research demographics

Quantitative Demographics

Gender Distribution
MSMEs
Startup
Total Owners Interviewed:
300
Total Owners Interviewed:
24
Highest Education Attainment
MSMEs
Startup
Total Owners Interviewed:
297
Total Owners Interviewed:
24
Owner's Age
MSMEs
Startup
Total Owners Interviewed:
294
Total Owners Interviewed:
23
Marital status
MSMEs
Startup
Total Owners Interviewed:
299
Total Owners Interviewed:
23
Number of Dependent(s)
MSMEs
Startup
Total Owners Interviewed:
202
Total Owners Interviewed:
22

Qualitative Demographics

Education
Total Owners Interviewed:
12
Gender
Total Owners Interviewed:
12
SEC
Total Owners Interviewed:
12
Industry
Total Owners Interviewed:
12
Size
Total Owners Interviewed:
12
Age
Total Owners Interviewed:
12

Codesign Demographics

Name
No
organisation
position
category
Priority Area 1: How might we support MSMEs to develop strong and up-to-date market and industry knowledge?
1
Olansons Girsang
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Industry Development Division
Government Institution
2
Adhitya Pratama Yudhasaput
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Small and Medium Enterprise Infrastructure Division
Government Institution
3
Suhono Harso Supangkat
Think20 (T20)
Head of Small and Medium Enterprise Infrastructure Division
Think Tank
4
Sigit Purwanto
Institute for Innovation and Entrepreneurship Development (LPIK-ITB)
Head of Monitoring and Evaluation Division
Think Tank
5
Aufa Doarest
World Bank
Private Sector Specialist
International Organization
6
Timothy Astandu
Populix
CEO
Industry
7
Alam Medina
Governor’s Team for the Acceleration of Development (TGUPP)
Policy Analyst
Government Institution
8
Manael Sudarman
Jakarta Experience Board
Business Director
Government Institution
9
Zidny Ilman
Gojek
Public Policy & Government Relations Jr. Manager
Industry
Priority Area 2: How might we make digitally-empowered growth affordable for MSMEs?
10
Presthysa Nagitha Lestari
Gojek
Vice President, Public Policy and Government Relations
Industry
11
Tauhid Ahmad
INDEF
Executive Director
Think Tank
12
Puji
Bank DKI
SME Division
Financial Institution
13
Teddy Trilaksono
Universitas Prasetya Mulya
Faculty Member
Educational Institution
14
Frida Elizabeth
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Creative and Digital Industry Division
Government Institution
15
Emana Fasianti
Office of Industry, Trade, Cooperatives, Small and Medium Business
Head of Creative and Digital Industry Division
Government Institution
Priority Area 3: How might we build the tech talent reservoir to meet the evolving industry demand?
16
Andy Sulasikin
Jakarta Smart City
Government Institution
17
Tendy Gunawan
International Labor Organization
National Program Officer
International Organization
18
Erika Dianasari Go
Alpha JWC
Partner
Financial Institution
19
William Hendradjaja
Skilvul / Impact Byte
Co-founder & Chief of Business
Educational Institution
20
Nursida Yaru
Tokopedia
Senior Public Policy and Government Relations Associate
Industry
Gender Distribution
Total Owners Interviewed:
20
Category Distribution
Total Owners Interviewed:
20
smartchange 2022
Tech Talent

Produce tech talent through the formal education system

Policies Involved

Innovation
Director General of Vocational Education Regulation on Digital Talent

Challenge

To ensure that future demands for high-quality tech talent are met, it is imperative that today’s formal education integrates the latest digital tools and technology skills into the curriculum. Given the increasingly high costs of continuing higher education, skills-based study such as those found in vocational secondary schools (Sekolah Menengah Kejuruan or SMKs) offers a new pool of candidates for technical careers in the technology sector. However, SMKs in Indonesia have long faced challenges in producing employable youths1. Furthermore, not all of Indonesia’s SMKs offer majors related to the digital economy, such as software engineering, machine learning or human computer interaction.

