Technical and Vocational
Education and Training inIndonesia: Challenges andOpportunities for the Future
Lee Kuan Yew School of Public Policy - Microsoft Case Studies
Series on Information Technology, Public Policy and SocietyLee Kuan Yew Schoolof Public Policy –Microsoft Case Study Series
on Technical and Vocational
Education and Training
Case Title:
Technical and Vocational Education andTraining in Indonesia: Challenges andOpportunities for the Future

Contents

Pages

Abbreviations

7

1. Introduction

8

2. Education in Indonesia

2.1 Decentralized Governance and the Education Sector
2.2 Decentralization’s Mixed Results

9911

2.3 Technical Education within the Formal Education System

12

3 Technical Vocational Education andTraining in Indonesia

3.1 History of Vocational Education
3.2 Initial Low Demand
3.3 Expansionary Policy for Vocational Education
3.4 Capacity Building
3.5 Linkage with Industries
3.6 Aligning Vocational Education with Economic Priorities
3.7 Lifelong Learning
3.8 Certification

14
14
14
16
18
20
22
24
26

4. The Indonesian Qualifications
Framework28

5. Integrating Information andCommunications Technology
in Education

32

6. Policy Challenges

6.1 Negative Stigmatization
6.2 Shortage of Funding
6.3 Shortage of Quality Vocational Teachers and Lecturers
6.4 Lack of Incentives for Industry Involvement
6.5 Poor Inter-Agency Coordination
6.6 Indonesia’s Geographical Features

34
34
34
34
35
35
36

7. Opportunities for Indonesia’s
Vocational Education

37

Exhibits

40
41
42
16
44

7.1 Improving the Employability of Vocational Graduates
7.2 Building New SMKs and Tertiary Vocational Institutions
7.3 Cultivating Public-Private Partnerships
7.4 Incentivizing the Private Sector
7.5 Facilitating Long Distance Learning

Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4			Exhibit 5
Exhibit 6
			General Information on Indonesia
SMK’s Curriculum Structure
Varieties of Tertiary Institutions in Indonesia
Knowledge Mastery Levels based on National
Education Standards.
Competencies at Work based on the Indonesian
Qualifications Framework
Curriculum Development in Tertiary
Vocational Institutions

Bibliography
List of Figures

Figure 1
Figure 2			
Figure 3			Figure 4
Figure 5			
Figure 6
			
Figure 7
Figure 8			Figure 9
Figure 10
Figure 11

National Budget for Education, 2011-2015
Share of SMK Students to Total Numberof Secondary Students, 1992-2007
Education Level of Indonesia’s Labor Force,
2003, 2013 & 2025
Number of SMAs and SMKs, 1990-2015
Composition of Tertiary Education Institutionsin Indonesia
Indonesia’s Economic Corridors according
to the MP3EI
Blueprint for SMK’s Future Development
Number of Public and Private Training Centers
in Indonesia
Skills Certification Scheme
The Indonesian Qualifications Framework
Maximum Recognition for Competencies

37
38
38
38
39

46
47
49
11
15
16
17
17
23
24
25
27
28
29

Figure 12
Figure 13			Figure 14
			

The Multi Entry, Multi Exit System
Overview of Curriculum Development in
Tertiary Vocational Institutions
Curriculum Development Process for D3 		
Vocational Program on Accountancy

List of Tables

Table 1			
Table 2			
Table 3			
Table 4
Table 5

Boxes		
Box 1
Box 2

31
47
48

Share of the National Budget for Education(in trillion Rupiah)
Summary of Tertiary Education Programsin Indonesia
DGHE’s Agenda for Expansion of Vocational
Education
The MENC’s ICT Implementation Program
SMK’s Curriculum Structure

10

The Successful Case of ATMI Surakarta Polytechnic
Inter-Agency Coordination within TESDA

22
36

13
18
32
43

Authors and information about the case:This case study was written by Dr. Suzaina Kadir together with Mr. Nirwansyah
and Ms. Bianca Ayasha Bachrul from the Lee Kuan Yew School of Public Policy
together. It is based on existing literature, in-person and email interviews with Mr.
Agung Budi Susanto (Subsection Head, SMK Development, Ministry of Education& Culture), Mr. Kokok Haksono (Polytechnic Education Development Manager,
Directorate General of Higher Education), Mrs. Nunung Martina (lecturer, Jakarta
Public Polytechnic), Mr. Rudy Djumali (Senior Advisor, GIZ GmbH), Mr. Dadang
Kurnia (Advisor, GIZ GmbH), Ms. Meby Damayanti (Advisor, GIZ GmbH) and
Mr. Fikri Kurniakiki (Subsection Head, International Cooperation, Ministry of
Manpower).
Date:
August 2016
Credits:
Layout by James Lee
Front Illustration by Paul Lachine

Vocational Education andTechnical Training in Indonesia:
Challenges and Opportunities
for the FutureAbbreviations“Do not ever underestimate vocational
education. The Higher Education Act
puts equal importance between academic
education and vocational education interms of organizational and workforce
structure. For example, a polytechnic
lecturer must now at least hold a masters
degree. Therefore, vocational education
should no longer be discriminated against
academic education. Similarly, there should
be no discrimination between vocational
lecturers and academic lecturers.”
Former Minister of Education & Culture Mohammad Nuh
Inauguration ceremony of Madiun Public Polytechnic,
East Java, 11 May 2013

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

7

Abbreviations
Annual SMK Expo		

Annual SMK Expo of Competency Products and
Job Fairs for SMK Students

CPSC

Colombo Plan Staff College

CTICE
		

Center of Technology Information and Communication
for Education

DGHE

Directorate General of Higher Education

Higher Education Act

Law No. 12 of 2012 on Higher Education

IT		Information Technology

ICT		

Information and Communications Technology

IQF		

Indonesian Qualifications Framework

MENC

Ministry of Education and Culture

MOF

Ministry of Finance

MOM

Ministry of Manpower

MORA

Ministry of Religious Affairs

MORTHE

Ministry of Research, Technology and Higher Education

MP3EI
		
		
		

Masterplan for Acceleration and Expansion of Indonesia
Economic Development, 2011-2025 (Masterplan
Percepatan dan Perluasan Pembangunan Ekonomi
Indonesia)

National Education
System Act

Law No. 20 of 2003 on the National Education System Act

NPCB
		

National Professional Certification Body
(Badan Nasional Sertifikasi Profesi)

PPP		

Public-Private Partnerships

RPL		

Recognition of Prior Learning

SMA		

General Senior Secondary Schools

SMK		

Vocational Senior Secondary Schools

TESDA

Technical Education and Skills Development Authority

TVET

Technical Education and Vocational Training

WTLS

Web-Based Teaching and Learning System

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

1. Introduction

1.

8

Introduction

2. Education inIndonesia

2.

Indonesia is an emerging force to be reckoned with. According to the McKinsey
Global Institute, Indonesia is the 16th largest economy in the world with potential
to climb to the 7th position by 2030 (Oberman et al. 2012). Indeed, Indonesia’s
current success can be attributed to the nation-state’s political stability and economic
resilience. Indonesia is also one of the most decentralized countries in the world,
where the Central Government’s authority is limited to issues of defense, security,
religion, international affairs and laws, fiscal and monetary policies thereby giving
the provinces substantial say in local governance. Additionally, Indonesia has
made significant improvements in its macroeconomic policy in the aftermath of the1997 Asian Financial Crisis. The World Economic Forum ranked Indonesia 34th on
macroeconomic stability in 2014, a considerable jump from the 87th place in 2007.
Likewise, such optimism for Indonesia’s future is reflected in the National Long-Term
Development Plan for 2005-2025, which highlights the country’s ambition to become
the 12th largest economy worldwide by 2025, and the 8th by 2045. However,Indonesia’s ambitions may be constrained by the low productivity of its labor force.
In 2010, 50.4% of the labor force obtained primary school degree, among which
only 7.6% graduated with a degree from a tertiary education institution (Susanto2012). Labor productivity is further hampered by the wide skills gap between theskills attained through formal education and those needed at the workplace. In fact,
Indonesia’s labor productivity lags behind that of Malaysia, Thailand, the Philippines
and China (World Bank 2014). As such, Indonesia’s Ministry of Education & Culture(MENC), the Directorate General of Higher Education (DGHE) and the Ministry of
Manpower (MOM) has decided to focus extensively on improving technical educationand vocational training (TVET) to narrow the skills gap.
This case study is about the development of, and future for, vocational educationin Indonesia. Section 2 provides an overview of Indonesia’s education systemand the impact of decentralization on the education structure. Section 3 explores
Indonesia’s TVET system, focusing on vocational education and technical training.
Section 4 discusses the Indonesian Qualifications Framework (IQF/Kerangka Kerja
Nasional Indonesia) and its implications for vocational education. Section 5 examines
the integration of Information and Communications Technology (ICT) in vocational
education. Finally, sections 6 and 7 analyze the challenges and opportunities forvocational education in Indonesia.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future9

Education in Indonesia
Education is a basic right of every Indonesian citizen. Since 1994, a top priority for
the MENC is to ensure every child attends nine years of mandatory basic education,
comprising six years of primary school education and three years of junior secondary
school education. The mandatory basic education program has successfullyincreased junior secondary school enrollment (for students aged 13 to 15) from79.21% in 2002 to 86.11% in 2010 (Central Statistical Agency 2015a). In 2012,
the MENC introduced the Universal Senior Secondary Education Program, which isa twelve-year mandatory education program aimed at increasing senior secondary
school enrollment rate (Wedhaswary 2011). Full implementation of the program waslaunched in June 2015 (Galih 2015).

