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Vocational Schools Problem or Solution to Unemployment?

Vocational schools in Indonesia have come under scrutiny after the Minister of Manpower revealed that graduates from vocational education, including vocational high schools (SMK) and diploma programs, are among the largest contributors to unemployment in the country. Data indicates that approximately 12% of Indonesia’s unemployed are graduates with bachelor’s degrees and diplomas. This has raised concerns about the relevance of the skills taught in these institutions to the needs of the industry.

Mismatch Between Skills and Industry Demand

The Minister of Manpower highlighted that one of the main causes of high unemployment among vocational graduates is the misalignment between their education and the needs of the industry. Many companies complain that vocational graduates lack the necessary skills to be job-ready, forcing them to spend additional time and resources on training new employees. As a result, vocational graduates often struggle to compete with candidates who have more relevant experience or educational backgrounds.

Challenges Faced by Vocational Graduates

Reports show that SMK graduates constitute the largest segment of the unemployed in Indonesia. They face difficulties in finding jobs that match their field of study, primarily because many companies prefer candidates with direct work experience or higher educational qualifications. In some cases, SMK graduates are compelled to work in fields unrelated to their expertise, often at lower wages.

Proposed Solutions

The Minister of Manpower and experts have proposed various solutions to address this issue, including:

  • Enhancing collaboration between vocational education institutions and industries. 
  • Internships, more specific skill training, and curricula that are more responsive to industry developments are some of the suggested measures.
  • Improving access to labor market information and early career guidance are considered crucial in helping vocational students make better career decisions.

However, some argue that the issue is not solely with vocational schools but also with the limited job opportunities available. They stress that while vocational education plays a crucial role in workforce preparation, without sufficient support from the government and industry in creating enough job opportunities, graduates will continue to face significant challenges in the labor market.

Moreover, there are calls to continuously update and align vocational school curricula with technological and industrial advancements to better equip graduates for the competitive job market. Support for internship programs and partnerships with companies is also seen as vital in enhancing the practical skills of graduates.

Addressing the unemployment problem in Indonesia requires collaboration across multiple sectors. Intensifying internship programs, providing more specific skill training, and creating more responsive curricula are some ideas that can be pursued to improve the quality of the future workforce. The employment rate of vocational graduates will increase if there is synergy between vocational school curricula and industry needs, such as through Structured Internship programs.

The Structured Internship program, currently run by Wise Steps Foundation in collaboration with Swiss Skills for Competitiveness (SS4C), aims to bridge the gap between vocational education and industry needs in Indonesia. By involving companies in designing and implementing structured internship programs, this initiative ensures that the skills acquired by vocational students are truly aligned with labor market demands. Additionally, with government incentives such as tax reductions for companies supporting this program, Structured Internships are expected to offer a concrete solution to reduce unemployment and enhance the competitiveness of vocational graduates in Indonesia.

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