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close this bookPolicy Development and Implementation of Technical and Vocational Education for Economic Development in Asia and the Pacific - Conference Proceedings - UNESCO - UNEVOC Regional Conference (RMIT, 1997, 520 p.)
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View the documentThe Role of Technical and Vocational Education on the National Economic Development of Cambodia and that of the Greater Mekong Subregion Economic Growth Zone
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View the documentUNEVOC's Focus and Approaches to Address Current Trends and Issues in TVE in Asia and the Pacific
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View the documentTechnical and Vocational Education and Training: Towards the 21st Century
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View the documentA Plan to Improve and Coordinate Skills Training in Indonesia
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Open this folder and view contentsEmerging Directions in the Training of Technical and Vocational Teachers and Trainers - Indonesia
View the documentThe History of the Preparation of Teachers for Vocational Education and Training at Griffith University
View the documentTechnical Education for the Hi-Tech Era

A Plan to Improve and Coordinate Skills Training in Indonesia

Presented by:

Achmad Suwarna
Director of Technical Education Development Centre
Bandung, Indonesia


Royal Melbourne Institute Of Technology
Melbourne Australia
11 - 14 November 1996

Prepared by:



The year of 2020, as we all know, is the year of all APEC member countries to sign schedule of commitment for all trade commodities. Trade liberalizations within the APEC area will be applied without any quota and tariff at all. Obviously this situation will create light competition among the APEC member countries. The competition will be accelerated by the phasing of WTO, NAFTA, ECM, AFTA, as well as through the technological application of scientific discovery such as transportation, production and communication technologies.

Meeting the challenges associated with these conditions will certainly requires potential resources such as natural resources, capital resources, man-made resources (technology) and human resources. Only human resources are our most valuable assets because they are the only active ones, others are passive. Thus, well-educated human beings have pivotal roles in meeting the challenges. Education and training can and must play major roles in developing well-educated workforce.

At the same time, the current education system was not in a good position to support the demand of well-educated and relevant workforce to meet the challenges. Being aware of these, the Minister of Education and Culture, Prof. Dr. Ing. Wardiman Djojonegoro introduced new policy, namely called “LINK and MATCH”. This policy has led so shift is being conceptualized, operationalized, and pilot tested. Examples of the operationalization of policy shift in vocational educational education, not necessary all, are the introduction of Pendidikan Sistem Ganda (PSG), Competency-Based Training, establishment of Council for Vocation Education at the National, provincial, and school levels.

The test of this short paper will detail the challenges, background of LINK and Match policy, LINK and MATCH as a basis of policy shift, policy shift, current progress in the operationalization of policy shift and future policy directions.

Challenges Ahead

Indonesia is facing challenges both internally. Internal challenges is meant the Challenges within Indonesia. Likewise, external are forces and trends coming from abroad.

Internally, several challenges are already underway. First, slowly and surely, economic structure is shifting from agriculture to industrial and service sectors. The implication for human resource development is clear. Indonesia must develop a skilled, flexible and technology-literate workforce to support industrialization.

Second, it is worldwide known that high quality of labor force are the most valuable asset of the nation. Looking at the level of education for Indonesian labor force, one can very easily conclude that the quality of labor force in Indonesia is still low. Thus, increased education and training is required for Indonesian labor force.

Third, existing education and training institution are fragmented and are not very easily linked to each other. Articulation among them are weak, and thus it is inefficient. In addition, interfacing between education and training in our school-based systems has become isolated from the world of work, therefore the gap between them are getting wider and wider. This will obviously create oversupply workforce in some areas and at the same time create undersupply for the other areas.

Fourth, the skill formation is probably the most crucial challenge. Currently, there are many different, unorganized, uncoherent and unstandardized vocational education and training players throughout the country. This leads to difficulty for vocational education and training to follow because programs conducted by those training providers are mainly derived from existing standard. Interface between vocational education and training systems with the world of work systems is not clear. Obviously a solid National Training Board, Competency Based Training Standard and other supporting policies are needed for the future.

Externally, like many other countries, Indonesia is facing international competition. Trade liberalization will increase competition among the nations. This will have a major impact on many Indonesian industries. Some industries must either change or wither. Others have the potential major expansion, if they take the opportunity to improve the products through increased productivity, worker flexibility, and quality improvement. This world-class economy obviously requires a world class workforce. At the same time, competition will be accelerated trough the technological application of scientific discovery. Again to be equal to such competition, Indonesia requires flexible and technology-literate workforce.