2.1

Decentralized Governance and the Education Sector
Prior to democratization in 1999, Indonesia’s education system was highly centralized,with regulations, policies and procedures determined by the MENC. Religious
schools were similarly centralized under the charge of the Ministry of Religious Affairs’(MORA). The Provincial Governments, District/Municipal Governments and schools
thus had very little decision-making authority. Funds for the education sector camesolely from the National Budget, distributed by the Ministry of Finance (MOF) to theProvincial and District/Municipal Governments in the form of block grants. These
grants could only be spent on purposes specified by the MOF.1
The decentralization laws passed in 1999, namely Laws No. 22 and 25 (of 1999),
limited the Central Government’s powers to defense, security, religion, international
affairs and laws, fiscal and monetary policies only. The education sector was therefore
decentralized. Law No. 20 of 2003 on the National Education System Act placed
the management of education and its delivery under the charge of District/Municipal
Governments, retaining close cooperation with the MENC.2
The MENC would continue to oversee the national curriculum and standards ofcompetencies. It also retained authority over matters of accreditation, certificationand evaluation in the education sector. On the other hand, the District/Municipal
Governments were now free to decide on operational and technical matterspertaining to primary, junior secondary and senior secondary schools. The National
Education System Act also increased public involvement in school management
by requiring every school to establish a school committee comprising community
members, teachers and parents.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

2. Education inIndonesia10

2. Education inIndonesia

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the FutureWith the 2003 National Education System Act, the Provincial Government plays two
main roles in the education. Firstly, it serves as an extension of the MENC at theregional level, executing various tasks such as quality control, evaluation, program
monitoring, accreditation, certification and capacity building. Second, the Provincial
Government functions as coordinator, resolving issues arising among the districts/
municipals within its jurisdiction, including the transfer of civil servants/teachers3 andmanagement of education facilities shared among district/municipal residents.4

The MENC and DGHE also welcome external financial assistance towards Indonesia’s
education sector. Besides government funds, schools and tertiary education
institutions may generate additional funds through student fees, and individual or
corporate donations.

Beginning in 2005, the Central Government introduced an additional operational
assistance fund to support the mandatory basic education program and the universal
senior secondary education program. This has increased the Central Government’s
financial responsibilities towards the education sector substantially. In the recent
years, Provincial Governments have also been authorized to manage the operational
assistance funds for education, on top of their roles as the coordinator and executorof education policies.
Figure 1. National Budget for Education Year 2011-2015
500.0
408.5

450.0

375.5

400.0
350.0
In trillion Rupiah

Currently, funding for the education sector is the shared responsibility of the Central,
Provincial, and District/Municipality Governments, and the community. Each level ofgovernment must allocate 20% of its annual budget towards education. However,while the MOF has consistently earmarked more than 20% of the annual National
Budget towards education (see Table 2), the provinces do not contribute to the funds
equally. For instance, in 2012 Jakarta and Central Kalimantan provinces allocated22.51%, and 20% of their respective budgets towards education while North Maluku
contributed just 4.7% (Jawa Pos 2012).

11

300.0

345.3
310.8
266.9

200.0

5

7

2.6

250.0

159.0

0

8.4

117.2

126.2

128.3

117.2

126.2

128.3

154.4

150.0
100.0
50.0

105.4

154.4

0.0

Table 1. Share of the National Budget for Education (in trillion Rupiah)

2011

2012

2013

ITEM

2011

2012

2013

2014

2015

Education Budget

266.9

310.8

345.3

375.5

408.5

National Budget given to the Central Govt.

Total National
Budget1,320.8

1,548.3

1,726.2

1,876,9

1,984.1

National Budget transfered to Local Govt.

Ratio of the Education
Budget

20.2%

20.1%

20.0%

20.0%

20.6%

Source: MOF (2015)

2015

Education budget through financing expenditure

Source: MOF (2015)

2.2
The MOF transfers the bulk of the National Budget for education to the Local
Governments (Figure 1), and the latter determines the amount to be spent on
different aspects of the education sector. Local Governments can utilize these funds
to implement tasks delegated by the MENC, as well as obtain additional income tofund education through local economic activities and natural resources extraction.

2014

National Budget Year

Decentralization’s Mixed Results
Decentralization has produced mixed results in the education sector. On the positiveside, Indonesia has achieved near-universal primary school enrollment. Enrollment
rates in junior and senior secondary have also increased significantly. Children
from the poorest families have been the largest beneficiaries of financial assistanceprograms. District/Municipal Governments have the autonomy to recruit local
teachers and volunteer teachers, as well as to cooperate with private companies fortraining and capacity building programs. The content and quality of textbooks havealso improved significantly.

2. Education inIndonesia

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future12

2. Education inIndonesia

On the negative side, the quality of education varies widely across the districts/
municipalities resulting from the differences in capabilities and ability to utilize
educational resources effectively. On the whole, inadequacies in teacher
qualifications, remuneration, instructional hours and education infrastructure persist
across Indonesia. This has been compounded by the fact that District/Municipal
Governments often adopt protectionist policy that limits the transfer of civil servant
teachers due to fear of not getting quality replacement.
Law No. 23 of 2014 on Local Governance attempts to address the shortcomings ofdecentralization in the education sector. By redistributing the responsibilities between
the MENC, and the Provincial and District/Municipal Governments, the regulations
aims to improve inter-agency communication and coordination between the Central
and Local Governments. This new arrangement, to be implemented on 1 January
2017, mandates that the District/Municipal Governments will only be responsible forearly childhood education, non-formal education, and primary and junior secondary
schools. The Provincial Governments will be responsible for SMAs, SMKs andspecial needs schools. The MENC, as the representative of the Central Government,
will oversee both academic and vocational tertiary education institutions. It will also
be responsible for national education standards, and the accreditation and allocationof civil servants teachers, lecturers and teaching staff across Indonesia.
2.3

Technical Education within the Formal Education System
Vocational education belongs to the domain of formal education, which is one of
the three recognized streams of education in Indonesia alongside non-formal andinformal education. Formal education comprises a tiered education obtained throughenrollment in schools from the primary level until the tertiary level. The formal education
system can be further differentiated into the academic and the vocational tracks.
Within the academic track, the general schools teach secular academic subjects
while the religious schools teach a mixture of academic and religious subjects.5
Within the vocational track, the vocational schools offer secular academic subjects
as well as subjects which focus on technical skills.
Vocational education is first introduced at the senior secondary level. Students intheir 10th grade who opt for the vocational track will enter the Vocational Senior
Secondary Schools (SMK) while students who choose the general academic track willproceed to the General Senior Secondary Schools (SMA) (see Exhibit 2 for details).
In accordance with the Higher Education Act, vocational programs are offered by thevarieties of tertiary institutions which consist of community academies, academies,
polytechnics, advanced schools, institutes and universities. In contrast, academic
programs are offered only in the advanced schools, institutes or universities (Table 2;
see also Exhibit 3).

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

13

Various governmental agencies oversee the vocational schools. The Directorate
General of Secondary Education of the MENC supervises vocational seniorsecondary schools (SMK) throughout Indonesia while the Directorate General ofHigher Education (DGHE) oversees all tertiary institutions. The DGHE subsequently
merged with the Ministry of Research, Technology & Higher Education (MORTHE) in2014, and the latter is now responsible for the tertiary institutions.
Table 2. Summary of Tertiary Education Programs in Indonesia.
				Programs Offered
Form of		
Academic			Vocational
Tertiary
Education
Bachelor Masters Doctorate D1 D2 D3 D4Institutions								Community
Academies---

Academies---

Polytechnics

-

-

-

-

Voc.
Voc.
PR* SP**
Masters Doctorate

-		

-		

-		 -		 -

-		

-		

-		-		-

		

		

				

Advanced Schools

-

-

		

		

				

Institutes

-

-

		

		

				

Universities

-

-

		

		

				

Source: Higher Education Act (2012)
Note: * PR = professional programs ** SP = specialist programs

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

3. Technical Vocational
Education and Training
in Indonesia

3.

14Technical Vocational Education and Training
in Indonesia
Indonesia’s TVET system comprises of vocational education and vocational training,both of which are regulated separately. The former is regulated by the National
Education System Act and is under the charge of the MENC and the DGHE. The
latter forms part of the National Training for Work System is regulated by Law No. 13
of 2003 on Manpower Act and Government Regulation on National Training for Work
System/Sistem Pelatihan Kerja Nasional (Government Regulation No. 31 of 2006).
Overall, vocational experience can be obtained by enrolling in formal vocational
education, receiving vocational training, or a combination of both —as one pursues
vocational training to improve his technical skills upon graduation from a vocational
school.

3.1

History of Vocational Education
The emergence of vocational education in Indonesia can be traced to Dutch colonial
rule, when various types of specialist schools were introduced for the lower andmiddle class Dutch nationals in Indonesia. Towards the end of Dutch rule (19421945), there were 88 vocational schools in Indonesia with 13,230 students enrolled(Supriadi 2002). The vocational schools still remain in Indonesia today, albeit withchanges to their names and curricula (Abubakar 2014).
Recognizing the importance of vocational education in grooming employment-readystudents, the Government of Indonesia rapidly increased the number of vocational
schools and tertiary vocational institutions available following independence. In 1973,
the Swiss Mechanical Polytechnic – Bandung Technological Institute was establishedas the first polytechnic that offered D3 programs (Hadiwaratama 1994). Between
1982 and 1994, 25 polytechnics were built with financial assistance from the WorldBank and the Asian Development Bank, and with technical assistance from Australia,
Germany, Japan, New Zealand and Switzerland (Hadiwaratama 1994). By 1995, 700
public SMK and 3,000 private SMK had been established, with a total of 1.57 million
students enrolled (Supriadi 2002).

3.2

Initial Low Demand
Despite the Indonesian government’s efforts to increase the number of SMKs andtertiary vocational institutions, demand for vocational education initially remained
weak (Figure 2). From 1997 to 2007, the share of SMK students accounted for
only 20% to 27% of the total number of senior secondary students. Throughout the
decade, demand for senior secondary vocational education in SMKs remained lower
than that for senior secondary academic education in SMAs.

