Kadin Indonesia has assessed that the vocational education and training system in Indonesia requires strategic improvements to address various challenges in the industrial sector, including:

• Discrepancies between human resources and job market demands.
• Limited access to practical training in the industry, especially for students in vocational high schools.
• Curriculum that is less relevant to industrial needs.
• Industrial development is progressing faster than the improvement of vocational education and training systems in schools and training institutions.
• The public perceives vocational high schools as secondary to general high schools.
• There is limited interest from companies to invest in vocational education and training.

In line with the government's priority to reform the vocational education and training system in Indonesia, Presidential Regulation No. 68/2022 on the Revitalization of Vocational Education and Training, appoints Kadin Indonesia as a partner of the government to ensure the comprehensive and integrated implementation of demand-driven vocational education. The regulation assigns Kadin Indonesia’s tasks including:

• Creating and revising the most recent National Competency Standards for Indonesia (SKKNI).
• Supporting the availability of educators and instructors who meets competency standards (SKK).
• Establishing vocational education and/or training institutions in prioritized areas, such as Special Economic Zones (SEZ), Industrial Zones, and bonded zones.

Aligned with the government's priorities, Kadin Indonesia has identified 7 priorities to focus on until 2024, including:

1. Building a shared vision, commitment, and coordination system through a single supervisory body, the National Vocational Training Coordination Team (TKNV).
2. Strengthening the governance system within the vocational education and training landscape.
3. Developing regulatory harmonization of vocational education, curriculum frameworks, and standards across various ministries.
4. Developing a National Vocational Strategy (Stranas) oriented towards industrial needs.
5. Develop recommendation of a Skill Development Fund.
6. Promoting the implementation of vocational education and training in regions with vocational ecosystems initiated by companies, prioritized in Industrial Zones, Special Economic Zones, and bonded zones.
7. Building the image of vocational education and training.