Jakarta. Indonesia must expand vocational education to enhance workforce skills in the technology sector and attract significant investment in the industry, Investment Minister Rosan Roeslani said on Friday.

Speaking at the Investor Daily Roundtable held at the Ritz Carlton Pacific Place in Jakarta, Rosan noted that a large proportion of the country's workforce consists of individuals with only elementary-level education.

"Many of our workers have an elementary education background, and we need to address this issue," Rosan said. "A massive and large-scale vocational education program is essential."

This initiative aims to ensure that Indonesia’s labor force aligns with the needs of modern industries, particularly in technology.

Rosan also pointed out Indonesia's rapid population growth, comparing it to smaller nations, to emphasize the urgency of improving education and employment opportunities.

"Every two years, the number of births in Indonesia equals the entire population of a small country," he said. "With 2.6 million babies born annually, our population growth rivals that of Singapore, which has about 5.5 million people."

He warned that without adequate job creation and alignment between the education system and labor market demands, the country could face serious demographic problems.

"Our most pressing challenge is to create as many jobs as possible," Rosan said.

According to the Central Statistics Agency (BPS), elementary school graduates account for 36.54 percent of Indonesia’s workforce, or approximately 51.95 million people -- a proportion that has been steadily declining in recent years.

High school graduates make up 20.55 percent (29.22 million), followed by junior high school graduates at 18.15 percent (25.81 million). Vocational school graduates, equivalent to high school level, represent just 12.09 percent (17.18 million) of the labor force.

Job seekers with university degrees or higher account for 10.28 percent (14.62 million), while those with college diplomas comprise a small share of 2.39 percent (2.4 million).

Rosan concluded by emphasizing the importance of aligning Indonesia's education system with industrial demands to support economic growth and meet the needs of the technology sector.
 

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