Bappenas, ILO and TNP2K Strengthen Employment Network for Youth

26 September 2014

The number of young people able to work in Indonesia will total two thirds of its total population by 2020, according to Iryanti Rahma, Deputy for Poverty, Employment and Small and Medium Enterprises at the National Development Planning Agency (Bappenas). Rahma said that the government’s main focus in the RPJMN 2015-2019 is to consolidate development with an emphasis on economic competitiveness, especially in natural resources, high-quality human resources and technological capabilities.

Rahma spoke at the workshop “Youth Employment Policies and Programmes in Indonesia: The Way Forward”, which was organised Bappenas, TNP2K and the International Labour Organization (ILO), with support from Australia’s Department of Foreign Affairs and Trade at the Le Meridien Hotel, Jakarta (25/9).

Peter van Rooij, ILO director for Indonesia and East Timor, emphasised that the Indonesian government should view this group as a “demographic bonus”, but warned that "if the youth labour force is not prepared in terms of ability and expertise, then they would become a burden on the state budget.”

Youth workers in Indonesia struggle with a lack of familiarity and understanding of work environments and do not have the expertise and skills required by businesses. As a result, they become unable to compete or end up as cheap labour. This can be overcome by introducing a work atmosphere and environment at school, by integrating job skills into school activities as well as synergising education with the needs of the business world.

Ari Perdana, head of the Working Group for Small and Medium Enterprises and Employment at TNP2K, said that today many young people are not part of the formal sector due to a lack of capacity and abilities needed in the business world. Many eventually become cheap labour. “Even those with three diplomas compete for work as security guard and drivers. This makes employment opportunities for high school graduates and below increasingly difficult,” Perdana said.

Although many efforts have been made by the government, civil society organisations and businesses, this issue remains unresolved. Perdana stressed the need to identify programmes and policies that achieve coordination and synergy with each other. “For that, we need a forum that can synergise and coordinate programmes and policies related to youth employment," added Perdana.

Meanwhile, the government has established the Indonesian Youth Employment Network, which is a cross-sector coordination forum. “Indonesia is providing an example to the Asia and elsewhere in developing of this type of network,” said Matthieu Cognac, Youth Employment Specialist at ILO’s Asia Pacific office.

The workshop saw panel discussions with experts from various ministries, civil society organisations and the ILO, such as the Ministry of Manpower and Transmigration, Ministry of Education and Culture, Association of Indonesian Employers, United Indonesian Trade Union, and others. Speakers included Ir. Khairil Anwar, director general for development, training and productivity at Kemnakertrans and Laura Brewer, senior specialist for youth labour at the ILO in Geneva.