yassierli also highlighted the importance of competency certifications that align with international industry standards. These certifications help employees showcase their skills, enhancing their employability on the global stage and promoting workforce mobility. By standardising competencies, Indonesia aims to boost its workforce’s international competitiveness.

The government’s focus on vocational training and certifications is part of a broader strategy to upskill the workforce in areas with high demand for skilled labour, such as renewable energy, AI, data analytics, and other emerging sectors.

Yassierli expressed optimism that inclusive policies and cross-sector collaboration will lead to the development of a high-quality workforce capable of meeting the demands of a rapidly changing global economy, reported OpenGov.

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