Manpower Minister: Many Graduates Unemployed Because Not Meeting Market Needs

TEMPO.CO, Jakarta - Indonesian Manpower Minister Ida Fauziyah said the country’s labor sector is still facing challenges. This is because the domestic labor market is dominated by junior high school graduates and lower-level graduates, while there is a high unemployment rate in higher education graduates, such as senior high school and even university.

“Unemployment among higher education graduates is because it doesn't meet the needs of the market,” said Ida in the Indonesia Economic Outlook 2023 at Jakarta Ritz Carlton Hotel, Wednesday, December 21, 2022.

To beat off this challenge, Ida said her ministry had enforced a number of policies following the ratification of the Job Creation Law in November 2020. One of them is about vocational training and education.

President Jokowi has also issued Presidential Regulation No. 68 of 2021 as part of the regulatory framework in the Job Creation Law. The regulation notes a number of key points. First, the basic principles of business-oriented vocational training and education.

“Then secondly, [it is stipulated that] vocational education and training are the responsibility of the government, local government, and the private sector. This is a collaborative Presidential Decree,” said Ida.

The Manpower Minister further explained that her ministry emphasized lifelong learning because, in the current industrial era 4.0, inclusive upskilling and reskilling are necessary to create a workforce that meets the market needs.

RIRI RAHAYU

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