Indonesia is undergoing new direction in its long range national development plan. During the First Twenty Five Year Development Plan (1969 - 1993), natural and capital resources were used as prime movers for national development. However, natural and capital resources alone were not enough. To compete with international challenges such as global market agreement, rapid technological development and increased human resource quality of neighbouring countries, it is realized that high quality and dynamic human resources are badly needed. Obviously the would-be high quality and dynamic human resources should be well-educated and well-trained.

Therefore, during the Second Twenty Five Year Development Plan (1994 - 2018), human resources development will be put in high priority. Consequently, education and training should support this priority and should be related to the overall national development plan or will bee seen as irrelevant in the eyes of Indonesian society.

This means, education should become the bridge between individuals and their roles society. Education is supposed to provide smooth transition from school to work or to some other roles in society. Education is not for the shake of education, but education should be related to other national issues such as economic, social and technological development. For this reason, there is a need for fundamental review of the current VOTEC system about its basic functions, operations and organizations.

Elsewhere, it has been cited that the enduring problem domains of vocational technical education (VOTEC) include program quality, labor market relevance and individuality suitability. At the same time, VOTEC are also challenged to contribute to the current and future economic strengthening trough educating and training of a young workforce, become an increasingly effective and efficient dimension of a comprehensive human resource development system and become more responsive and even anticipative to the ever-changing environmental forces and trends influencing VOTEC. Indeed, these rapidly changing environmental forces and such as economic and employment forces, demographic forces, and technological development, to mention just a few, require a very different well-educated and well-trained workforce than VOTEC are now producing.

The Existing situation of VOTEC in Indonesia is unable to cope with those enduring problems and to face those challenges because of several reason. First, the historically grown tradition of “School-based system” of VOTEC in Indonesia is a very isolated one and is no longer appropriate to face the present and future challenges. Second, limited funding to operate VOTEC programs is not derived from nationally recognized standards, the future generations of VOTEC are not likely to differ from the current array.

Indonesia must have a system, where both new entrants to the workforce and existing workers can obtain the skills that the productive sectors of the economy really need and can have certificates to attest to those skills. Indonesia does not have such a system now. We can not have so many people locked out of skills formation. The Figure below shows the magnitude of the need. There are about 60 million workers now who will still be in the laborforce in 20 years from now. They must be able to train and retrain. New entrants to the labour force must also be able to get skills relevant to industry to assist them in their search for good jobs. The present system treats existing workers differently from new entrants and generally, restricts their access to certificates and qualifications. The formal vocational education system has not generally been using work-related competencies as the basis for its programs.

Labourforce Overview in Indonesia 1994

*) Data: 1994
**) The students from SMK are mainly in this category as few proceed directly to Higher Education. These are 355,000 SMK graduates each year. Of these 62% (221,000) come from Private SMK and 38% (134,000) come from Government SMK

Given the above enduring problems and challenges, it seems clear that restructuring VOTEC is not accomplish the requires restructuring. The problem is so structural and cannot be solved by piecemeal tinkering and thus fundamental changes are needed. This requires new VOTEC systems as well as new habits of mind and heart of those responsible for VOTEC System.

Link And Match As A Basis For Policy Shift

The basis so shift the past to future policy in vocational education and training is LINK and MATCH policy. Under the policy of LINK and MATCH, vocational education and training should LINK and MATCH is meant that vocational education and training should LINK and MATCH with other external systems such as economic, technological, social and other systems.

Under the policy of LINK and MATCH, and recognizing the need for revitalization of vocational and education and training, the Indonesian government is undertaking policy shift e.g. from “School-based system” to “integrated school and industry-based system”, meaning that partnership with industry is required for VOTEC and thus experiential learning will be emphasized. This new restructuring will requires changes in philosophy and operations of current vocational education and training in Indonesia. Thus, fundamental review of the current VOTEC system is required.

Policy Shift

The following policy shift is derived from the challenges and provides a vision for accelerating the reformation of vocational education and training in Indonesia. The policy shift bellow serves as a foundation for reformation, a template for strategic planning, and a benchmark for progress in vocational education and training.

