Sustainable economic development through technical and vocational education and training (SED-TVET)

Programme description

Title: Sustainable economic development through technical and vocational education and training (SED-TVET)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Indonesia
Lead executing agency: Indonesian Ministry of Education and Culture (MoEC)
Overall term: 2010 to 2017

Indonesia. Two young students at vocational training school SMKN 1 Pacet. © GIZ

In recent years, the Indonesian economy has grown substantially. Nevertheless, many regions still lack the trained professionals they need to be competitive and ensure their growth is sustainable. At the same time, however, the country is affected by excessive youth unemployment and widespread underemployment, while the quality of available jobs is often poor. Often, the qualifications gained at vocational training institutions do not match the real needs of the labour market, and graduates do not possess the skills they need to find decent employment. Furthermore, the opening up of labour markets in the ASEAN Economic Community planned for 2015 will also pose a severe test to the quality and competitiveness of the Indonesian workforce. The Indonesian Government is committed to addressing these challenges and restructuring the existing system of technical and vocational education and training (TVET). This will involve a combined effort by all the relevant ministries and institutions, as well as cooperation with the private sector.

The employability of TVET graduates and of the workforce has improved in selected regions of Indonesia.

For the programme GIZ is cooperating with the Indonesian Ministries of Education and Culture, of Industry, and of Manpower. Programme activities take place mainly in the provinces of West and Central Java, Yogyakarta, South Sulawesi and East Kalimantan. One of the primary aims is to increase the cooperation with the business sector in designing and implementing vocational education and training. To this end it promotes dialogue between government actors and the business sector, and works to encourage cooperation in all its areas of activity. These are:

  • improving the management and teaching capacities of TVET institutions
  • innovation for private sector cooperation
  • implementing and monitoring TVET regulations
  • quality assurance and certification in selected sectors.

At the same time, the programme supports its partners in their efforts to consolidate and scale up models and instruments that were developed during the first years of the cooperation.

The advisory services and capacity development activities of GIZ dovetail with investments made by KfW development bank to upgrade the infrastructure at 23 training institutions.

The quality of teaching has improved for about 8,400 students each year in 23 vocational institutes. The graduates of these schools now also receive support in terms of access to career guidance and job placement.

The programme has strengthened the capacity of its Indonesian partners to assess the current state of laws and regulations in the field of TVET, and to draft new one. This is helping to establish a more solid basis on which to reform and harmonise the current system.

Employers were actively involved in incorporating modern occupational standards into vocational qualifications. They have also worked together directly with schools to help shape vocational training courses that more closely match their needs.

All 23 vocational institutions receiving support have produced school development plans. These set out comprehensive measures to enhance school management and ensure the long-term quality of teaching and learning. The priorities and goals detailed in the plans, as well as the monitoring process, will support the institutions’ strategic development, building up their human resources and up-grading their labs and workshops, while encouraging partnerships with local enterprises.

 Indonesia. A student of polytechnic institute ATMI. © GIZ

Results achieved so far
The programme has strengthened the capacity of its partners to analyse the laws and regulations in the field of TVET, and has thus helped provide a sounder basis for the current reforms. It will continue to support its partners in reducing duplications, gaps and inconsistencies in the current regulations, and improving harmonisation between national and local levels.

At the local level, suggestions have been developed collectively for ways to make better use of labour market information. Since the end of 2012, vocational schools in Central Java have been using an IT tool to make job placements more simple. This has the big advantage that the authorities can access the new employment figures at the click of a mouse. In South Sulawesi and Central Java, industry associations have begun systematic consultations with their members to identify their preferred qualification profiles. The results of these surveys are to be introduced on a trial basis to a regional TVET committee that includes partners from government and the schools.

Until 2013, some 33 TVET institutes in five pilot provinces devised their own school development plans. These consist of comprehensive measures to enhance school management as well as the long-term quality of teaching and learning. The priorities and goals set out in the school development plans will help the strategic development of the TVET institutes and facilitate partnerships with local enterprises. In cooperation with the education ministry, the programme is currently finalising a manual that will explain how these partnerships can best support the teaching centres while helping young people to gain practical experience during their training.

Indonesia. Student working with protective clothing at a driller. © GIZ


Stefan Erber