Indonesian Political, Business & Finance News

Behind the Diploma, There Is Competence

| Source: ANTARA_ID Translated from Indonesian | Social Policy
Behind the Diploma, There Is Competence
Image: ANTARA_ID

The NTB provincial government is preparing 400 subsidies for Level 2 certification from the Lembaga Sertifikasi Profesi (LSP) for SMK students until June 2026. NTB Governor, Lalu Muhammad Iqbal, stressed that the programme is designed so that graduates not only obtain a diploma but also a competence certificate recognised by industry. The move may seem simple, but a closer look reveals it touches the root of long-standing challenges in vocational education in the region. For years, SMK graduates have often found themselves in a paradox: they are prepared to be job-ready, but when applying for work, companies demand formal proof of competence in the form of a certificate. Certification is not cheap. For some students from farming, fishing, or informal worker families in Lombok and Sumbawa, the cost of the competency test can be an additional burden after daily education costs. This 400 free-certificates programme is not merely a numbers exercise; it is a symbol of a shift in education policy from simply graduating to ensuring competitiveness. Data from the Central Statistics Agency (BPS) in recent years show that the open unemployment rate among SMK graduates nationally remains relatively high compared with other levels. This serves as a warning that the vocational system has not yet fully aligned with labour market needs. In NTB, the challenge feels real. The demographic dividend is underway. The productive-age population is far larger than the non-productive age. If not managed, this dividend could become a social burden.

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