Job-education mismatch is a ticking time bomb for Indonesia. Such is because Indonesia is bound to enjoy its demographic dividend in the period between 2020 to 2030, when its productive age group outsizes the non-productive one. However, for the dividend to materialize requires that the working age population has a job that matches its educational background, vice versa.
In addition, the globalization and free trade era may observe that domestic job market is filled in by foreigners, if domestic labor supply is unable to match the demand for certain qualifications.
Those were the key points from the national seminar “Job-Education Mismatch and its Effect on Indonesia;s Labor Market”, held 22 August 2017, as a joint effort between Padjadjaran University’s SDG Center and the Indonesian Economist Association (ISEI). Professor Armida Alisjahbana as the Director for Unpad’s SDG Center opened the seminar.
Speakers presenting at the seminar included Rahma Iryanti (Ministry of National Development Planning/BAPPENAS), Sumarna F. Abdurahman (National Professional Certification Agency), Emma Allen (Asian Development Bank), Anton J. Supit (Chair of National Board of Directors APINDO), M. Aditya Warman (APINDO Training Center and Board of Overseers Workers Social Security/BPJS Ketenagakerjaan) and Abdul Malik (education expert and MPR RI Research Center).
Job-education mismatch produces skills gap that can be solved by an effective training strategy, such as by aligning skill level target with a mapping of local potency, according to Rahma Iryanti. In addition, Aditya Warman noted, vocational trainings must provide technical competencies that are focused on specific professional knowledge, as well as providing skills in team work and personal character development.
Emma Allen used “JobStart Philippines” as an example of a program that addresses job-education mismatch. The government of the Philippines created the program to provide trainings and career advising, as well as internship programs and job placement.
Job-education mismatch is considered as a challenge for achieving Sustainable Development Goals in Indonesia. This is because the problem is strongly connected with other SDGs, such as poverty alleviation, stable economic growth, and wellbeing.