Low Labour Productivity a Significant Hurdle to Indonesia’s Economic Growth
Indonesian Minister of Manpower, Yassierli, recently underscored the importance of addressing low labour productivity, which remains a significant obstacle to the country’s economic growth. During a dialogue with Andalas University alumni in Padang, Yassierli emphasized that the fact that productivity remains stagnant is unacceptable.
Sectoral Differences in Productivity
The Minister highlighted that sectors such as agriculture, trade, and manufacturing, which employ a substantial portion of the workforce, exhibit relatively low productivity levels. In contrast, sectors such as mining, real estate, and information and communication technology, which employ a smaller workforce, demonstrate significantly higher productivity.
"Triple Skilling" Vocational Training Policy
To address this challenge, the Ministry of Manpower has implemented a "triple skilling" vocational training policy, focusing on skilling, reskilling, and upskilling. This multifaceted approach is crucial to adapt to the rapidly evolving demands of the modern industrial landscape. The policy aims to equip job seekers and recent graduates with the necessary skills to enter the workforce and reduce unemployment.
Reskilling and Upskilling Initiatives
Reskilling initiatives aim to support workers facing potential job displacement by providing them with the skills needed to transition into new roles. Upskilling programmes, on the other hand, focus on enhancing the existing skills and competencies of the current workforce, thereby boosting productivity and competitiveness within companies.
Skills Gap in the Indonesian Job Market
A significant 63 per cent of industries have identified a substantial gap between the skills acquired by university graduates and the actual demands of the Indonesian job market. Yassierli emphasized that this highlights the critical need for these programmes.
Indonesia’s Productivity Lag
Yassierli further noted that Indonesia’s productivity lags behind that of other ASEAN countries, citing Vietnam as an example. Research indicates that 10 per cent of Vietnam’s workforce graduates from vocational education institutions, a stark contrast to Indonesia where less than one per cent of the labour force has undergone vocational training.
Conclusion
Low labour productivity remains a significant hurdle to Indonesia’s economic growth, and addressing this challenge is crucial to adapt to the rapidly evolving demands of the modern industrial landscape. The "triple skilling" vocational training policy implemented by the Ministry of Manpower is a critical step towards enhancing the skills and competencies of the Indonesian workforce.
Frequently Asked Questions
Q: What is the "triple skilling" vocational training policy?
A: The "triple skilling" vocational training policy is a multifaceted approach that focuses on skilling, reskilling, and upskilling to equip the Indonesian workforce with the necessary skills to adapt to the modern industrial landscape.
Q: What is the purpose of reskilling initiatives?
A: Reskilling initiatives aim to support workers facing potential job displacement by providing them with the skills needed to transition into new roles.
Q: What is the purpose of upskilling programmes?
A: Upskilling programmes focus on enhancing the existing skills and competencies of the current workforce, thereby boosting productivity and competitiveness within companies.