Government strengthens vocational training to address labour competency gap
The government is strengthening national vocational training programmes to address the competency gap between the workforce and industrial requirements, amidst changes in economic structure and technological developments.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that strengthening vocational training is essential to ensure the workforce possesses skills that meet the needs of the working world.
“This programme is a directive from the President and forms part of the stimulus for the second semester of 2026, which must be implemented effectively, precisely, and with a tangible impact on society,” Airlangga said during the Kick-Off of the National Vocational Training Programme Batch IV for 2026 in Jakarta on Tuesday.
Airlangga explained that strengthening vocational training is also necessary to ensure that investment growth is accompanied by workforce readiness.
As of the first semester of 2026, realised investment reached Rp1,010.6 trillion, representing a year-on-year growth of 7.2 per cent, equivalent to 4ng49.5 per cent of the target. This realised investment has also created approximately 1.4 million jobs nationally.
On the other hand, the national Open Unemployment Rate (TPT) has decreased to 4.65 per cent. However, approximately 67 per cent of the total unemployed—around 4.8 million people—are from the youth demographic. This condition highlights the need to strengthen workforce competency to meet industrial needs while reducing the gap between job seekers’ skills and available job types.
According to Minister Airlangga, changes in the economic structure are also driving the emergence of new competency requirements, particularly in the digital and green economy sectors. In the green economy sector, for instance, labour demand will expand alongside the increased use of renewable energy. Required professions include solar panel technicians, turbine technicians, and personnel with smart farming skills.
The government is also pushing for the development of solar power plants up to 100 gigawatts (GW), while the current national electricity capacity is approximately 88 GW. In the industrial sector, national solar panel production capacity has approached 11 GW.
“The President wants this to be large-scale, including vocational training; therefore, moving forward, we must utilise all available facilities, not only from the central and regional governments but also from the industrial sector,” said Airlangga.
The 2026 National Vocational Training Programme targets approximately 340,000 participants. 70,000 participants are allocated from the existing state budget (APBN) designed in previous years, while the remaining 270,000 participants come from the second-semester 2026 economic stimulus programme.
As of August 2026, 89,337 participants have undergone training. Meanwhile, the implementation of Batch IV is being carried out simultaneously with 12,128 participants.
Spokesperson for the Coordinating Ministry for Economic Affairs, Haryo Limanseto, stated that vocational training must be directed towards the actual needs of the working world so that the improvement of workforce competency can proceed alongside industrial transformation.
“Vocational training needs to be designed adaptively so that the competencies provided are truly relevant to industrial needs and the development of job types,” said Haryo.
He added that collaboration between the government and the business world is key to ensuring that upskilling and reskilling processes not only enhance workforce capabilities but also strengthen their readiness to face technological changes and industrial transformation.