This report analyzes job market trends in Indonesia, provides an overview of the transition to work for Indonesian youth and explores the potential reasons for the observed difficulty and the consequences for the education sector, especially as it relates to senior secondary education and the training system.
he best way to improve labor market outcomes for youth is to prevent early drop-out. There is a need to improve cognitive skills of students before they reach senior secondary education. There is significant evidence to argue against a large supply-driven expansion of vocational schools. The focus should be on the quality of instruction, broadening the skill base and improving quality, exploring alternative modes of delivering vocational education, and increasing linkages with the private sector. Improve the capacity of the nonformal training system to compensate for the lack of skills, as well as provide a viable way to train unskilled workers and retrain and upgrade skills for educated workers: Entrepreneurship programs may be a viable way to assist youth to improve earnings prospects, but they are not substitutes for providing adequate and relevant skills for the labor market