3. Technical Vocational
Education and Training
in Indonesia

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

15

Figure 2. Share of SMK Students to the Total Number of Secondary Students, 1992-2007
Left axis

Right axis

Number of vocational students

Share of vocational students to total secondary students (%)

1,700,000

38
36

1,600,000

34
32

1,500,000

30
1,400,000

28
26

1,300,000

24
22

1,200,000

20
1,100,00

1992

1994

1996

1998

2000

2002

2004

2006

18

Source: World Bank (2010)

The low demand for vocational education can be attributed to the negative imageof the TVET system. Parents in Indonesia typically regarded vocational school
graduates negatively due to the low salaries, unclear career progression, and low
academic capabilities compared to university graduates. Parents also opined thatstudents with general academic education fared better socio-economically thanthose who pursued vocational education. Studies by Chen (2009) and Newhouse &Suryadharma (2009), which seemed to confirm the parents’ fears, revealed that male
graduates from SMAs received higher salaries compared to male SMK graduates.
Moreover, the lower academic capabilities of both male and female SMK students
compared to their SMA counterparts appear to have compromised their chances
to pursue tertiary education. Indonesian parents thus preferred that their children
pursue general academic qualifications which would culminate in university degrees.
Skills mismatch, referring to the gap between the skills learnt in schools and the skills
needed in job markets, further weakened the demand for vocational education. Evenas the focus of economic development shifted from agriculture to the manufacturing
and the service sectors, business management SMKs remained the top choiceamong students, with some 49% of the total number of SMK students enrolled in
the course (World Bank 2010). Consequently, there was a shortage of suitably skilledworkers in the manufacturing and export-oriented sectors (Di Gropello, Kruse andTandon 2011) with the industry unable to absorb the vocational school graduates.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

3. Technical Vocational
Education and Training
in Indonesia

3.3

16

3. Technical Vocational
Education and Training
in Indonesia

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Figure 4. Number of SMAs and SMKs, 1990-2015

Expansionary Policy for Vocational Education
Beginning in 2005, the MENC adopted expansionary goals to improve the qualityof vocational education and to narrow the skills gap. The MENC aims to improve
the ratio of SMA to SMK students from 60:40 in 2009 to 50:50 in 2015, and finallyto 70:30 in 2025, with the expectation that graduates from SMKs and SMAs would
account for 30% and 20% of Indonesia’s labor force by 2025 respectively (Figure3). As of February 2015, 55% of senior secondary students were enrolled in SMAs
rather than SMKs (Susanto 2015).

11,654(2012)

14,0008,899(2005)

12,0008,010(1990)

10,0008,000

10,256(2012)

6,000

Figure 3. Education Level of Indonesia’s Labor Force for 2003, 2013 & 2025

4,000
2,000

60%

1990

1995

49%

2000
SMA

2005

2010

2015

SMK

Source: Central Statistical Agency (2015b)

40%

30%

30%

20%

20%

10%

5,665
(2005)

3,540(1990)
1985

55%

50%

17

19%
15%

14%

3% 2%

6%

5%

Figure 5 shows the current make-up of tertiary education institutions in Indonesia.
However, as outlined in the MENC’s strategic plan for 2010-2014, DGHE aims toincrease the number of tertiary vocational institutions, with particular focus on the privately
owned community academies and polytechnics (Table 3). In contrast, a moratorium has
been placed on the establishment of academic programs by private tertiary education
institutions from 1 September 2012 to 31 August 2014 (Sundari et al. 2012), with further
extensions to the moratorium thereafter until further notice (MENC 2014).

20%
15%

9%

15%
10%

10%

3%

0%
University

Diploma 1/2/3

SMK

SMA

SMP (Junior High School)

SD (Primary School) / did not graduate SD

Figure 5. Composition of Tertiary Education Institutions in Indonesia
2,500

2,308

Source: Central Statistical Agency (2015c) & Directorate of SMK Development (2014)
2,000

To meet its target, the MENC has stopped building new SMAs. Instead, it isestablishing new SMKs and converting existing SMAs into SMKs amid the increasein vocational schools at the senior secondary level. By 2012, the number of SMKs inIndonesia had doubled while of the number of new SMAs fell (Figure 4). In 2015, 200
new SMKs specializing in the agriculture, tourism, infrastructure and manufacturingindustry were built (Saputri and Zuhri 2015).

1,500

1,094
1,000

514

500

0

227

5
Community
Academies

Source: DGHE (2015)

Academies

Polytechnics

125
Advanced Schools

Institutes

Universities

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

3. Technical Vocational
Education and Training
in Indonesia

18

Target

		

2015

2025

Student Capacity of Newly Built Community Academies

242,100

499,500

Number of Newly Built Community Academies

269

555

Student Capacity of Newly Built Polytechnics

215,000

442,000

Number of Newly Built Polytechnics

54

111

Number of Vocational Postgraduate Programs
10
20
Offered in Polytechnics				Student Capacity of Newly Built Universities/Institutes

141,000

300,000

Number of Newly Built Universities/Institutes

1430

Additional Lecturers at Tertiary Education Institutions

53.000111.000

Additional Lecturers with a Doctorate Degree

15%

50%

Source: DGHE (2013a) & MENC (2013)

Currently, most tertiary vocational institutions only offer up to D4 programs, whichis equivalent to a bachelor’s degree program. Indeed, the vocational master’s
degree program in engineering technology offered by Public Electronics Polytechnicof Surabaya is the only such program available in Indonesia. Likewise, vocational
doctorate programs are not available in Indonesia as yet (Susanto 2015). Tertiary
institutions are currently in the process of establishing their own vocational master’sand doctorate programs. But for the time being, D4 graduates keen to continue theirstudies can only do so abroad.
3.4

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

19

programs for lecturers and administrators, facilities and equipment upgrading, as wellas partnership development between polytechnics and industries to ensure quality
curriculum (Asian Development Bank 2012).

Table 3. DGHE’s Agenda for Expansion of Vocational Education
Action3. Technical Vocational
Education and Training
in Indonesia

Capacity Building
In order to be sustainable, SMKs and tertiary vocational institutions require capacity
building in the areas of monitoring and evaluation of the schools’ progress anddevelopment, budget allocation, teaching practices, curriculum development,
improving learning outcomes as well as resource mobilization. Due to resource
limitations, the MENC and the DGHE often enlist the help of private companies andnon-governmental organizations to conduct these capacity building programs.
In 2012, the Government of Indonesia received a US$75 million loan from the AsianDevelopment Bank under the Polytechnic Education Development Project. The loan
funded the capacity building programs of 13 polytechnics in areas such as training

With regards to the development of SMKs, the MENC is assisted by Germany
through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), which
coordinates the Indonesia-Germany cooperation program on vocational education
known as the Sustainable Economic Development through Technical and Vocational
Education and Training (SED-TVET). GIZ supports capacity building geared towards
the enhancement of school management and school development. It has also
supplied equipment to 22 SMKs across Central Java, West Java, Yogyakarta, South
Sulawesi, East Kalimantan and North Sumatra. Additionally, it provides assistancein improving the management system of 10 SMKs and the local education agency(Dinas Pendidikan & Kebudayaan) in the cities of Aceh and Nias following 2004
tsunami. The other contributions of GIZ in Indonesia include improving the TVET’s
regulatory framework, facilitating exchange of labor market information between
employers and vocational graduates, and supporting the implementation of theIndonesian Qualifications Framework (SED-TVET GIZ GmbH 2013).
In terms of capacity building for vocational teachers and lecturers, Law No. 14 of 2005
on Teacher and Lecturers welcomes degree holders from all disciplines to pursue a
career in teaching. Academic and vocational bachelor degree holders are eligible tobecome teachers—defined as those who teach in early education, primary, juniorsecondary or senior secondary level schools. Meanwhile, academic and vocational
master degree holders are eligible to teach vocational diploma (D1, D2, D3 and D4)
and bachelor programs. Finally, only PhD holders are eligible to teach post-graduatesacademic and vocational programs.
Presently, there is a shortage of tertiary vocational institution lecturers with masterand PhD degrees. Assuming that the number of new polytechnics grows at 4.5%
annually, Indonesia would need 1,100 new vocational lecturers just to staff thesepolytechnics (Directorate General of Research Resources, Technology and Higher
Education 2015). To complicate the problem, vocational masters and PhD programs
are not yet available in Indonesia, with the exception of the Public Electronics
Polytechnic of Surabaya (Susanto 2015). As a mitigating strategy, the DGHE hasbegan to offer full scholarships in 2015 to young polytechnic lecturers with basic
degree qualifications to pursue vocational master’s degrees in Germany, Austria or
Taiwan. Upon completion of their studies, the scholarship recipients are required towork at their previous polytechnics for five years. The effectiveness of the DGHE’s
scholarship program in addressing the shortage of tertiary vocational institution
lecturers remains to be seen.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

3. Technical Vocational
Education and Training
in Indonesia

20

In terms of capacity building in information technology (IT), Intel and Microsoft haveassisted the Center of Technology Information and Communications for Education(CTICE) within the MENC to conduct trainings on effective utilization of technology inschools. These workshops are focused on engaging IT to increase the transparencyof the school’s management system, as well as to harness IT as an instructional
tool in class. A survey conducted by the Ministry of Communications & Information
Technology with 801 primary schools, junior secondary schools, SMAs and
SMKs revealed the low use of ICT among teachers (Ministry of Communications& Information Technology 2011). Another survey by Son, Robb and Charismiadji(2011) showed that while many teachers typically used word processing, e-mails, theinternet and multimedia programs, they rarely used other applications such as online
discussion groups or video conferencing programs in their teaching.
3.5

