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View all search resultsOver the next three to 10 years Indonesia will continue to have a deficit of structural engineers, network engineers, data engineers and project managers for specific construction projects, such as tunnel construction.
The business community considers the 2003 Labor Law and its derivatives to be one of the factors dragging down the country’s competitiveness, as high severance pay requirements and high wage requirements have discouraged labor-intensive, smaller enterprises from investing in the country.
It’s all top line at this point: About Rp 10.3 trillion has been budgeted for the cards that are to be disbursed to 2 million recipients, of which 1 million would specifically be for digital training and the rest for other unidentified skills. The mechanism would be similar to that of scholarships with certain eligibility requirements and application processes.
“Indonesia’s labor force growth rate is slowing, which means that it will need to rely more heavily on productivity gains like those that automation provides,” the Alpha Beta-Prospera researchers wrote. Statistics Indonesia data show that Indonesia’s workforce growth has stagnated at less than 1 percent annually since 2011.
Unemployment rate for graduates of vocational high schools, which are meant to tailor students for specific jobs, is most alarming at 8.63 percent in February 2019, compared with 6.24 percent for university student graduates and 6.78 percent for high school graduates.
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