Seizing Demographic Dividend: Reshaping Vocational Education Relevance within Indonesia Societies

Abstraksi

Indonesia will gain its demographic dividend from 2020 to 2035 and reach its peak in 2030 where 64% of the population is in productive stages (National Development Planning Agency, 2017). Demographic dividend, if not followed by productivity-inducing policy, have the potency to become a burden as there will be a high percentage of youth unemployment that could lead to severe security risks and increase poverty (Bloom, et al., 2003). Moreover, Indonesian labors education level mostly still falls in the elementary to junior high school (Dhakiri, 2019), which reveals Indonesia main challenges to catch up with competency level in advanced economy countries as demand for labor-intensive works is vastly declining (UNFPA, 2014). Technical Vocational Education and Training (TVET), acknowledged for its capabilities to produce occupation-based skilled workers, has been one of Government of Indonesia (GOI) key strategy to reduce unemployment rates (MOEC, 2019). It will also become the source of Indonesia sustainable economic growth in the future where knowledge-based economy predicted to be on the rise (ADB, 2014). However, Indonesia TVET program has faced numerous challenges: the majority of TVET facilities are privately owned (MOEC, 2017) (MOM, 2017), have not been accredited and suffered from poor quality. This situation is commonly found in developing countries, where TVET has also been affiliated with inferior social status, as students are choosing vocational schools as their last choice. Moreover, there is an assumption within students that TVET is their final education, proven with a low percentage of graduates continues their studies or taking professional pathway (Agrawal & Indrakumar, 2014) (Bagnall, 2000). Vocational education then treated merely as a gate towards employment rather than the beginning of a lifelong learning. This condition is problematic as market demand is continuously changing and requiring higher cognitive and problem-solving skills within their employees (Spence, 1986) (Newhouse & Suryadarma, 2011) (World Bank, 2009). Most students enrolled in vocational schools also attain lower academic score than those who are admitted to general schools, which made them less favorable to companies and hired merely as second-class labors. This finding further indicates that the administrative system that monitor TVET programs is still inadequate while teachers or trainers are still incompetent in helping students to cope with their deficiencies (ADB, 2015). This condition differs from TVET facilities found in Germany and Switzerland, two countries with distinguished vocational systems. In these countries, most of TVET facilities are public facilities that underwent frequent assessments from trade union and governments. Both parties constantly collaborate to review TVET certification standards and curriculum to be relevant to current market demand (Brauns, 1998) (Deissinger, 1996). Moreover, TVET programs in these countries have been integrated into the national long-term plan and have received significant support from the government, as seen from substantial financial incentives that were given to related industries and the establishment of separate TVET division within government body to supervise TVET training methods (Cantor, 1985). GOI has given considerable effort to improve TVET quality, depicted in the Presidential Instruction, that emphasizes the growing importance of TVET system and collaboration with related ministries (Presidential Instruction, 2016). Following this instruction is the introduction of vocational education revitalization consists of various enhancement plans such as TVET curriculum evaluation, accreditation enhancement and trainer certification (MOEC, 2016). GOI has modified the curriculum where 70% of current TVET program will be based on practice, both in teaching factories and in companies, to enhance students’ practical skills. This program is reinforced by link and match scheme, introduced by Ministry of Trade (MOT), where TVET students will be allocated to selected companies whether through training programs or direct hiring programs (MOT, 2017). Moreover, MOEC has initiated 3 in 1 program which consists of training - competency certification - working placement from a national or international establishment. To improve the instructor’s quality, international internship and exchange have been established while experienced trainers with industrial background have been included in TVET programs. However, strategies to increase industries involvement through incentives is still absent and national budget allocation towards TVET programs is still comparatively lower than general education. There are opportunities to further integrate TVET as part of provincial economic strategies as TVET development is under the provision of provincial government, an impact of GOI increase attempt for decentralization (ILO, 2013). Indonesia also has established decree to increase budget allocation to villages and rural areas, which can be beneficial to improve the quality of education especially in the rural areas (Bima, et al., 2018). Local governments projects, particularly projects that exhibit economic potential but has not sufficiently developed, should be integrated into TVET programs by incorporating cultural and social values: for instance, new initiatives on improving local tourism and creative industry. Moreover, the future curriculum should implement case study and problem-solving assignments that are receptive for creativity and cooperation to enhance the employability and flexibility of graduates rather than limiting their knowledge to certain job or skills only (MOEC, 2018). These capabilities become pivotal as issues in sectors such as tourism and creative industry become more complex and require collaboration with other sectors. It is then critical to ensure that promotion and information dissemination regarding industrial demands and government economic roadmap have been well distributed to both local government and societies, especially in areas where vocational facilities still scarce. TVET should be better promoted both among students and parents with broader coverage that includes minorities groups, lower economic households, school dropouts, and people with disabilities. In order to spread the information, GOI could utilize social media and make use of digital campaigns. It is essential to analyze the effectiveness of current marketing strategies, especially on reaching a wider audience and on disseminating information regarding demanded skills and employability along with its effectiveness to facilitate link-and-match programs. Finally, there is still an inadequate number of scholarships devoted to TVET graduates as reflected in the endowment fund for education that is still restricted for higher education development and still excluding scholarship for vocational studies and professional training (Ministry of Finance, 2016).