Linkage with Industries
Employers are the end users of the skills acquired by vocational school graduates. As
such, a close partnership between the industries and vocational education institutions
is fundamental in ensuring that new graduates are equipped with employmentrelevant skills. All SMKs and tertiary vocational institutions are thus required by the
MENC and the DGHE to work with an industry partner. Moreover, proposals toestablish new SMKs or tertiary vocational institutions must be accompanied by aMemorandum of Understanding outlining the cooperation between a company andthe prospective vocational school.
The MENC and the DGHE welcome various forms of industry involvement invocational education. These initiatives include scholarships for students, financial
and physical resources donations (such as facilities and equipment), as well as thesecondment of industry experts to vocational education institutions as part-time
instructors. Some companies also allow their employees to act as external assessors
for the competency tests for vocational students. Additionally, companies host SMK
and tertiary vocational students in mandatory student internship programs whichspan three to six months, as well as participate in the annual job fairs organized by
the MENC (SED-TVET GIZ GmbH 2012).
To promote an industry-based vocational education model, the MENC pioneered the“Link and Match” policy for SMKs and tertiary vocational institutions. First initiatedin 1989 and refined over the years, the policy adopts the form of a teaching factory,
where theories learned in school are combined with production-based approach in
an industrial facility, thereby synchronizing vocational education with the industries’
demands and standards. According to Zainal Nur Arifin (2014), lecturer at the Jakarta
Public Polytechnic, there are three known teaching factory models in Indonesia’s
vocational education system:

3. Technical Vocational
Education and Training
in Indonesia

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Model 1The SMK or tertiary vocational institution provides space for its industry
partner to build a teaching factory within the institution’s premises. The
teaching factory is thus a mini replica of an actual factory, where vocational
students learn to assemble and produce goods for its industry partner, with
the SMK or tertiary vocational institution in charge of the management of
the teaching factory. Examples include Public SMK 2 Pangkalpinang, Public
SMK 2 Cikarang, Public SMK 2 Depok (Sleman), Public SMK 1 Percut Sei
Tuan (Medan) & Public SMK 5 Makassar, which have teaching factories toassemble notebooks for PT. Zyrexindo Mandiri Buana.
Model 2The SMK or tertiary vocational institution builds a teaching factory jointlywith its industry partner, with the teaching factory located either within or
outside the school’s premises. The teaching factory operates as a separatebusiness unit from the SMK or tertiary vocational institutions, and the
management of the teaching factory is different from that of the SMK or
tertiary vocational institution. This particular model of teaching factory isheavily shaped by the needs of the vocational program. It is also more costly
to build and operate compared to the previous model. The cooperation
between ATMI Surakarta Polytechnic with PT. ATMI best illustrates the
success of such a teaching factory model (see Box 1).
Model 3
The teaching factory takes the form of a special cooperation class between
an industry partner and an SMK or tertiary vocational institution. As such,
students practice their skills in two places — in laboratories owned by the
SMK or tertiary vocational institution, and in the actual factories ownedby the industry partner. The operational costs for this special cooperation
class can be fully or partially paid from the industry partner’s Corporate
Social Responsibility (CSR) funds. The collaboration between Jakarta Public
Polytechnic and its industry partners PT. Holcim Indonesia Tbk, PT. Badak
LNG and LIGO Group of Companies, exemplifies such a teaching factorymodel which is fully funded by the industry partners (Arifin 2014).

21

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

3. Technical Vocational
Education and Training
in Indonesia

22

Box 1. The Successful Case of ATMI Surakarta Polytechnic

3. Technical Vocational
Education and Training
in Indonesia

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

23

Figure 6. Indonesia’s Economic Corridors according to the MP3EIATMI Surakarta Polytechnic is one of the leading providers of vocational education in Indonesia.
Located in Central Java Province, ATMI Surakarta Polytechnic is owned by the Karya Bakti
Surakarta Foundation. It adopts production-based education and training, and has partnerships
with more than 100 companies across Indonesia. Moreover, ATMI Surakarta Polytechnic has gaininternational recognition when it was awarded the ISO 9001:2008 for excellence in productionand education.
ATMI Surakarta Polytechnic owns a business entity called PT. ATMI, which is also the teaching
factory for the ATMI Surakarta Polytechnic’s students and is located within the polytechnic’s
premises. From the very beginning of their studies, students are integrated into PT. ATMI’s daily
operations and are thus well-accustomed to positioning themselves within a professional setting.
Students also learn under the close supervision of PT. ATMI’s senior employees, with lecturerstudent ratio in the range of 1:5 to 1:7.
At ATMI Surakarta Polytechnic, students are taught production planning, storage mechanism,
calculation of costs, production techniques and packaging mechanism. Hospital equipment,
school equipment, workshop equipment, single purpose machine, mouldings and precision tools
are some of the products made by the students for both the domestic and international markets.
Profits from the sale of such products are used to fund the operational costs of the polytechnic.
This funding mechanism has led to more affordable tuition for students, with students paying
just 30% of their actual tuition.
Graduates of ATMI Surakarta Polytechnic are employed as supervisors, heads of production
or managers in various companies. As their skills are on par with industry standards, ATMI
Surakarta Polytechnic’s graduates typically earn 30% more than their counterparts from othertertiary vocational institutions.
Source: SED-TVET GIZ GmbH (2013)

3.6

Aligning Vocational Education with Economic Priorities
Indonesia’s national economic policies are directed at the country’s development as
the 12th and the 8th largest economy in the world by 2025 and 2045 respectively.
In particular, its Masterplan for Acceleration and Expansion of Indonesia Economic
Development 2011-2025 (MP3EI), which coordinates existing medium and long term
action plans, highlights six economic corridors as new centers of growth to boost thecountry’s overall economic growth. Indeed, the MP3EI stresses the importance ofdeveloping regional economies by maximizing the utility of regional resources (Figure6). Aligning the development of SMKs and tertiary vocational institutions with thesepolicies and priorities is thus crucial to the country’s planned economic development.

SumatraJava“Center for
Production andProcessing of Natural
Resources and as
the Nation’s Energy
Reserves”“Driver for National
Industry and Service
Provision”

Kalimantan

Sulawesi

Bali - NT

Papua - Kep. Maluku“Center for
Production andProcessing of
National Mining andEnergy Reserves”“Center for
Production andProcessing of
National Agriculture,
Plantation, Fishery,
Oil & Gas, andMining”“Gateway for
Tourism andNational Food
Support”“Center for
Development ofFood, Fisheries,
Energy and National
Mining”

Source: KP3EI (2012) and KP3EI of the East Kalimantan Province (2012)

Indonesia’s economic priority sectors may shift with time, depending on the decisionof the country’s leaders. This in turn necessitates timely adjustments to the national
vocational education system in order to provide the best support to the country’s
overall economic goals. President Joko Widodo’s administration has identified
tourism as one of the priority sectors for economic growth. Likewise, the MENC
aims to align the development of SMKs with the tourism sector as the core industry
focus, alongside the creative arts, hospitality, maritime, agriculture, security and thetelecommunications industries as the relevant sub-sectors (Figure 7).

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

3. Technical Vocational
Education and Training
in Indonesia

24

3. Technical Vocational
Education and Training
in Indonesia

25

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Figure 8. Number of Public and Private Training Centers in Indonesia

Figure 7. Blueprint for SMK’s Future Development

400

Tour Guide

Security

361

360

Hotel

Transportation

320

General
Culinary

TOURISMbackboneindustry

Telecommunications

280

240

Craftmanshipfor Souvenirs

Culinary for Traditional
Snacks200
187

Managementof Tourist
Attractions

Performing
Arts

176
160

120

Source: Susanto (2015)
94
81

80
65
55

7

Yogyakarta

North Sumatra

14 18
13

West Sumatra

14 12
6

South SumatraSouth Sulawesi

0

15
7

North Sulawesi

10Central Sulawesi

Riau

0

77 4

Southeast Sulawesi

19
3West Sulawesi

Papua

West Nusa Tenggara

No. of Private Training Centers

8 1212

West Papua

828

East Nusa Tenggara

42 2 7

Maluku23

North Maluku

Lampung

3

Riau Islands

East Kalimantan

6 7

2Bangka Belitung Islands

South Kalimantan

19
17 18
9 12 11 8

64

56

37
29

26

Central Kalimantan

7

No. of Public Training Centers

Source: MOM (2014)37
25

East Java

9

20

Jambi

56

33

Central Java

Within the context of enhancing Indonesia’s vocational education, lifelong learning
entails exploring opportunities to continue skills upgrading through training outside theformal vocational education system. Vocational lifelong learning is the responsibility of
the MOM, and is conducted in both public and private employment training centers.6
In 2014, there were 1,555 private employment training centers in Indonesia–almost
five times the number of public employment training centers (Figure 8).

7

DKI Jakarta

Lifelong Learning

Bali

0

4

Bengkulu

5 7Gorontalo

17

Banten3.7

27West Java

27

West Kalimantan

41

40

Aceh

The DGHE however has yet to embark on a similar mapping process for thedevelopment of tertiary vocational institutions (Kurnia 2015). Instead, plans forestablishment of new tertiary vocational institutions are still guided by the MP3EI’semphasis on developing human resources with skills that correspond to .theeconomic potential of the particular region. This means that the DGHE will rejectplans for new tertiary vocational institutions which do not align with the prioritized
activities in the specific region (Haksono 2015).

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

3. Technical Vocational
Education and Training
in Indonesia

26

Vocational training is available for the following nine industry sectors: 1) processing; 2)services; 3) finance, real estate and business services; 4) construction; 5) electricity,
gas and clean water; 6) transportation and communications; 7) trade, hotels andrestaurants; 8) mining and excavations; and 9) agriculture, farming, fisheries andforestry. The MOM works closely with the industry partners to ensure that thesetraining programs are demand-driven. As of 2015, the MOM has worked with 5,213
industry partners for the development of vocational training (MOM 2015).
3.8

3. Technical Vocational
Education and Training
in Indonesia

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

or private training centers will be tested by the relevant Third Party Professional
Certification Agency, depending on the skills being trained and test for. Training
centers are not authorized to conduct certification tests.

