The government of Indonesia will invest US$35.5 Bn this year to improve the employability of the country’s workforce.

According to reports, the government is strengthening educational establishments to help develop the required workforce for the ‘Fourth industrial revolution ’.

Indonesia’s Finance Minister Sri Mulyani Indrawati shared in media that the government has allocated 20 percent of its total annual budget for this year to the education sector, which amounts to US$35.4 Bn.

If you refer to the last year report of 2018, the unemployment rate in Indonesia has increased to 5.34 percent in the third quarter of 2018 from 5.13 percent in the first quarter of 2018.

It is vital for Indonesia to focus on skill development to enhance employability. According to a report by the International Labor Organization (ILO), Indonesia has severe shortages of skilled labor due to the out-migration of skilled workers, an aging workforce and the lack of capacity to provide training. 

The report stated also highlights the inadequate training programs available in the country. The report stated that the training programs available are often out of date and do not meet the industry requirements. Also, the training is not always equally available to all sectors of the community."