CENTER FOR EDUCATIONAL DEVELOPMENT
The Indonesian government is investing in youths to enable them to hone their employability skills to compete in the digital economy.
2021 · 19 pages

Abstract
A critical factor in ensuring sustainability in this endeavor is the involvement and engagement of the private sector. The private sector is an engine for growth and a proponent of job creation. Ensuring collaboration between public and private sector partners through work-based learning in educational institutions will propel industry engagement and provide youths with employability skills to equip them for the digital economy. The AWARE3 project, through its three-part roundtable event, seeks to connect key stakeholders, including industry leaders, policymakers, educators, and innovators, to discuss and address challenges surrounding youth employability. The goal is to provide systemic, scalable, and sustainable solutions, referencing the AWARE3 model as a catalyst for youth employability within the digital economy. Project partners include Education Development Center (EDC), Ministry of Education, Culture, Research and Technology (MoECRT), Jakarta Education Agency (JEA), East Java Education Agency (EJEA), Persatuan Guru Republik Indonesia (PGRI), USAID, JPMorgan Chase Foundation, and other partners. The first virtual discussion series with private sectors in Indonesia, titled "Youth Workforce Challenges and Opportunities," was held on May 27, 2021. Twenty-seven participants from various backgrounds, ranging from existing and potential private sector partners from the AWARE3 project to representatives from the Ministry of Education, Culture, Research and Technology, Jakarta Education Agency, and a member of Parliament for DKI Jakarta, highlighted the following issues on SMK graduates and their gaps in entering the workforce. First, SMKs should balance hard and soft skills development in response to the growing digital economy. Second, it would be highly advantageous if SMK graduates could improve their communication skills, especially by using digital tools to convey their ideas. Third, meaningful experience from engaging with the private sector in an actual work environment can contribute to preparing work-ready SMK graduates. Fourth, it is crucial to strengthen collaboration between SMK education policymakers and the private sectors to align SMK graduate preparation and the industry requirements that the graduates would have to face when they finish school. Key takeaways from the roundtable discussion include current gaps in youth workforce development, such as inadequate opportunities for SMK graduates to learn, practice, and acquire skills that match industry standards. Soft skill gaps, particularly in self-management, communication, self-motivation, and enthusiasm for experiencing or learning a new process, are also a critical hurdle for SMK graduates entering the workforce. Communication skills in Bahasa Indonesia and English have been highlighted as areas that require attention, with English language skill improvement needed urgently in specific sectors, including hospitality and tourism. SMK graduates who aspire to be entrepreneurs are usually not well prepared, lacking technical knowledge and the right mindset. Skills with high industry demands in the digital economy include the ability to combine hard skills with other skills to come up with a solution at work and "sell" it. SMK graduates should be able to express themselves, understand marketing, and recognize appropriate media formats and channels. Digital communication skills have been identified as strong assets for job-seekers across sectors, involving using digital authoring tools with the human touch to plan and create content to express ideas. Communication skills, in general, are needed to convey ideas and opinions in the workplace, with skills and confidence to ask questions, probe for clarifications, and obtain more information in friendly ways highly emphasized. The private sector can support SMKs to fill the skill gaps by providing students with relevant knowledge, experience, and understanding of the work culture in the industry. SMKs welcome the private sector to collaborate with them to improve the quality of program offerings, including updating the curriculum, upgrading tools/machinery/software for skill developments, and providing enriching internship opportunities. An industry partner can engage with several SMKs to broaden its reach to future talents or choose a deeper engagement, depending on each partner's resources and needs. The private sector can give insight into more up-to-date career pathways and be more proactive in reaching out to SMKs and be more inclusive in hiring or providing internship opportunities. Policy level recommendations include systematic coordination and communications between policymakers and private sectors to capture data, trends, strategies, and opportunities for more robust and thorough programs that engage the industry as partners in improving the quality of SMK graduates and preparing them for the workforce. Entry points can be designed to engage the private sector interested in collaborating with SMKs, with an online platform that clearly outlines different engagement models, roles and responsibilities, and contact details. The private sector should easily access information about the Super Tax Deduction, with dedicated training organized online and offline to assist the private sector in understanding this incentive. The private sector should be engaged in upskilling and reskilling SMK teachers, providing industry experience and perspective. The SMK curriculum should have more emphasis on soft-skill development, integrating soft skills development in a structured way with existing subjects as projects or extracurricular activities. School level recommendations include being proactive in reaching out to
Classification
USAID DEC