Figure 9. Skills Certification Scheme

Certification
6. Assignment
7. Recommendation

9. Monitoring

4. Assessment
ProcessAPPLICANT TESTED IN
ASSESSMENT CENTER
2. Choose the Assessment Center

CERTIFICATION TEST APPLICANT
Source: Mulyanto (2008)

Third Party Professional Certification Agencies are established by industry
or professional associations. Certification for competencies obtained in public

5. Assessment
ReportASSESSMENT
COMPENTENCE TEAM
1. File an
Application

The NPCB recognizes three types of Professional Certification Agencies:

Second Party Professional Certification Agencies are established bycompanies to assess and certify suppliers in their production chain;

3. Assignmentof Assessor

TECHNICAL COMMITTEEThe National Professional Certification Body (NPCB/Badan Nasional Sertifikasi
Profesi) is the sole authority in Indonesia responsible for labor skills certification. As
an independent body, the NPCB reports directly to the President, and is aided by 147
Professional Certification Agencies (NPCB 2015). These Agencies are accredited
and authorized by the NPCB to conduct competency tests in their own facilities or atlicensed assessment centers. The NPCB and the Professional Certification Agencies
jointly issue the Certificate of Competency for individuals who have passed the skills
certification tests (Figure 9).

First Party Professional Certification Agencies are established either bycompanies to certify their employees, or by SMKs and tertiary vocational
institutions to certify their students’ learning outcomes;7

PROFESSIONAL CERTIFICATION AGENCY
8. Issuance of the Cerficate of Cmpetence

Certification is highly beneficial for the various stakeholders in Indonesia’s TVET
system. For workers, certification signals the competencies workers possess. Thesecertifications are recognized by the industry and related professional association,
and are useful for career progression. Certification also allows Indonesian workers towork overseas, in countries which have concluded skills and qualifications recognition
agreements with Indonesia. For the industries, employing certified workers helps
to reduce the lengthy recruitment process, as well as boost labor productivity andensure product quality. For the TVET providers, certification helps in assessing if thelearning outcomes of their graduating students or trainees match industry standards.

27

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

4. The Indonesian
Qualifications
Framework28

4. The Indonesian
Qualifications
Framework

The IQF was introduced to stratify the learning outcomes obtained through various
pathways into nine qualification levels (Figure 10). The IQF thus ensures consistency
in the learning outcomes obtained from formal education in SMK or tertiary vocational
institutions, as well as from self-study, trainings, professional working experience andvarious professional certification schemes. The IQF also synchronizes one’s learning
outcomes with career development tracks (Figure 10).
Figure 10. The Indonesian Qualifications Framework

Figure 11. Maximum Recognition for Competencies

IQF
Doctorate

Voc.
Doctorate

Specialist 2

Masters

Voc.
Masters

Specialist 1
Professional

Bachelor

6

D3

5

D2

4

SMK

Primary + Secondary School
ACADEMICPROGRAMVOCATIONAL PROFESSIONALPROGRAMPROGRAM

EXPERT

MAXIMUM RECOGNITION FOR COMPETENCIES BY USING THE RPL MECHANISM

EXPERT7

D4 / Voc. Bachelor

D1
SMA / MA

98

IQF Level After RPL

TECHNICIAN/ ANALYSTTECHNICIAN/ ANALYST

6

D4 / Voc. Bachelor /Bachelor Programs

D4 / Voc. Bachelor /Bachelor Programs + RPL

Profession / Voc.
Masters Programs

7/8

5

D3 Programs

D3 Programs + RPL

D4 / Profession
Programs

6/7

4

D2 Programs

D2 Programs + RPL

D4 Programs

6

3

D1 Programs

D1 Programs + RPL

D3 Programs

5

2

SMA/SMK/C Package

SMA/SMK/C Package+ RPL

D2 Programs

4

3
2

OPERATOROPERATORCAREERDEVELOPMENTS
BASED ON WORKTRAININGSCAREERDEVELOPMENTS
BASED ON PAST
EXPERIENCES

1

Source: DGHE (2012)

Under the IQF, learning outcomes are measured through the Recognition of Prior
Learning (RPL) mechanism, to map an individual’s learning and training outside
formal education institutions with comparable outcomes obtained through the formal
education system (Haksono 2015).

29

The RPL mechanism thus details the maximum recognition accorded to an individual’s
learning outcomes obtained through a combination of academic education, vocational
education, vocational trainings and professional working experience. Experts withqualifications equivalent to master’s or PhD degrees are equipped to teach at
tertiary education institutions even if they do not hold these formal degrees. The RPL
mechanism also allows students to accelerate their learning processes within theformal education system–students need not complete all the prescribed modules
if they have already acquired comparable competencies elsewhere. Moreover,recognizing the competencies obtained outside of school allows such skills to beacknowledged on a higher level within the IQF. For instance, an SMK graduate who
has attained vocational skills through work experience may continue his education
directly into a D2 program (Figure 11).

The Indonesian Qualifications Framework

4.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Initial IQF Level Before RPL

Source: DGHE (2013b)

4. The Indonesian
Qualifications
Framework

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future30

4. The Indonesian
Qualifications
Framework

The IQF also forms the basis of the development of the National Competency
Standard at Work (Standar Kompetensi Kerja Nasional Indonesia) which details theon-the-job requirements, knowledge, skills, expertise and work ethics relevant toperform tasks for a specific position.
At the national level, the MOM coordinates the formulation of the National
Competency Standards at Work. As of 2013, the MOM has issued 295 National
Competency Standards at Work for following sectors: 1) agriculture, plantation,
fisheries and forestry; 2) electricity, mining and energy; 3) manufacturing industry; 4)transportation and communications; 5) arts and tourism; 6) health; 7) financial andbanking; 8) construction; and 9) services, consultation and trade (MOM 2013).

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Futureon the IQF. Mutual agreements between Indonesia and the other ASEAN member
countries are in place for engineers, architects, accountants, land surveyors, andmedical and tourism professionals (DGHE 2013b). As such, workers from ASEAN
countries engaging in the aforementioned professions could work freely in Indonesia
as long as their skills are deemed to be on par with those outlined in the IQF.
Figure 12. The Multi Entry, Multi Exit System

PhD

Voc. Doctorate

Specialist 2

Masters

Voc. Masters

Specialist 1

Matriculation Program

Professional

Bachelor

To bridge the gap between what is learned in schools and the actual standards
demanded by the industries, curriculum development in SMK and tertiary vocational
institutions must adhere to the National Competency Standards at Work meant forthe courses offer. Exhibit 6 illustrates the development of the curriculum and learning
outcomes in a D3 Accountancy Program, based on the guidelines stipulated in the
IQF, the National Competency Standard at Work for an accountant, and the National
Education Standards for Higher Education.

The RPL Mechanism andMatriculation Programs will befurther elaborated and regulated
in Ministerial Regulations by the
MENC for SMK and the MORTHE
for tertiary education institutions.

Diploma 4 (D4)/
Voc. Bachelor
Diploma 3 (D3)
Diploma 2 (D2)
Diploma 1 (D1)SMA / SMK / Madrasah Aliyah

For the job market, the IQF is a useful tool which evaluates workers’ competencies.
With the establishment of the ASEAN Economic Community in December 2015,
competencies of local and foreign workers in Indonesia would be assessed based

RPL Mechanism

Change of education track

Stakeholders such as Professional Certification Agencies, training centers, andindustrial and professional associations could initiate the formulation of National
Competency Standard at Work, with such standards varying according to the needsof different occupations within the same sector.

The IQF has far-reaching implications for the education sector and the job market
alike. For the education sector, comparable learning outcomes allow an individual
to switch between the academic education track and the vocational education track
without penalty, in a system the MENC and the DGHE refer to as the “Multi Entry
Multi, Exit System” (Figure 12). For instance, the IQF enables an SMA graduate tomove across education tracks by enrolling in a D4 program (vocational bachelor
program) instead of an S1 program (academic bachelor program). Students who
intend to change education tracks but do not fulfill the minimum requirement havethe option of attending a matriculation program to prepare them for entering the new
education track. Indeed, the Multi Entry Multi Exit System increases an individual’smobility across the education system.

31

Source: DGHE (2012)Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

5. Integrating Information
and Communications
Technology in Education

5.

32

Integrating Information and Communications
Technology in Education
ICT plays an important role in strengthening the TVET. The Asian Development Bankemphasized the importance of ICT in TVET in the enabling of a skilled, “ICT-capable”
workforce, which is crucial for the transition a knowledge based economy (AsianDevelopment Bank 2009). The flexibility and accessibility of ICT has created various
opportunities such as Open Distance Leaning (ODL) and Open Universities, allowing
students and working adults residing in remote areas to access classroom learning
via communication devices. ODL addresses critical shortcomings of TVET such as
the lack of qualified instructors in particular areas, the need to deliver skills training ona large scale and at an affordable rate, and the need to introduce simulations which
the learners could apply to real-world situations.
Through encouraging the integration of ICT in the education sector, the MENC and
DGHE support Indonesia’s goal to become a knowledge-based economy by 2025.
The MENC has identified three key objectives in the engagement of ICT in its National
ICT implementation program (Table 4). First, ICT is used to develop long distancelearning in order to improve access to and quality of education for Indonesians
in rural and border areas. Next, ICT is harnessed to increase the efficiency andtransparency of school management. Finally, ICT is used as an information sharing

Table 4. The MENC’s ICT Implementation Program
INDICATORSINITIAL
YEAR(2009)

2010

2011

2012

2013

2014

Number of educational institutions
with internet connection

17,50025,83532,198 32,687

41,15444,352

Number of educational institutions
which conductne-learning withmultimedia and the internet

