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Jakarta Post

Vocational education reform more urgent than ever

The third round of the presidential debates on Sunday evening that pit vice-presidential candidates Ma’ruf Amin and Sandiaga Uno against each other was a flat affair

Hendarsyah Tarmizi (The Jakarta Post)
Jakarta
Wed, March 20, 2019

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Vocational education reform more urgent than ever

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span>The third round of the presidential debates on Sunday evening that pit vice-presidential candidates Ma’ruf Amin and Sandiaga Uno against each other was a flat affair.

Although the two could easily express their ideas and programs articulately, they refrained from attacking each other orally during the two-and-half-hour debate on education, health, manpower and culture.

Unexpectedly, the 76-year-old Ma’ruf, a Muslim cleric, demonstrated his extensive knowledge on issues other than Islam during the debate, as he explained in plain language the programs he and the incumbent President Joko “Jokowi” Widodo would realize if they were elected.

For example, while Ma’ruf did not offer anything new on the employment issue, he said if reelected, President Jokowi’s main agenda would be to improve the existing policy that had successfully reduced the country’s unemployment rate to its lowest in 20 years.

Ma’ruf also said that to ensure that job seekers would possess the skills needed by the industrial sector, they would expand the current program, which involved the business community in providing professional training programs. A number of incentives would also be given in addition to the current tax benefits to encourage more companies to join the program.

Prabowo Subianto’s running mate Sandiaga offered more concrete programs to manage unemployment and in creating jobs, although some of them seemed unrealistic.

Sandiaga said he and Prabowo had just launched their Rumah Siap Kerja (ready to work employment center) program in a bid to reduce unemployment in the country. The employment center, which also assists in online job searches and applications to both private companies and state institutions, would gradually be established in all districts so that high school graduates who cannot continue their education can gain the skills they needed.

He also talked in length to explain the One District One Center (OK OCE) initiative, the flagship entrepreneurship program he initiated two years ago when he was the Jakarta deputy governor. He said the OK OCE program helped young people become entrepreneurs so they could create jobs instead of remaining job seekers. The program offered business management and marketing training and helped participants access financing.

Although a number of businesses established under the OK OCE program have since failed, Sandiaga defended the initiative, which he said was needed not only to provide jobs but also to promote an inclusive economy.

Overall, the employment programs Ma’ruf and Sandiaga offered are important. They are the same in nature, and simply have different names. They all call on the need to reform the vocational education system so that graduates can meet the needs of the manufacturing and service industries.

Reforming vocational education is now more urgent than ever, as we have to prepare our human resources for the fourth industrial revolution while taking advantage of the country’s demography dividend.

Industry 4.0 is a reality that all countries in the world must face. In this industrial era, manufacturing will start to employ smart technology, automation and real-time data to boost productivity and cut costs in order to compete in the global market.

Indonesia has no choice but follow the trend. Large manufacturing companies have to invest big in automation technologies and upgrade the skills of their workers so they can run smart factories.

Many unskilled workers will lose their jobs as automation replaces them. The International Labor Organization predicted that Indonesia, the Philippines, Thailand, Vietnam and Cambodia would lose 56 percent of unskilled jobs to automation in the next few decades.

Improvements to secondary and tertiary level vocational programs, as well as to state and privately run informal training programs, are needed if Indonesia is to benefit from its demographic bonus. This is expected to peak by 2030, when the working age population is expected to account for 70 percent of the national population.

As the International Monetary Fund has suggested, Indonesia will have to accelerate job creation for the working age population and reduce youth unemployment benefit from the demographic bonus. At the same time, it must implement structural reforms to accelerate growth and diversify the economy away from agriculture and toward industry and services.

Given all the impending threats, whoever wins the presidential election on April 17 should prioritize their employment program. Otherwise, the dream of turning Indonesia into the fourth largest economy by 2050 will remain just that: a dream.

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The author is a staff writer at The Jakarta Post.

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