Figure 1

Key Policy Shift in Vocational Education and Training




A supply-driven system based on a large social demand


A demand-driven system guided by labour market signals


A school-based system delivering 'diplomas' upon examination


An education and training system delivering 'competencies' in accord with nationally recognised standards


A school-based system with minimum flexibility in delivery


An education and training system with multiple entry/ exit points and flexible delivery


No official recognition of prior learning


A system which explicitly recognises skills and 'competencies' wherever and however they are obtained


A school-based system with a 'study-program' orientation


An education and training system oriented towards officially recognised professions and trades


Education and training focused on the formal sector


Education and training both for the formal and informal sectors


Separation between education and training


Full integration of education and training from a cognitive science perspective


Centralised system of management


Decentralised system of management


Institution/organisations fully supported and run by the central government


Self supporting and self managing institutions or organisations with partial support from the central government

The list below sets out the new policy directions as written in Figure 1, and serve as basis for action plan:

“A demand driven system, guided by labour market signals”

1. The development of competency standards is a guarantee that industry will have a major voice in vocational education.

2. The National Council for Vocational Education and Training will ensure that the policies and priorities of the system have industry input and relevance.

3. At the provincial level the Provincial Industry Training Bodies will ensure that there is a strong industry voice.

4. SMK would develop performance indicators in terms of industry involvement in its programs. SMK, both through its School Council and through the provincial office would be measured in terms of its performance agreement.

“An education and training system delivering competencies in accord with nationally recognised standards”

1. The standards, curriculum and assessment arrangements proposed in the Report are designed to ensure that the vocational education and training system both deliver industry determined competencies

2. The skills passport is designed to provide workers, and prospective workers with a list of the skills they have achieved. Each skill is certified by a recognised body. The passport encourages lifelong learning because people can. keep adding new skills.

“An education and training system with multiple entry and exit points and flexible delivery”

1. The proposed competency based approach will provide modular courses which facilitate entry and exit.

2. SMK will gradually develop a market for training which will help them to diversify and meet the needs of existing workers.

3. There will be opportunities for bridging courses and training and for school 'stop-outs' to return to full-time or part-time study.

4. On-the-job and off-the-job training will both be used to meet the needs of industry.

“A system for explicitly recognising skills and competencies wherever and however obtained”

1. The assessment arrangements proposed in the Report allow for skill assessment to be undertaken in a variety of settings and with industry input into both the policy and the practice of assessment.

2. The proposed Skills Passport allows students and workers to build up their skills and have them formally recognised without the need to complete formal academic courses.

“An education and training system oriented towards officially recognised professions and trades”

1. The use of competency standards as the basis for all SMK programs will achieve this end.

2. Sistem Ganda will be enhanced and made more relevant to industry through the use of competency standards which are industry determined.

“Education and training for both the formal and informal sector”

1. The “informal” sector of the economy involves a whole range of individual workers, including contract labour and small groups. Skills development in this sector will be a gradual process but the development of short courses and modules will assist this group in gaining access to appropriate training.

2. The out-of-school training providers are also known as the “non-formal” sector of education. They will benefit greatly from the proposals in this Report. For the first time they will have access to an industry recognised system of credentials (skills passports) and teaching and learning materials. This will give them quality assurance as a basis to develop their businesses.

“Full integration of education and training”

· Articulation between courses and streams will provide better opportunity for transfer.

1. Accreditation of formal courses will provide a quality assurance which will assist integration of vocational and general education.

2. The Report adopts a broad definition of skills and competencies so as to include cultural understanding and the necessary knowledge which underpins skill formation.

3. The support for a number of high technology training centres reinforces the status of skills formation. The fact that some university graduates may need to supplement their university learning with more practical skills will assist to integrate education and training as 'equal' concepts.

“Decentralised system of management”

1. The proposal for a new structure for vocational education and training is designed to provide national leadership and policy development with a major industry input. It will also empower the Provincial/ regional authorities to implement programs with a minimum of centralised control. Central control will be strategic rather than operational.

2. he proposals are flexible so that each industry can develop standards and curriculum to suit its own needs, rather than to have inflexible arrangements which cover all industries.

3. The proposal that SMK develop performance agreements which relate to their own needs and prospect is a major element of decentralisation and flexibility. School Councils would be involved in the development and monitoring of Performance agreements and would thus have a greater role in school management.

