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 German consultancy company GOPA implemented the field of activity 'Quality Assurance and Accreditation' in close cooperation with the Indonesian Ministry of Manpower.

 Indonesia. A student of polytechnic institute ATMI. © GIZ


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.

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

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.

Additional information