Skills for Competitiveness (S4C)

Indonesia has charted impressive economic growth since overcoming the Asian financial crisis of the late 1990s. It has become the largest economy in the ASEAN community with a GDP per capita of USD 3’603 in 2016. Today, Indonesia is a key player on the global stage as the world’s 4th most populous nation, the world’s 10th largest economy and a member of the G-20. Poverty has been halved since 1999 to 10.9% in 2016 (World Bank, 2017). While this is good news in principle the poverty rate decline has slowed down since 2012: 28 million Indonesians still live below the poverty line today, while 40% of the total population are considered vulnerable of falling back into poverty with incomes only marginally above the poverty line.One of the major challenges the country faces today is the structure and dynamics of its labour market. On the one hand, the 1.7 million youth who enter the workforce each year outpace the growth in the number of jobs and result in a demand supply mismatch and people ending up in informal employment. On the other hand, technological progress: the complexity and nature of skills required on the labour market are not adequately matched with the qualifications and experiences obtainable through the national skills development system and result in a skills mismatch.
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Indonesia
-6.209306
106.845652
Project duration
2018 - 2023
Financed by
  • State Secretariat for Economic Affairs SECO
  • Government of Indonesia

The project

The structure and dynamics of the Indonesian labour market poses one of the major challenges for the Indonesian economy and its future growth: the 1.7 million youth who enter the workforce each year outpace the growth in the number of jobs and the complexity of skills required are not adequately matched with the qualifications obtainable through the current Vocational Education and Training (VET) system. The Skills for Competitiveness (S4C) Programme aims to address this, is aligned to national strategies and based on clear demand from the Government of Indonesia.

The Programme has two objectives:

  • Five selected Polytechnics are efficiently managed and educate technicians/engineers in selected sectors as per the needs of the private sector. The Polys are focussing on the metal, furniture, wood and food processing sectors.
    Two outputs support this achievement focussing on the establishment of necessary management systems and processes and the development of training approaches oriented in the dual VET system. Interventions include among others the strengthening of school management capacities with focus on industrial relations, supporting the development of teaching ‘factories’ within the Polytechnics, development of a teaching approach on dual training and the upgrading and strengthening of teaching capacities.
  • The Government of Indonesia, selected sector associations and Association of Polytechnics and Industry Indonesia collaborate to develop and strengthen a tertiary dual Vocational Education and Training System in Indonesia.
    Activities aim at the establishment of a service portfolio for Poly-Industry services anchored with institutions like the Association of Polytechnics and Industry Indonesia (APII), sector associations or techno parks, supporting knowledge exchange and learning between VET system actors and contributing to overall VET system reforms.


The Programme is implemented by a Swiss Consortium consisting of the Swiss Foundation for Technical Cooperation (Swisscontact), the Bern University of Applied Sciences (BFH-CDC) and the Association for Swiss International Technical Connection (SITECO) working in close collaboration with the Centre for Industrial Human Resource Development (BPSDMI) of the Ministry of Industry (MoI) and the Ministry of Education and Culture Republic of Indonesia (MoEC).

Results 2018 - 2023

Graduates’ Competency and Employment:

  • 97.4% graduates from Kendal Furniture Polytechnic, Bantaeng Community Academy for Manufacturing Industry, and Morowali Metal Industry Polytechnic passed the competency test.
  • 60% graduates from Kendal Furniture Polytechnic, Community Academy Bantaeng, Morowali Metal Industry Polytechnic, and Jember State Polytechnic have a full-time job. Other graduates are self-employed (8%), continuing education (6%), part-time employed (3%) or freelancers (2%).
  • 54% of employed graduates work in a job directly related to the training and 32% of employed graduates work in a partly related job.
  • 84% of employed graduates earn at least 30% above the provincial minimum wage.
  • The average scale of graduates' perception of the relevance of their competencies, skills, and attitudes for work is 3.76/5.
  • The employer’s perception rates graduates’ skills, competencies and attitudes as highly relevant, scoring 4.1/5 in the user satisfaction survey.

Strengthening of school management capacities:

  • 80 training sessions on strategic planning, accreditation, quality assurance, IT development and branding;
  • 4 schools were assisted for the accreditation process of eleven (11) programs and received accreditation.

Development of practical facilities:

  • 62 workshop sessions to provide technical support around teaching factory (TEFA), occupational safety & health (OSH), testing center units, and laboratory layouts;
  • 2 TEFAs of bakery and fish canning were established in Jember. The TEFA bakery received “B” (good) accreditation and became a benchmark as a well-developed TEFA;
  • 60 staff under the Ministry of Industry (MoI)’s Agency for Industry Human Resource Development (AIHRD) educational units received general and chemical OSH certification.

Dual-teaching approach:

  • 14 curricula (3 in Bantaeng, 3 in Banten, 2 in Jember, 3 in Morowali, and 3 in Kendal) were developed or updated in close collaboration with the industry to ensure the relevance of the curriculum to industry needs;
  • 78 capacity building workshops have been conducted to support polys and industries implementing the industry-based curriculum (IBC);
  • 19 certified and non-certified facilitators involved in IBC facilitator pool coordinated by AIHRD.

Strengthening of teaching capacities:

  • 114 training courses on technical skills (95) and methodology (19) delivered for the capacity building of lecturers.
  • 31 lecturers from four partner schools completed the Peer Coaching and E-Didactic training; a key response to the rising need due to the pandemic.
  • 38 lecturers successfully passed the examination of the 1st phase of the competency assessor training, which was jointly conducted with the MoI and the National Professional Certification Agency (NPCA).

Poly-private sector cooperation:

  • Partnerships have been established with 293 companies to secure internships for students. In addition, 69 (24%) of them have provided internships continuously for three or more consecutive years since 2019;
  • 31 trainings and workshops were conducted for polytechnics and companies to establish and strengthen their partnership;
  • 231 In-Company Trainers received international certification to manage structured internship programs for the benefit of students and companies.

Strengthening dVET service providers:

  • 51 institutions and 75 individual consultants were supported to provide dVET services to polytechnics such as industry-based curriculum (IBC) development, lecturers' training, management capacity building, Career Development Centre (CDC), competency test, and Occupational Safety & Health (OSH), as well as to companies such as In-CT training and structured internship;
  • 20 In-CT training events (12 basic, 5 master, 2 master coaching, 1 master refreshment) were conducted, with 275 participants representing 154 companies;
  • 4 companies have been linked by the project through SwissCham to the service of supertax deduction scheme provided by the of Ministry of Finance’s Directorate General of Tax.

Knowledge Management and Learning Mechanism:

  • 27 knowledge sharing and 6 peer learning events or workshops were organized, with a total of 2,758 participants representing government entities, TVET schools, TVET implementing partners, industries, chambers, and associations.

Policy issues:

  • Policy support was provided to policymakers through four activities: In-CT Training Impact Study (2020), Motivation Survey of Training vs Non-training Companies (2021-22), Policy Dialogue on Internship to feed into the National TVET Strategy (2022) and Focus Group Discussion on Student Internship Guideline (2023).

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