“Self supporting and self managing institution/organisations with partial support from central government”

1. Empowering SMK to make their own management and professional decisions will assist them to greater self support.

2. The proposal that SMK gradually develop their commercial provision of training on a fee for service basis will provide SMK with another source of income.

3. The devolution of responsibility to SMK through performance agreements will shift the focus of government involvement from inputs to outputs. Provided an SMK delivers the agreed results then the government will be less concerned with how the money is spent.


The above policy shift has led to an implementation of Pendidikan Sistem Ganda in three-tracks and establishment of National Council for Vocational Education as a manifestation of demand-driven system.

1. Pendidikan Sistem Ganda (PSG): Track I, II, III

Basically, PSG is a joint school-industry program that integrate systematically a program of theoretical skills in the school and a program of practical skills in industry. This means, the industry will play important roles in VOTEC.

It has been quite long time that the key element driving the quality of VOTEC is missing e.g. active involvement of the world of work. The view that the school can do everything for the students is no longer appropriate today. The school can only teach basic vocational skills, while work attitudes and behaviours may appropriately be learned by experiential learning from other sources such as industry and commerce. In industry or commerce, student can learn productive occupational skills and more importantly employability skills. Industry or commerce thus now becomes part of education system. Industry or commerce, because of its nature as a profit organization, is a very dynamic institutions where the students can learn many things. The school are typically conservative institutions and very difficult to keep up with the latest development, particularly with regard to facility.

For this reason, PSG has been selected as a future system of VOTEC. The transition from school-based system to PSG system requires fundamental changes in several key dimensions of the school, such as programs and services for students, roles and responsibilities, rules and regularities, and accountability, to mention just a few. The unique of PSG is that real-world learning is infused to instruction and therefore experiential learning is imperative.

At the present time, PSG is implemented in three-prong or three track parallel effort as follow:

Track I is defined as a rapid broad based introduction of PSG ideas and philosophy by “doing” PSG in as many locations as possible. Currently, from 721 state funded SMKs, 500 of them are operating PSG e.g. 247 SMKs started PSG in July 1994 and another 253 SMKs started in July 1995. It is hoped that virtually, all 721 SMKs will run Track I in 1996.

Track II, called long-term system development for PSG, is aimed at formalizing the long term structure and content of PSG by determining is systematic and methodical fashion what can be expected to an operational model for PSG in Indonesia. Five SMKs, namely STM 4 Medan, STM Karawang, SMIP Jakarta, SMEA 1 Semarang and STMP Surabaya, are as a pilot project with the assistance from German Government. In addition, 10 BUMNIS, and probably several SMKs under new Australian project can also be classified as Track II.

Track III is defined as an initiative of MOEC to establish Technical Skill Centres aiming at producing local skilled workers for industries that can already absorb them. At the same time, these centres can also function as training supplement for students of PSG. Such centres would ultimately be a private sector concern. Under this Track III, two training centres will be established very soon, namely German-Indonesian Institute and Batam Training Centre. Others may be established after careful feasibility study.

2. National Council for Vocational Education

The development of an industry driven system based on competencies requires new structure to give industry a substantial voice in policy and management. Competency standards development must be industry lead. To achieve this, new national, provincial, and school structure are required. They would also ensure input from all relevant ministries.

a. The National Council for Vocational Education

The National Council for Vocational Education has the following functions:

1) Propose recommendations/considerations to the Minister of Education and Culture on the policy, strategy and to program of education and training.

2) To identify and to encourage cooperation between the business/industrial worlds and training and educational institutions as well as the other related parties involved in educational planning, execution and assessment.

To implement those roles, the National Council for Vocational Education is charged with the following tasks, among others are:

1) To formulate ideas on development and improvement of vocational education and training system;

2) To formulate policies related to the implementation of vocational education and training system;

3) To increase the utilization of available resources existing in the community and

4) To develop vocational training and educational system standardization, including: occupations standards, curriculum standards, as well as evaluation and certification standards.

b. Professional Field Bodies

Professional Field Bodies were formed to execute the functions and tasks of the National Council for Vocational Education. The main tasks of the of Professional Field Bodies are:

1) To formulate and develop occupational standards along with associated competency standards:

2) To make up and prepare the material for determining the training and educational curriculum

3) To make up and develop the systems of evaluation, certification, and marketing of the graduates;

4) To make up and develop the systems of accreditation of the educational and training institutions;

5) To formulate and prepare material to determine the policies for supervision and development of training and education system.

