Cover Image
close this bookCase Studies on Technical and Vocational Education in Asia and the Pacific - Indonesia (UNEVOC - ACEID, 1996, 44 p.)
View the document(introduction...)
View the documentKey Facts
View the documentExecutive Summary
View the document1. Introduction
View the document2. Economic Conditions and Human Resource Development
Open this folder and view contents3. The Technical and Vocational Education System
Open this folder and view contents4. The Development of Technical and Vocational Education
View the document5. The Integrated School Development
View the document6. Production Unit
View the document7. Institutional Partnership
View the document8. The Dual System
View the document9. Conclusion
View the document10. Bibliography
Open this folder and view contentsAppendices

2. Economic Conditions and Human Resource Development

Indonesia is entering the second long-term development in April 1994. The economic growth during the first long-term development (1969-1994) was encouraging. During the period of 1988 to 1992 the economic growth was about 6.7 percent, which was higher than the projected economic growth rate of the same period. The main reasons for the high growth is the increase of manufacture export which is supported by the growth of the construction sector, electric generator construction, transportation and telecommunication sectors. It is expected that the economic growth will have the same pattern in 1994 and 1995 and will not be less than the projected rate which is between 6-7 percent.

The economic growth in Indonesia is high, due to the support of oil in 1970. Oil exports contributed 84 percent to Gross Domestic Product, especially at the peak era of oil in 1982, while the contribution of the agricultural sector was only 13 percent and manufacture export was 3 percent. The decrease of export in 1983 up to 1986 has forced Indonesia to launch packages of deregulation, creating an economy based on the power of market. The result was the increase of non-oil export up to 24.3 percent annually, during 1986-1992, with the highest contribution of manufacture sector of about 35.1 percent in the same period. In 1992 the contribution of non-oil export was higher than the oil sector. More than 50 percent of the total Indonesian export was supported by non oil sector. The first long-term development of Indonesia has successfully solved the problems of food and clothing. The emphasis of the national development was mainly on the benefit of natural resources such as agriculture, mining, petroleum etc. which will not last forever.

For the success of the second long-term development, concentration has to be focused on the development and the utilisation of human resources to produce maximum economic growth. Indonesia has chosen industrialisation as the main alternative for economic takeoff. Its consequences is a transformation process of industrial culture orientation. To face the economic takeoff through industrialisation, the national education system should give more emphasis on science and technology. Indonesia’s major challenge is to create jobs. Increased skill level in all sectors is required to position Indonesia for industrial takeoff, scheduled to occur during the sixth five-year plan.

The need for middle level manpower in the labour force structure will continuously increase during the coming development stages, and therefore serious attention should be paid to technical and vocational education. The new guidelines of the state policy (GBHN) of 1993 has given clearly the direction of the development of the country in the future. The central development of the second long-term development (1994-2019) and PELITA VI (1994-1999) is the development of economy and human resource development. Education as the main means of the development of human resources must clearly play the role of forming the students to be the national asset. They have to be productive and earn their own living. They also should have the ability to create excellent product of Indonesian industry in confronting competition in the global market.