Indonesia Urges a Skills-Based Labor Market to Enhance Competitiveness

  • 06 Agt 2026 10:55 WIB
  •  Voice of Indonesia

RRI.CO.ID, Makassar - The Indonesian government continues to strengthen the skills-first labor market to enhance workforce competitiveness while addressing the ever-evolving needs of the industry. This policy is expected to reduce the gap between the competencies of the workforce and the demands of the business world amid the changes in the global labor market.

The Minister of Manpower, Yassierli, said that mastery of skills has now become the main factor needed by the industrial world. The statement was made during a dialog session of the XXXV National Coordinator Work Meeting (Rakerkornas) of the Indonesian Employers Association (APINDO) 2026 in Makassar, South Sulawesi, on Tuesday, August 4, 2026.

"The current job market is looking for skills, and I am sure APINDO also agrees that Skills First is one of the keys to staying competitive," Yassierli said.

According to him, the demand for industry is growing faster than the availability of the workforce with the necessary skills. He revealed that more than 80 percent of companies in various countries still face difficulties in obtaining workers with the right competencies, while around 36 percent of workers experience skills mismatch, which is a condition where the skills possessed do not meet job demands.

"The reality on the ground proves that formal education and academic qualifications on paper are no longer an absolute guaranty of a person's actual competence," he said.

To address these challenges, the government encourages skill development thru modular learning and micro-credentials, expands the implementation of Recognition of Prior Learning (RPL), and urges companies to prioritize competencies in the recruitment process over mere academic qualifications.

The government hopes that collaboration with the business world, including APINDO, can accelerate the realization of a labor market that can match industry needs with workforce competencies. This step is expected to strengthen the competitiveness of Indonesian human resources while also enhancing national economic resilience amidst the dynamics of the global economy.

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