At the present time, 38 Professional Field Bodies have been established. They are as follow:

1. Garment

15. Food Crops, Plantation and Horticultural

28. Instrumentation

2. Beautification

16. Fishery

29. Postal Service

3. Hotel and Restaurant

17. Husbandry

30. Telecommunication

4. Building

18. Forestry

31. Mining and Gas

5. Electrical

19. Cooperation

32. Pharmacy

6. Machine Shop

20. Secretary

33. Wood craft

7. Automotive

21. Tour and Travel

34. Iron craft

8. Graphic

22. Marketing

35. Textile craft

9. Electricity

23. Accountancy

36. Leather craft

0. Aeroplane Services

24. Insurance

37. Porcelain craft

1. Textile

25. Banking

38. Painting

2. Shipping

26. Social Worker

3. Agricultural Mechanization

27. Food and Drink

4. Agribusiness Technology

Note: other professional groups will be build-up as needed

c. Provincial Council for Vocational Education The main tasks of Provincial Council for Vocational Education:

1) To spell out the policies and programs of National Council for Vocational Education to be executed at the provincial level;

2) To pool and mobilize the business and industrial potential to participate in the execution of the Pendidikan Sistem Ganda;

3) To formulate and submit recommendations for vocational training and educational development in the respective province;

4) To execute vocational skill competitions at provincial level;

5) To promote the Pendidikan Sistem Ganda in the respective province.

d. School Council

The school Council is charged with the role of school partner in the execution of the Pendidikan Sistem Ganda in the Vocational Secondary School, with the main following tasks:

1) To coordinate activities of schooling material adjustment in school and partner institution (industry/company);

2) To be the partner of Vocational Secondary Schools in approaching and inviting the business/industry to participate in partnership to carry out the Pendidikan Sistem Ganda;

3) To be the partner of Vocational Secondary School in formulating and signing agreement between the Vocational Secondary School and the partner institution to carry out the Pendidikan Sistem Ganda;

4) To monitor the execution of the Pendidikan Sistem Ganda whether in the Vocational Secondary School or in the partner institution (industry/business)'

5) To motivate Vocational Secondary School and partner institution (business/industry) in the execution of the Pendidikan Sistem Ganda;

6) To form the certification and testing system as well as to create feasible conditions for execution of the certification and testing system in line with the needs of the job market;

7) To market the graduates of the Pendidikan Sistem Ganda.


To consider future policy directions in Vocational Education and Training and to prepare a Report on steps which can be taken to implement the policy of Link and Match, the Minister of Education and Culture established a Task Force in early 1995.

The establishment of this Task Force is to review Vocational Education and Training policy as part of an on-going process within MOEC. Since 1993 the Ministry has been pursuing a policy of improving the external efficiency of its various education subsystems. The policy was called LINK and MATCH.

A Working Group and a Steering Committee were established to ensure that industry representatives and representatives from other relevant Ministries were fully involved. The members of the Task Force are representatives from various industries, other ministries, Chambers of Commerce and Industry, National Associations, National Development Planning Agency, and Rectors/Deans of Universities, Directors of Polytechnic, Members of Parliaments, and staff of Directorate General of Primary and Secondary Education as well as Directorate of Higher Education, Ministry of Education and Culture.

An Interim Report: “Skills Toward 2020” was submitted to the Minister of Education and Culture as the outcome of the Task Force. The Report concluded that MOEC, other departments and industries will only fulfil their Vocational Education and Training obligation if they do so within a common and shared framework.

The Task Force has made wide ranging proposals. There are proposals for administrative structures to give long term effect to an industry driven system and for a move to training based on industry competency standards.

The summary shows an evolving process. It is built on cooperation between industry and all government ministries. The evolving process envisages that initiatives will commence within MOEC and that new arrangements will involve consultation with industry and other ministries. These parties would then be able to use the standards, teaching and learning materials, assessment arrangements and skills passports in their own workplaces and training programs. Given the wide industry support, which these proposals have received, it should be possible to reach a consensus on such issues and to see permanent national structures established as a result of consensus.