8,825

11,752

17,984 22,182

26,50030,950

Number of educational institutions
which conduct e-learning with radio,
audio-visuals, television and films

17,00017,62017,620 22,182

26,50030,950

Number of educational institutions
which implement e-administration

300

320

350

424

466

Source: MENC (2013)

TARGET385

5. Integrating Information
and Communications
Technology in Education

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

33

tool for the education sector. Notably, with the curriculum reform in 2013, ICT is nolonger a stand-alone subject but has since been merged with other subjects taught
in traditional education and TVET.
The private sector, exemplified by Microsoft, plays a significant role in improving
Indonesia’s traditional vocational education sector through the use of ICT. Microsoft
offered its cloud computing productivity suites Office 365 to Indonesian students
and teachers for free, to enable multi-stakeholders to work and collaborate
simultaneously (Hattari 2015). In September 2015, Microsoft provided the Office
365 free of charge to 3.5 million Indonesian teachers who are members of the
National Teacher Association (Alam 2015). Additionally, Microsoft also developed apartnership program with Yayasan Cinta Anak Bangsa (YCAB) foundation, a local
non-profit organization which provides counseling, vocational training, and youth
entrepreneurship. YCAB has successfully distributed Microsoft’s Office 365 to 500
marginalized youths to enable them to showcase their works as social entrepreneurs
and also gain technology skills for future employment. In 2015, YCAB trained 1,116
vocational students and granted 1,004 skills certificates (YCAB Foundation 2012;
YCAB 2014).
The use of ICT also benefited TVET and the higher education sector. Gadjah Mada
University (UGM) offers courses in traditional curriculum and TVET, where all students
must engage in two months of community services in rural environments. Students
could utilize Office 365 and various Microsoft productivity tools to connect with regularclassroom activities. Office365 and tools such as Lync Online or Skype (both arecommunication tool), OneDrive (a secure data storage) and OneNote (a digital notetaking program) were significant in enhancing the students’ learning experiences.
The instructors and students could upload lectures online, enable internet-based
discussions, and deliver academic results. UGM also developed its own portal,
known as eLisa, to support distant higher education across Indonesia. More than
60,000 students and 6,000 academic staff are estimated to benefit from the distancelearning programs (Microsoft Customer Stories 2015).
However, efforts to integrate ICT in Indonesia’s education sector remain slow due
to lack of ICT infrastructure and low IT literacy. IT literacy is common only in urban
areas. Likewise, access to electricity and technological hardware remain limited inrural areas, as the cost of establishing internet connections in rural areas four tofive times higher than in urban areas (Santoso 2015). As such, the MENC earnestly
encourages the private sector to assist in ICT infrastructure development.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

6. Policy Challenges

6.

34

6. Policy Challenges

To mitigate these challenges, the Indonesian Government welcomes non-educational
degree holders to pursue teaching careers. Graduates from pure academic programs
are often recruited to teach at SMKs or tertiary vocational institutions right upon
graduation. These new graduates have neither teaching experience nor industry
training, and therefore lack pedagogical, didactical and occupational competencies.
As such, some of these new graduates do not understand the goals of vocational
education, and adopt a highly theoretical approach to teaching instead of equipping
their students with work-ready skills (Kurnia 2015).

Negative Stigmatization
With the introduction of the Multi Entry, Multi Exit System, which enables students
to switch education tracks, more parents are beginning to view vocational education
positively, rather than as obstacles to their children’s career prospects or socioeconomic status. However, vocational education graduates are still perceived
negatively by employers, who tend to regard the competencies of vocational
education graduates as below industry standards. Many employers still find thatthey need to retrain the vocational education graduates they hire.

6.2

Shortage of Funding
Vocational education costs more to fund than an academic education because of
the smaller class sizes, and higher costs of materials for laboratory work, facilities,
equipment and technological upgrading involved. On average, the operational costsof SMKs and tertiary vocational institutions are at least twice the amount spent by
academic institutions (Asian Development Bank 2009). Government funding is one of
the main funding sources for public SMKs and public tertiary vocational institutions.
The bulk of the general funds transferred from the Central Government to the regions
have been used by the Provincial and District/Municipal Governments as salaries
government employees—including salaries for teachers, lecturers and school
administrators. Only 10% of these grants set aside for education are spent on nonsalary purposes (UNESCO 2006).

Since 2011, the MENC has provided pre-service training for non-educational
degree holders prior to the start of their teaching careers. While these pre-service
training programs are offered in certain universities with TVET teacher education
programs, such programs are only available to academic and vocational bachelor
degree holders in preparation for a teaching career in SMKs. Meanwhile, programs
to prepare bachelor, masters and PhD holders from a non-education program tobecome lecturers at tertiary vocational institutions are not available for now.
6.4

Shortage of Quality Vocational Teachers and Lecturers
Indonesia is facing an acute shortage of vocational teachers and lecturers amidst
the rapid increase in the number of SMKs and tertiary vocational institutions. The
MENC estimates that Indonesia needs 12,000 new SMA and SMK teachers by June2015 (Akuntono 2012), and 53,000 and 111,000 new lecturers by 2015 and 2025
respectively (MENC 2013). Indonesia does not have enough master and PhD holders
to teach at tertiary education institutions and this has hampered the DGHE’s target toLack of Incentives for Industry Involvement
Many companies are discouraged from participating in vocational education design
due to the lack of financial incentives. In general, companies fund activities related
to the education sector from their CSR funds. CSR programs allow companies togive back to society and companies are legally obligated to demarcate CSR funds
as part of their operational costs. For small and medium companies, the obligation toprovide CSR funds on top of paying business taxes proves burdensome. Moreover,
the MOF still imposes import tax and duties on machinery or goods donated to SMKs
and tertiary vocational institutions, rather than allowing for tax breaks on these in kind
donations.

6.5
6.3

35

establish 269 community academies by 2015. Instead, there are only 5 community
academies in 2015. The MENC is also likely to miss its expansionary target for SMKs
if shortages of SMK teachers persist.

Policy Challenges
Efforts to improve vocational education in Indonesia have intensified since 2005,
with both the MENC and MORTHE focus on increasing the number of SMKs andtertiary vocational institutions while ensuring the quality of curriculum and achievedlearning outcomes match with industry demands. The MENC and the MORTHE arealso implementing policies to increase the number of industry professionals to teachat SMKs and tertiary vocational institutions. Nevertheless, a number of challenges tothe future of vocational education in Indonesia remain.

6.1

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Poor Inter-Agency Coordination
Developing Indonesia’s vocational education system involves coordination acrossdifferent layers of government and across various governmental agencies. District/
Municipal Governments are involved with the development of SMK at the regional
level. The MENC and MORTHE, as representative of the Central Government, areresponsible for SMKs and tertiary vocational institutions. The NPCB is in charge ofthe certification of skills, and the accreditation of Professional Certification Agencies
and Assessment Centers. The MOM, together with the Ministry of Industry andTechnical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

6. Policy Challenges

36

industry associations, oversees the National Competency Standards at Work forthe various occupations. Each of these levels of government and governmental
agency wears a different agenda, and these are often not aligned with the MENC and
DGHE’s goal of improving Indonesia’s vocational education system. The absence ofa single coordinating body thus hinders inter-agency communications. It also creates
unnecessary confusion for non-governmental stakeholders.
6.6

7. Opportunities todevelop Indonesia’s
Vocational Education
System7.

Box 2. Inter-Agency Coordination within TESDA
Neighbouring Philippines’ experience in streamlining the management of technical and vocational
education training (TVET) offers invaluable insights for Indonesia.
In 1994, the Filipino Technical Education and Skills Development Authority (TESDA) wasestablished as the lead agency in the TVET system. TESDA performs multiple, simultaneousroles, including that of regulator, manager and promoter. It is also responsible for the accreditationof TVET assessors and the National Assessment Boards. Importantly, TESDA bridges the TVET
system and the private sector so as to foster industry participation.
Structurally, TESDA comprises the Secretariat and the Board. The Secretariat functions as
TESDA’s development and implementation arm, and is headed by a Director General who shares
the same rank as a cabinet minister.
The Board is chaired by a representative from the Department of Labor and Employment,
and comprises representatives from among employers, industry, labor, and private technicalvocational institutions.
Importantly, the Board coordinates all interactions among the various governmental bodies
involved in the TVET system. In fact, every governmental agency related to the TVET isrepresented in the Board, thereby ensuring efficient and effective inter-agency communications.
Consequently, the development of the TVET system in the Philippines is more coordinated andless bureaucratic than that in Indonesia.
Source: Syjuco (2015) and IMF (2013)

37

Opportunities to develop Indonesia’s
Vocational Education System
Despite its long history, serious effort to improve the existing system only came with
the implementation of the vocational education expansionary policy in 2005. Since
then, the Indonesian Government has emphasized vocational education as one of
the key strategies to boost the country’s economic development. Between 2001 and2010, the number of senior secondary students enrolled in SMKs increased by 158%
(OECD/Asian Development Bank 2015). This section explores various opportunities
for the Indonesian Government and other stakeholders to further improve thevocation education system as well as to increase the employability of graduates fromvocational institutions.

Indonesia’s Geographical Features
As an archipelago with more than 17,000 islands, huge discrepancies exist in theavailability and quality of education facilities between Indonesia’s big cities andremote areas (CIA 2013). In the remote areas in the eastern part of Indonesia inparticular, education facilities are non-existent or in abysmal condition. The long
distances which students have to travel in order to reach their schools as well as
the prevalence of teacher absenteeism pose additional challenges to the vocational
education system (OECD/Asian Development Bank 2015).

