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Analysis: Building skills for the future in Indonesia’s workforce

Indonesia’s labor force, which stood at over 136 million in 2019, can serve as 136 million opportunities to deliver success for the nation’s growing economy

Davids Tjhin (The Jakarta Post)
Jakarta
Mon, February 3, 2020

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Analysis: Building skills for the future in Indonesia’s workforce

I

ndonesia’s labor force, which stood at over 136 million in 2019, can serve as 136 million opportunities to deliver success for the nation’s growing economy. With a labor force participation rate of 67.49 percent in August 2019 as reported by Statistics Indonesia, the workforce — and the opportunities it presents — will only continue to grow. But unleashing this potential will require an informed understanding of the evolving global environment.

Megatrends such as technological transformations and increasing globalization are disrupting how we work. These trends will require individuals and organizations to adapt, to embrace new skills and ensure a growing focus on learning, to succeed in a landscape where change itself is now the most reliable constant. This is true from the biggest bank right down to the smallest warung (kiosk).

In Decoding Global Talent, Boston Consulting Group (BCG) carried out a global workforce survey that explored insights from 366,000 people in over 197 countries, including Indonesia. The results paint a picture of a world in which workers are increasingly aware of the importance of reskilling and upskilling and are motivated by growing recognition of the megatrends that will impact their future working life.

In Indonesia, 65 to 70 percent of respondents believe that their jobs will be greatly affected by technology changes or globalization, above the global average of 61 percent. Addressing those concerns will be crucial in unlocking the potential of Indonesia’s substantial workforce.

The role of learning will be vital in managing this change. Sixty-four percent of Indonesians spend at least a few weeks each year on personal learning and development, just under the global average of 65 percent but further below the Asia-Pacific average of 70 percent.

BCG’s analysis reveals that the willingness of individuals to retrain for a changing role varies by occupation. The global study shows that regardless of where in the world they live, individuals working in sales, administrative and service jobs are more willing to reskill for a new role. Those working in science, IT and law are the least likely to express this desire.

Individuals in the latter roles are largely already invested in learning to stay competitive within their current occupation. Respondents who worked freelance or are self-employed also showed a higher willingness for learning. Individuals in East Asia showed a particular focus on digital learning, with 80 percent preferring mobile apps or online courses when training for a new skill.

Future skills

Adjusting to changing global trends of the future covers a wide range of disciplines in practice. Indonesia presents an interesting picture of how those priorities are viewed, with analytical skills seen as the most important discipline in developing for the future. Communication is ranked second and creativity third, perhaps speaking of a positive view of what could be considered future soft skills — where the ability to work and communicate creatively is just as important as the hard skills of analytical understanding.

The least important of the 13 elements identified in Indonesia is cross-cultural sensitivity, a position that perhaps stands in contradiction to the more pressing need for communication in an increasingly global world. Of the 19 nations analyzed in detail, Indonesia was also the one that placed collaboration lowest on its list of priorities.

If we are to unlock the opportunity inherent in those 136 million workers, building the right pathway to the future will require governments and companies to work together.

Foundation of success

Upskilling and reskilling are vital to the future of a successful economy. If Indonesia wishes to achieve its growth targets of 5.3 percent in 2020 and wider ambitions going forward, then supporting development of the national labor force will be key.

Corporations should strive to create a strategic workforce plan that can identify internal talent and skills and map that toward future needs. Targeted upskilling programs will be essential in meeting that need, providing the means to evolve and enhance your existing talent pool.

It is important to establish such upskilling opportunities throughout your organization. This is a long-term investment in your people, and your company’s success. Equally, organizations should recognize the importance of supporting workforce growth on a national level to help develop the talent of tomorrow.

Involvement in initiatives such as developing the government’s technical and vocational education training (TVET) and apprenticeship programs offer potential areas to consider.

The government is of course an essential enabler of this talent transformation. It not only has the power to ensure supporting programs are in place but is vital in encouraging a wider national environment of upskilling and reskilling. The government should continuously forecast workforce and skills gaps to provide an informed plan on a national level. That means partnering with the private sector to identify gaps, skills forecasts and provide informed decision-making for the future.

Indonesia currently ranks 65th globally for Skills under the World Bank’s Global Competitiveness Report, and 40th for Skills of Future Workforce. These measures can be improved if the right efforts are undertaken.

Actively matching skills and jobs in partnership with business or academic institutions will be crucial. This includes a particular focus on lifelong learning to ensure skills continue to evolve in the face of changing workforce needs. It is incumbent on decisionmakers to build an educational framework fit for tomorrow, ensuring students acquire the skills they need today, while learning how to adapt to meet changing needs in future.

The recent appointment of Gojek cofounder Nadiem Makarim as education and culture minister could represent a powerful opportunity to inform such a strategy for education.

Individuals must also recognize their own part in this picture. Each one of those 136 million people active in our workforce has within them the power to improve their own prospects. Think through your own goals and needs and build a learning plan that develops the skills to help you achieve those goals. Be aware of initiatives such as the recently announced preemployment card, which may support you on this journey.

Learning should become part of your life. There is a multitude of ways to access learning in the modern world, from traditional university courses to online platforms. Look for assignments within your work that can also help you learn and adopt new skills. That means embracing learning for life as a continuous process.

In this changing world of work, the ability to learn and adapt will be vital. With the backdrop of digital transformation and sweeping global change, the workforce skills required for the future will inevitably evolve. It is up to government, companies and individuals to nurture their own transformation in order to better position themselves on the journey to success.

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The writer is managing director and partner with the Boston Consulting Group in Jakarta and the leader of BCG’s Strategy practice regionally.

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