Competency Based Education and Training

This is at the centre of the proposals. Industry must be involved in setting competency standards; teaching and learning materials of high quality would be developed with industry support. Assessment guides should reflect the standards. Assistance would be given to all course providers, including industry, so that they could use these in the development of their training programs. A new form of competency certificate, a skills passport, will be developed for use by all training providers. Skill passports will give employers a clear statement of the skills of workers and those seeking jobs.

New ways of gaining and upgrading skills

There is a need to ensure that students and workers are not locked out of training opportunities. The present system is too rigid. Flexibility can be introduced through the recognition of prior learning, bridging training/course and by giving young people a good grounding of basic skills and knowledge on which to build through their lives. Making skills training directly relevant to the needs of the productive sectors will also enhance on-the-job learning. Increased numbers of Sistem Ganda students and apprentices will also assist in providing industry with the skills it needs.

A quality approach for efficient delivery

Formal quality improvement techniques such as Total Performance Management and benchmarking are now part of the daily operations of most successful enterprises. The same techniques are required in education and training providers, who must also move to a client focus, and to an efficient delivery of services where and when they are needed. SMK, both public and private, will receive training in these management improvement techniques. Performance Agreements with SMK will empower them to serve their local industries efficiently and better meet students needs.

A competitive market for education and training

The development of a competency based system and skills passports eliminates the monopoly which formal education providers now enjoy over skills certification and awards. This means that all providers, public, private, industry, formal and non-formal will be able to give their students/clients access to industry recognised skills. Quality teaching and learning materials will be available to all of these providers. The role of government can gradually change from being a direct provider of Vocational Education and Training to being a sponsor and supporter of self managing institutions.

Pathways to Competency Certificates

· Certificate of Competency could be achieved through one or a mixture of each process.

· STTB/Diploma could be achieved either from formal or non-formal courses and on-the-job training through Recognition of Prior Learning (RPL).

· Transferability between pathways is done through RPL, bridging courses/ training.


Ministry of Education and Culture has embarked on major policy shift to improve its senior secondary system for vocational education and training. LINK and MATCH is the basis for policy shift. The very essential policy shift in vocational education is basically changing from supply-driven to demand-driven. Several strategies have been adopted to implement the policy shift. Pendidikan Sistem Ganda and the establishment of the Council for Vocational Education at national, provincial, and school levels, are the most noticeable. In addition, to facilitate further development, the Minister has instituted a Task Force to consider future policy directions and to prepare a report on steps which can be taken to implement the policy “Link and Match”.

An Interim Report “Skills Toward 2020” has been presented to the Minister of Education and Culture in December 1995.

The proposal in that report have received wide support from industries and other departments. However, to complete this report, we are probing responses and inputs from other than Task Force members such as the government bureaucrats, industries, institutions, training providers, and teachers.

Appendix 1

An Overview of Indonesia's Vocational and Technical Education and Training System.

Formal Education

The education system in Indonesia has the following components. There is a six year system of primary education. This is followed by three years of junior secondary education. Up to this level education is compulsory, although there is not yet full compliance with this requirement.

Upper secondary education is delivered in two types of institutions. The 'academic' stream is delivered through SMU, formerly called SMA. The alternative to the academic stream is the technical/vocational stream is delivered through institutions which are collectively known as SMK. However individual SMK specialize in particular areas and are known by their specialist title. The two largest groups of SMK are business studies/economics which known as SMEA and the metal/automotive/building etc. areas which are known as STM. There are other specialist institutions for agriculture, shipbuilding, Aircraft, Graphics, Chemistry, textiles, arts and craft, etc.

SMK students undertake three year full-time courses. Virtually all of the students are in the 16 to 19 age group although some SMK cater for other groups by offering non-formal courses on a full-cost recovery basis.

The main infrastructure supporting the Vocational and Technical Education and training system consists of 703 public schools and 2982 private schools, with 36,497 teachers of public schools versus 69,259 teachers for the private schools. Of the 703 public schools there are only 181 technical schools while the remainder belongs to the other vocational schools. In the private sector there are 889 technical schools, while 2,093 private schools belong to the other vocational schools. At present about 1.5 million students are enrolled in Vocational and Technical Education and Training; about 1 million through private schools and some 0.5 million through public schools. In 1993 the system produced about 355 thousand graduates; 134 thousand from public schools and 221 thousand from private schools.