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

7.1

Improving the Employability of Vocational Graduates
Information asymmetry in the job market, where employers have more information
about the job market than job seekers, is particularly pervasive among new
graduates, including vocational institution graduates. Indeed, Indonesia shouldemulate the efforts taken by the Anglo-Saxon and Continental European countries toaddress such information asymmetries by offering career guidance to their students
as well by equipping them with invaluable internship experiences (World Bank 2010).
The vocational education institutions in these countries also provide job assistanceprograms and career counseling in cooperation with the government, non-profit
organizations, industry associations and private companies. Vocational graduatesin these countries also have access to these services online or at the nearest local
community and leisure sites (Company 2009).
In Indonesia, job assistance programs and career counseling are available, albeit
sporadically. The MENC routinely organizes the Annual SMK Expo of Competency
Products and Job Fairs for SMK Students (Annual SMK Expo). Some polytechnics
also conduct job fairs for their students, alumni and the general public.
Furthermore, the MOM has established the National Labor Market Information
Portal (Informasi Pasar Kerja Nasional), an online job-matching portal where job
seekers could apply directly to their desired employers. However, the portal remains
underutilized among employers, vocational students and new graduates. As such,
the MOM could consider cooperating with the MENC and DGHE to promote theportal more rigorously, possibly through the existing Annual SMK Expo and thepolytechnic job fairs.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

7. Opportunities todevelop Indonesia’s
Vocational Education
System7.2

38

Cultivating Public-Private Partnerships
Due to limited financial and technical capabilities, the Indonesian Government could
consider harnessing public-private partnerships (PPP) in the development of TVET.
Indeed, there is strong demand for PPPs in vocational education in the areas ofteacher/lecturer skills trainings, ICT trainings and the provision of educational facilities.
Throughout their teaching careers, vocational teachers and lecturers need to upgrade
their industry knowledge and skills continuously. As such, private companies could
invite these teachers and lecturers to learn and train in their factories.
To promote the increased usage of ICT in daily teaching and classroom learning,
vocational teachers and lecturers need to undergo relevant with ICT training.
According to Mr. Suparman, an education observer from Forum Edukasi, manyteachers aged 40 years old and above tend to score low on their teacher competency
tests as they do not have the skills to operate the computer or utilize the internet(Wurinanda 2015).8 Indeed, PPPs on ICT training could focus on topics such basic
computer use, introduction to the operational system, and computer hardware andsoftware, as well as on the effective use of internet for classroom teaching. The
private sector could also consider assist SMKs and tertiary vocational institutions
through the donation or loan of equipment such as computer hardware and software,internet connections facilities and screen projectors.

7.4

Incentivizing the Private Sector
Private sector involvement is essential to ensure that the industries’ perspectives
are incorporated into vocational education, and the skills gained by vocational
students meet industry standards. Moreover, resource contributions from the private
sector towards vocation education could also lighten the Government’s financial
responsibility. Indeed, the private sector could contribute through the donation offinancial resources, student scholarships, and equipment and machinery. Furthermore,

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

39
9

the private sector could lend their staff to SMKs and tertiary vocational institutions
as part-time teachers, and also provide internships for vocational education students
and teachers.

Building New SMKs and Tertiary Vocational Institutions
In line with the Universal Senior Secondary Education Program, the MENC estimatesthat the rough participation rate for students enrolled across SMAs, SMKs andIslamic senior high schools to reach 97% by 2020 (Directorate of SMK Development2015). As such, the MENC aims to build 200 new SMKs from 2015 (Saputri and Zuhri
2015). Likewise, the DGHE also plans to increase the number of tertiary education
institutions to meet the increased number of senior secondary school graduates. By
2025, 555 newly established polytechnics and 111 community academies would
have been built (MENC 2013 and DGHE 2013a). Furthermore, the MENC and DGHE
have promoted the establishment of private SMKs and tertiary vocational institutions,with special emphasis on polytechnics and community academies.

7.3

7. Opportunities todevelop Indonesia’s
Vocational Education
SystemThe Indonesian Government could further motivate the private sector to contributetowards the development of vocational education. In particular, financial incentives
such as tax exemptions could be offered to the private sector for expenses orresources and incurred for educational purposes.
7.5

Facilitating Long Distance Learning
With Indonesia’s vast geographical area and the inadequacies of education facilities
in the remote areas, the MENC and MORTHE should consider providing vocational
long distance learning as an option in the non-formal education system. Currently,
vocational education can only be accessed through the formal, classroom-basedlearning in SMKs or tertiary vocational institutions. Long distance learning would thus
provide a flexible option for students interested in vocational education, especiallyfor those who do not have access to SMKs and the tertiary vocational institutions.
Long distance learning leverages on the internet to deliver the vocational courses
remotely, where instructional materials are shared as video-on-demand (VOD)/
lecture-on-demand (LOD) and web documents. Examinations and evaluation
programs are also conducted online. Teachers/lecturers and students can alsointeract extensively online through on e-boards or discussion platforms. Indeed,
there are vast opportunities for the stakeholders in Indonesia’s vocational education
system to support long distance learning. These include engaging teaching and ICT
professionals in the development of web-based instructional. Private companies
and startups are also welcome to develop online teaching and learning platforms
for vocational education and training. Examples of established platforms include
the Web-Based Teaching and Learning System (WTLS) and e-TESDA, which aredeveloped by the Colombo Plan Staff College (CPSC)9 and TESDA respectively.

Exhibit 1

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Exhibit 1 General Information on Indonesia

Exhibits

Official name

The Republic of Indonesia

Political system

Multi-party democracy

Location

Southeast Asia, bordered by:- Malaysia and the Straits of Malacca in the north;- East Timor and the Indian Ocean in the south;- The Indian Ocean and the Andaman Sea in the west; and- Papua New Guinea and the Pacific Ocean in the east.

Land area

1,904,569 km2

Population (2013)

248,800,000

Major cities bypopulation (2010)- Jakarta(9.61 million)- Surabaya (2.77 million)- Bandung (2.39 million)

Language

Bahasa Indonesia

GDP (2013)

US$ 910.5 billion

GDP per capita (2013)

US$ 3,475.25

Real GDP growth (2013)

5.6%

Exports value (2013)

US$ 182,552 million

Imports value (2013)

US$ 186,629 million

Source: CIA (2013), World Bank (2015) and WITS (2015)

41

Exhibit 2

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

42

Exhibit 2

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

43

Table 5. SMK’s Curriculum Structure

Exhibit 2 SMK’s Curriculum Structure

COMPONENT			
					

•

SMK’s curriculum (Table 5) can be clustered into three types of subject:
1) Normative subjects emphasize the teaching of norms, customs, attitudes and behavior
		 applicable in Indonesia. Normative subjects include Religious Education, Civic Education, and		 Education and Arts & Culture.
2) Adaptive subjects equip students with basic principles and concepts of science and technology.
		
Adaptive subjects include English, Mathematics, Natural Sciences, Social Sciences, Computers
		 & Information Management Skills and Entrepreneurship.
3) Productive subjects equip students with competencies on par with the Indonesian Qualifications
		
Framework and in accordance with industry demands. Developing the productive subjects is the		 joint responsibility between the SMK and the industry partner. Productive subjects are		 thus specifically tailored to meet the different needs of each vocational program. Basic		Vocational Competencies and Vocational Competencies are considered as productive subjects.
•

Depending on the program, the duration of vocational education in SMK ranges from three tofour years.

•

SMKs apply a combination of learning methods, including face-to-faceinteraction, laboratory practice in schools and internship in business enterprises.

classroom•

By the end of their final year, SMA and SMK students must pass two National Examinations:
1) General National Examination only tests for Indonesian Language, English and Mathematics;
		and2) Productive National Examination assesses the students’ competencies according the National
		
Education Standard and the National Competency Standard at Work relevant to the vocational
		 courses offered by the SMK.
•

Both examinations are prepared by the MENC.

•The Productive National Examination involves internal and external assessors. Internal assessors
refer to SMK teachers and external assessors refer to the SMKs’ industry partners.

•

Upon graduation, SMK students will receive:1) Certificate of graduation as proof of passing the General National Examination; and2) Certificate of competency as proof of passing the Productive National Examination.

A. Subjects
1. Religious Education
2. Civic Education
3. Bahasa Indonesia
4. English		
5. Mathematics
		
5.1 Mathematics in SMK which specialize on Art, Tourism and			
Household Technology (Teknologi Kerumahtanggaan)
5.2 Mathematics in SMK which specialize on Social Subjects, Office			Administration and Accountancy		
5.3 Mathematics in SMK which specialize on Technology, Health			and Agriculture
6. Natural Sciences
		 6.1 Natural Sciences
		 6.2 Physics
			 6.2.1 Physics in SMK which specialize on Agriculture			 6.2.2 Physics in SMK which specialize on Technology
		 6.3 Chemistry			 6.3.1 Chemistry in SMK which specialize on Agriculture			 6.3.2 Chemistry in SMK which specialize on Technology and Health		 6.4 Biology
			 6.4.1 Biology in SMK which specialize on Agriculture			 6.4.2 Biology in SMK which specialize on Health
7. Social Sciences
8. Arts & Culture
9. Sports & Health Education
10. Vocational Subjects
		 10.1 Computers & Information Management Skills
		 10.2 Entrepreneurship		 10.3 Basic Vocational Competencies b)
		 10.4 Vocational Competencies b)
B. Local Content Education d)
C. Self-Development e)

INSTRUCTIONAL
HOURS
192
192
192
440 a)
330 a)
403 a)		
516 a)

192 a)
192 a)
276 a)
192 a)
192 a)
192 a)		
192 a)		
128 a)
128 a)
192
202
192
140
1,044 c)
192
(192)

Note:
a) The hours set above are the minimum instructional hours required by the MENC. Each SMK has the authority to add
more instructional hours for their students.
b) Consists of various vocational subjects, corresponding to the industry which the SMK decide to focus on.
c) The number of instructional hours is in line with the working standard competency applied in the professional world.
Each SMK must ensure that the instructional hours allocated for Vocational Competencies subject must not be lessthan 1,044 hours.
d) Local Content Education is a stand-alone subject aimed at exploring each region’s characteristics and prospective
areas for development. Each SMK designs its particular Local Content Education curriculum.
e) Self-Development comprises extracurricular activities where students can pursue their personal interest andtalents within the school environment. As a subject, Self-Development can be led by a teacher, a counselor orexternal professionals.