Current Policy

SMK education in Indonesia is regulated by the Ministry of Education and Culture under the Directorate of Vocational Education. In recent years, following the implementation of the Presidential Instruction No. 9 of 2016 on the Revitalization of SMKs, the Indonesian government has launched several programs to improve SMKs and strengthen the graduates’ readiness to enter the workforce. Building on the past programs, the latest 2022 Center of Excellence (Pusat Keunggulan) program based on Minister of Education and Culture Decree No. 17 of 2021 seeks to establish collaborations between SMKs and the private sector, which involve: joint curriculum development, project/industry-based learning, lecturers from the business world and industry, practical fieldwork, competency certification for graduates, teacher training by industry, commitment by industry to absorb SMK graduates, scholarships or commitment to work by the working world for SMK students. Despite the encouraging development, participation in the program is by application, as it is meant to showcase selected SMKs as a reference center for improving the quality and performance of other vocational schools. This creates an opportunity gap whereby not all students enrolled in SMKs are able to benefit from industry linkages.

Furthermore, fluency in English is a crucial skill for students seeking to pursue a career in the technology sector, but this is currently not supported by the curriculum. For instance, according to the Directorate General of Primary and Secondary Education of the Minister of Education and Culture Regulation No. 7 of 2018 on the SMK Curriculum Structure, the curriculum structure for software engineering, a key major in digital economy, includes only 352 hours for English language and other foreign languages over the course of three years2. Since English is the main language of the technology sector, more focus and time should be devoted to its practical application at the SMK level so that students can be more prepared before entering the workforce.

Action

Efforts to produce digital talent through the formal education system require the close collaboration of educators, industry, as well as governments at the national and regional levels, both of whom play a role in the development and delivery of vocational education and training3. The expansion of digital economy majors to other SMKs across the country and involving industry in developing the curriculums can help learners to gain skills that are important to technology sector employers. Equalizing access to SMKs that benefit from the Center of Excellence program, or offering SMKs with digital economy majors access to the same facilities, is important since it gives students access to the quality teaching and equipment standards they need in order to succeed in the technology sector. Meanwhile, students’ English skills must also not be overlooked as it is a vital skill needed to be able to keep up with educational or training resources - many of which are provided only in the English language. Having practitioners as teachers can ensure that students are receiving the most relevant language skills that are required in the workplace. Lastly, incentivizing the technology sector to hire SMK graduates through fiscal and non-fiscal incentives can boost the rate of employment among SMK graduates, whose high unemployment rates remain a concern to policymakers.

action points
parties involved
Encourage SMKs to offer digital economy majors
Ministry of Education and Culture, Directorate of Vocational Education
Office of Education DKI Jakarta 
Tech Community (Startups, Enablers, Investors, others) 
SMKs
Assist SMKs in applying for the Center of Excellence program
Ministry of Education and Culture, Directorate of Vocational Education
Office of Education DKI Jakarta 
SMKs
Facilitate industry linkages for SMKs outside of the Center of Excellence program
Ministry of Education and Culture, Directorate of Vocational Education
Office of Education DKI Jakarta 
SMKs
Tech Community (Startups, Enablers, Investors, others) 
Provide intensive and practical English language training for students
SMKs
Tech Community (Startups, Enablers, Investors, others) 
Incentivize the tech sector to hire SMK graduates 
Ministry of Education and Culture, Directorate of Vocational Education
Ministry of Manpower 
Other relevant government institutions or agencies, for example the Ministry of Communications and Informatics and Ministry of Finance 
Tech Community (Startups, Enablers, Investors, others) 

Indicator of Success

Number of SMKs offering digital economy majors
Number of collaborations between industry and SMKs offering digital economy majors
Number of job or apprenticeship placements for SMK digital economy graduates
previous
Improve access to and boost demand for tech mentoring
next
Formulate software house incentive plan
  1. Employers find Indonesia’s vocational school grads of little use. https://asia.nikkei.com/Economy/Employers-find-Indonesia-s-vocational-school-grads-of-little-use2
  2. Directorate General of Primary and Secondary Education of the Ministry of Education and Culture Regulation No. 7 of 2018 on the SMK Curriculum Structure, Kompetensi Keahlian: Rekayasa Perangkat Lunak (3 Tahun).
  3. OECD. (2020). Employment and Skills Strategies in Indonesia. https://www.oecd-ilibrary.org/employment/employment-and-skills-strategies-in-indonesia_dc9f0c7c-en

For many entrepreneurs, the decision to turn into innovations depends on the ease to adopt technology, trained workforces, and multiple sources of finance. Yet, navigating the complex regulation is a major challenge for most lay business people. To expedite the economic recovery post-pandemic recession, the stakeholders in the ecosystem are urged to formulate the right policy to simplify such challenges.

— Kariem El-Ali, Senior Policy Advisor
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