Higher education is the remaining sector of formal Education. It has two tracks; the first consists of academic programs leading to bachelors, masters and Ph.D. degrees. The second track is called Professional (Higher Vocational) Education; it leads to diplomas of 1, 2,3, and 4 years length. These diplomas have a clear vocational focus. They can be followed by special postgraduate programs. Universities, Institutes and Higher Schools offer academic degrees as well as diplomas; Polytechnics and Academies offer only diploma. Although the polytechnics offer courses in area similar to SMK competitive selection means that the majority of the polytechnic intake is from the SMU system.

The system described above are under the responsibility of the Ministry of Education and Culture (MOEC) MOEC provides funding and policy direction to the government institutions and controls in the registration, examination and other coordinating functions for private institutions. Some limited government support is provided to private institution.

The Vocational and Technical Education and training system is supported by six major Development Centres involved in teacher training and upgrading, assistance in curriculum development and general support for schools. There are three centres - in Bandung, Malang, and Medan - supporting the technical education. The other three centres are located in Sawangan, Cianjur, and Yogyakarta, supporting Business and Commerce, Agriculture, and Arts and Music education respectively. The centres in Bandung and Sawangan have a training capacity of 720 student places per year. All others have a training capacity of 480 students places per year. There are various ways to become a Vocational and Technical Education teacher. Among others, ten Teacher Training Institutes (IKIPs) at the tertiary level produce Vocational and Technical Education teachers. The IKIPs in Yogyakarta and Padang are particularly well suited for this purpose. Well equipped workshops and other training facilities have been developed to provide teachers with practical hands-on experience.

Non-formal Education

Public Training Centres

There are a number of government departments, other than MOEC, which are involved in training. The Ministry of Manpower (MOM or Depnaker) runs over 156 training centres (BLK) which are offering short-term (under one year) courses to job-seekers. Now about 30 BLKs are involved in the implementation of a three year apprenticeship scheme. This apprenticeship is structured as alternating training with blocked phases or periodical day-release in the BLK or an Company-training centre, and on-the-job training within the production plants. The certification system allows trainees to end the training after each year.

Other ministries also run training centres and SMK which relate to their areas of interest, for example the Ministry of Tourism, Post and Telecommunication runs a number of institutions at the SMK, training centre and higher education level.

Vocational Courses (Private)

Thousands Vocational courses run by private, provide short courses training for the “informal” sector to a limited degree of competencies.

Industry Training Center

Industry-based training has developed rapidly since the mid-seventies due to the rapid development of service activities and the acceleration of the industrialization process. Recently a collective concern starts to appear among companies to set up A Company Group Training to promote training for their worker.

A company group training unit (CGTU) is a training organization established by a group of companies to promote training and assist member companies in all aspects of the training process. CGTUs would generally be formed by medium-sized companies grouped by industrial sector, geographical orientation or technology

The establishment of CGTUs aims at self-sustaining and self-expanding mobilization of industry in providing suiting their own needs. An attempt, to introduce market regulated training functions by self-administration. Each CGTU is expected to serve about 40 member companies with an estimated total employment of approximately 4000 workers/employees and to administer the related activities regular staff under the umbrella of KADIN is appointed.

A total of 75 CGTUs established in the tree participating provinces (15 in North Sumatera and 30 each in East Java and West Java), covering about 3000 firms with approximately 300,000 employees.

Appendix 2

Structure of Indonesia Labour Force by Education Level Completed

Education Level






1. No Schooling






2. Incomplete Primary School






3. Complete Primary School






4. Complete Junior Secondary School






5. Complete Senior General Secondary School






6. Complete Senior Vocational Secondary School






7. Higher Education Diploma






8. Higher Education Strata 1






Total (%)






Sources: 1) Sensus Penduduk, 1980; 2) SUPAS, 1985; 3) SAKERNAS, 1987 4) Sensus Penduduk, 1990; 5) SAKERNAS, 1994.


Note: SD - Sekolah Dasar, SLP - Sekolah Lanjutan Pertama, SMU - Sekolah Menengah Umum, SMK - Sekolah Menengah Kejuruan, VC - Vocational Courses, VTC - Vocational Training Center, ITC - Industrial Training Center, FITC - Further Industrial Training Center, SP - Specialist