Exhibit 3

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

44

Exhibit 3 Education Structure in Indonesia

According to the Higher Education Act, the key differences between the varieties of tertiary
institutions lie in the type of education track and the number of disciplines offered.
Academic programs are available only in advanced schools, institutes and universities;
vocational programs are available in all tertiary institutions.
Universities may offer both academic and vocational programs, as well as professional programs.
Example: Jenderal Sudirman University offers degree programs in agriculture and foodengineering, accountancy and management, and dentistry. It also offers vocational
programs on industrial engineering, accountancy and secretarial services, as well as
professional programs for accountants, doctors, dentists and nurses.
Institutes may offer academic and vocational programs from a limited range of disciplines.
Example: Bandung Technological Institute offers different academic programs ranging
from agricultural engineering to urban planning–all of which stem from the disciplines ofengineering and technology.
Advanced schools (sekolah tinggi) may only offer academic and vocational programs on one
discipline.
Example: Al-Irsyad Advanced School of Health in Cilacap offers D3 and bachelor programson nursing, pharmacy, physiotherapy–stemming from the discipline of medicine.
Polytechnics may offer vocational programs from across many disciplines.
Example: Jakarta Public Polytechnic offers various vocational programs from thedisciplines of engineering, economics and business administration.
Academies (akademi komunitas) may offer vocational programs from a limited range of disciplines.
Examples: Jayakarta Nursing Academy and Fatmawati Nursing Academy offer only D3
vocational programs which focus on medicine, while all the classes offered by Darma
Agung Tourism and Hotel Academy focus on hospitality.
Community academies (akademi komunitas) are unique as they offer the least number of courses
among all tertiary education institutions. They may only offer D1 & D2 programs which correspondto their prioritized regional economic activities as laid out in the MP3EI.
Example: Nagekeo Public Community Academy only offers D2 vocational programs fromthe disciplines of chemical engineering and business administration.
Source: Higher Education Act (2012)

Exhibit 4

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Exhibit 4 Levels of Knowledge Mastery based on the
National Education Standards

Level of IQF Qualifications

Description of Knowledge Mastery

Program9

Mastering the philosophy underlying
a discipline; Mastering specific skills

Doctorate Program

8

Mastering theories and theirapplication within a discipline

Masters Program

7

Mastering the application theories
within a discipline; mastering specificskills to a profession

Professional Program

6

Mastering general theories andskills in a discipline; mastering
a set of specific theoretical concepts
and skills within a discipline

D4 / Bachelor / 		vocational Bachelor
Program

5

Mastering some general theories
and skills in a discipline

D3 Program

4

Mastering the basic principles,knowledge and skills in a discipline

D2 Program3

Mastering basic concepts and have a
D1 Program
complete understanding of the overall
operations			

2

Mastering basic concepts and havean understanding of basic operational
skills

SMK

Source: The Ministry of National Education’s Ministerial Decree No. 22 of 2006 on National Education Standards;
The Ministry of National Education & Culture’s Ministerial Decree No. 49 of 2014 on the National Education
Standards in Higher Education Institutions.

45Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Exhibit 5

46

Exhibit 5 Competencies at Work based on the Indonesian
Qualifications Framework
Level of IQF Qualifications

Description of Competencies at Work

Program9

Ability to deepen and expand on
knowledge and technology; Ability to
conduct multi and trans-disciplinary
research

Doctorate Program

8

Ability to expand on knowledge andMasters Program
technology through inter or 		
multi-disciplinary research

7

Ability to manage subordinates; ability
to apply minimum professional standards
applicable in their line of work; Ability todesign strategic development plans fortheir organization; Ability to conductmono-disciplinary research

6

Professional ProgramD4 / Bachelor / 		vocational Bachelor
Program5

Ability to finish work on general mattersby using different methods

D3 Program

4

Ability to finish work on general mattersand some specific cases by using different
standardized methods

D2 Program2

Source: Presidential Regulation No. 8 of 2012*

According to the National Education System Act and the Higher Education, tertiary education
institutions are free to develop their own curriculum, as long as these adhere to the following:

1)
The Indonesian Qualifications Framework (IQF)
2)
The National Competency Standard at Work for the vocational programs
3)
The MENC’s Ministerial Regulation No. 73 of 2013 on Implementation of the IQF in		
Higher Education
4)
The MENC’s Ministerial Regulation No. 49 of 2014 on National Education Standards in		Higher Education.
*
The curriculum is developed as a set of learning outcomes, or specific competencies achieved by
vocational students and graduates.
*

Figure 13 provides an overview of curriculum development process in tertiary vocational institution
based on the Indonesian Qualifications Framework.

*

The flowchart in Figure 14 illustrates the curriculum development process for a D3 Vocational
Program on Accountancy based on the IQF Level 5.

IQF

Found inside thePresidential Regulation
No. 8 of 2012

According to the Higher Education Act,the formulation of learning outcomesat this stage must involve thegovernment, industry associations
and other relevant stakeholders.

Description of learning outcomesin the Indonesian Qualification
Framework

Formulation of general learning
outcomes for similar vocational study
programs across Indonesia

9
8

6

SMK

47

Exhibit 6 Curriculum Development in Tertiary
Vocational Institutions

7

Ability to carry out a series of
D1 Program
specific tasks			
Ability to carry out one specific task
under direct supervision of the supervisor

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Figure 13. Overview of Curriculum Development in Tertiary Vocational Institutions

Ability to apply, review and create designs
by using knowledge and technology
		3

Exhibit 6

5

Formulation oflearning outcomesfor every subject
taught in thetertiary vocational
institution

4
3

Formulation of learning
outcomes used to design
the entire curriculum ofa study program offeredin a particular tertiary
vocational institution

Formulation of
specific learning
outcomes for similar
vocational study
programs acrossIndonesia

2
1

Done by the team of lecturers whoteach the particular subject. The
learning outcomes must refer to thestudy program’s curriculum designedby the curriculum development team.

Source: DHGE (2013b)

Done by the curriculum development
team inside each tertiary vocational
institution. Each tertiary vocational
institution’s vision and mission
statements are incorporated here.

Done by lecturers who teachsimilar study programs atvarious tertiary vocational
institutions across Indonesia
in a special forum.

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

Exhibit 6

48

Figure 14. Curriculum Development Process for D3 Vocational Program on Accountancy
Indonesian Qualifications Framework Level 5
The individual should be able to perform the following tasks:• choose the appropriate method from multiple standardized and non-standardized methods
which are available by analyzing data
• able to demonstrate performance to be appraised in qualitative and quantitative terms

Competencies Obtained by D3 Accountancy Program Graduates
Student with a degree from a D3 Accountancy program should be able to:• perform the role of an accountant in a large scale and/or publicly traded business entity• perform to the standards and principles accepted in the field of accountancy• analyze financial data and select the appropriate method, supported by skills in management,
ICT, and communications• possess expertise in interpersonal relations.

Learning Outcomes for D3
Accountancy Program Students

Subjects Offered in a D3 Accountancy
ProgramCompile financial report according tostandards and principles in the field of
accountancy

•
•
•
•

Introduction to Accountancy
Practicum for Introduction to Accountancy
Intermediate Financial Accountancy
Practicum for Intermediate Financial
Accountancy

Calculate cost of goods and write financial
report in manufacturing company••

Accountancy on Counting Costs
Practicum for Accountancy on Counting
Costs

Present information on management
accounting•

Management Accountancy

Audit financial report on compliance andauditing; create worksheet for audits

•
•

Audit
Practicum for Audit

Source: Jati (2013)

Notes and
References

Notes andReferences

Technical and Vocational Education and Training inIndonesia: Challenges and Opportunities for the Future

50

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Footnotes
1

These grants can only be used for the specified purpose of infrastructure spending and are intended
as matching grants. For every project related to the construction or renovation of education
infrastructure in the regions, 90% of the costs are paid using the specific grants and the remaining
10% is paid by the Local Governments.

2

There are 34 Provincial Governments, 416 District Governments and 98 Municipal Governments inIndonesia (Ministry of Domestic Affairs 2015).

3

The MENC does not have the authority to transfer private teachers from one school to another asprivate teachers are not hired by the Government of Indonesia.

4

The cases of Genuk and Sayung municipalities in Central Java illustrate the Provincial Government’s
role in managing shared education facilities across municipalities. The education facilities in Genuk,
which are in better condition that those on Sayung, serve 12% of Sayung’s residences on a daily basis(Brahmantiyo 2007). The Provincial Government of Central Java needs to ensure that the residents
of both municipalities receive education of the same quality despite differences in the quality of
their facilities.

5

Religion is one of the areas exempted from decentralization, and religious schools remain centrally
managed by Ministry of Religious Affairs (MORA).

7

The Ministry of Agriculture, Ministry of Industry and Ministry of Trade manage their own small-scale,public vocational training centers. Certification Agencies will be conducted jointly with Third Party
Professional Certification Agencies.

8

The teacher competency test is an online computer based test conducted by the MENC. The test
results for 2012 and 2014 reveal that most Indonesian teachers do not meet the minimum national
professional standard (Halmien 2014; Akuntono and Wahono 2012).

9CPSC is an international inter-governmental organization whose goal is to enhance the quality of
TVET in Asia Pacific. CPSC provides training to professionals actively involved in the TVET sector in its
member countries. CPSC member countries are Afghanistan, Bangladesh, Bhutan, Fiji, India,
Malaysia, Maldives, Mongolia, Myanmar, Nepal, Pakistan, Papua New Guinea, Philippines, Singapore,
Sri Lanka and Thailand (Colombo Plan Staff College 2015).