Revitalize apprenticeships
Policies Involved
Challenge
Fresh graduates seeking employment in the technology sector lack real-world skills and experiences sought after by employers. Current educational programs often do not provide enough practical training to solve real-world challenges as well as business and organizational skills. As a result, it creates difficulties and delays for newcomers to thrive and excel in the workplace. Aside from a university degree, apprenticeships are an alternative route to the technology sector with an added element of on-the-job training experience. Although a regulation on apprenticeships exists in Indonesia, they are often conducted informally, which may lack structure and do not lead to qualifications1.
Current Policy
The implementation of an apprenticeship program is currently
regulated by the Minister of Manpower Regulation No. 6 of 2020 on
the Implementation of Domestic Apprenticeships (MoM Regulation
6/2020), which regulates how apprenticeships are being carried out
in Indonesia. According to the policy, businesses of all sizes,
formal and informal, are able to participate in an apprenticeship
program2. Successful apprentices will obtain a certificate of
apprenticeship program completion, and may take a competency test
to obtain a certificate of work competence3. Further, substantial responsibilities for apprenticeships are
placed in the hands of local governments, who are responsible for
verifying the apprenticeship agreements, approving the companies’
apprenticeship program application, and for providing mentorship
for domestic apprenticeships4.
To incentivize companies to take on apprentices,
the Minister of Finance Regulation No.128 of 2019 (MoF Regulation
128/2019) on The Facility for Human Resources Development in
Certain Competencies, the implementing regulation to Government
Regulation No. 45 of 2019, offers to deduct 200 percent of costs
incurred by companies in the implementation of their
apprenticeship programs in a number of competencies, including
digital economy5. However, digital economy apprenticeship programs are currently
limited to partnerships with vocational educational institutions
at the diploma level and technical and vocational education
training centers (Balai Latihan Kerja or BLK)6 7.
Action
Employers need to play their part in facilitating the career journey of their employees ahead of time if they want to ensure that prospective workers arrive prepared from day one. While existing regulations have offered incentives for companies to take on digital economy apprentices from vocational educational institutions at the diploma level and TVET centers, companies need to be further incentivized to absorb apprentices and graduates from other technology competency programs, such as SMKs and privately-run tech bootcamps. Current incentives should also be evaluated to determine their full impact. Although the MoM Regulation 6/2020 specifies the need for companies to provide instructors for the apprentices, apprenticeship programs should also incorporate peer learning and mentorship in its curriculum8. Partnering apprentices with both a technical expert and a business or managerial expert as mentors can ensure a well-rounded training. The mentors must undergo an appropriate ‘teach the trainer’ coaching program to be qualified to undertake the role. Meanwhile, peer learning is necessary to develop the spirit of collaboration and cooperation - both are important skills in today’s world.
Indicator of Success
- OECD. (2020). Employment and Skills Strategies in Indonesia. https://www.oecd-ilibrary.org/employment/employment-and-skills-strategies-in-indonesia_dc9f0c7c-en
- MoM Regulation 6/2020, Article 1.
- MoM Regulation 6/2020, Articles 20-21.
- MoM Regulation 6/2020, Articles 10-12, 17, 27.
- MoF Regulation 128/2019, Article 2.
- MoF Regulation 128/2019, Pages 20-21.
- TVET centers (also known as BLKs) are under the coordination of MoM and managed by local governments. World Bank: Closing the Gap between Workforce Development and Labor Markets
- MoM Regulation 6/2020, Article 3.