Indonesia’s economy is maturing at a fast pace but a stable economy alone cannot ensure prosperity and eradication of unemployment. Recent statistics show that there is a mounting skills gap among the country’s labor force. For example, most Indonesians who hold managerial posts have overseas degrees, while local degree holders are mostly found in low-skilled jobs with lower wage. There is a strong need to improve educational standards in order to narrow such gap.
This sentiment has also been echoed by various international organizations. Asian Development Bank has identified education as a crucial factor in Indonesia’s transformation from middle- to high-income economy. International Labor Organization (ILO) has emphasized on the importance of vocational training to keep up with the changing market requirements.