Jakarta. The administration of President Prabowo Subianto marked its second anniversary on Oct. 20, 2026. Over the past two years, efforts to improve human capital, develop the tourism sector, and expand financing access for micro, small, and medium enterprises (MSMEs) have continued to advance as part of the government’s drive to boost economic productivity and broaden public participation in national development.

Various strategic programs have been accelerated, ranging from apprenticeships and vocational training to bridge the gap between industry needs and workforce skills, to tourism development to stimulate economic growth, and the distribution of People’s Business Credit (KUR) to millions of MSMEs to help them grow and move up the value chain.

Strengthening a Competitive Workforce

To develop human capital, the government launched the National Apprenticeship Program for University Graduates in October 2025, with an initial target of 100,000 participants. The program is designed to bridge the gap between graduates’ skills and labor market requirements by providing hands-on experience at businesses, industrial companies, state-owned enterprises (SOEs), and government institutions. Participants also receive stipends equivalent to the applicable minimum wage and employment social security coverage.

The program addresses one of the key challenges facing fresh graduates entering the labor market: the need for professional experience. Through apprenticeships, university graduates are expected to develop technical skills, a strong work ethic, and the ability to adapt to industry requirements.

“Job vacancies are usually filled by graduates who have already worked or have secondary experience. For first-time job seekers, or fresh graduates, the first question they face when applying for a job is usually about their work experience. This is where the apprenticeship program helps bridge the gap,” said Haryo Limanseto, spokesperson for the Coordinating Ministry for Economic Affairs.

Efforts to improve workforce readiness continued in 2026 through the expansion of apprenticeship and vocational training programs. The second phase of the National Apprenticeship Program targets 150,000 fresh graduates, backed by a budget of Rp 4.14 trillion. Meanwhile, vocational training programs have been allocated Rp 2.12 trillion, prioritizing 220,000 vocational high school graduates and 50,000 workers affected by layoffs.

Overall, the National Vocational Training Program for 2026 targets around 340,000 participants, comprising 70,000 initial participants and an additional 270,000 through the second-half 2026 economic stimulus package. As of August 2026, a total of 89,337 participants had taken part in vocational training.

“Going forward, we must make full use of all available facilities, not only those owned by the central and regional governments but also those provided by industry,” Haryo said.

Tourism as a Growth Driver

Alongside efforts to improve workforce readiness, tourism development has become an important part of the government’s strategy to expand economic activity and create business opportunities across the country. Tourism is closely linked to various sectors, including transportation, accommodation, food and beverages, the creative economy, and micro and small businesses operating around tourist destinations.

In 2025, Indonesia recorded 15.39 million international tourist arrivals and approximately 1.2 billion domestic tourist trips. The tourism sector generated $18.28 billion in foreign exchange earnings, supported 25.91 million jobs and contributed 3.97% directly to gross domestic product (GDP). Tourism investment reached Rp 73.55 trillion that year.

Positive momentum continued in 2026. From January to August, international tourist arrivals reached 10.58 million, up 5.38% from the same period a year earlier. Domestic tourist trips totaled 842.15 million, growing 4.29%. Tourism foreign exchange earnings reached $8.43 billion in the first half of 2026, while investment in the sector grew 16.64%.

“We must pursue tourism as a low-hanging fruit. It is also a major source of foreign exchange earnings. So, just as we encourage domestic purchases, we should also promote the tourism sector,” Haryo said.

To maximize this potential, tourism development continues to be accompanied by efforts to improve destination quality, connectivity, workforce skills, and local community participation. The goal is to ensure that rising tourist numbers translate not only into increased visitor activity and foreign exchange earnings but also into greater opportunities for local businesses and broader economic benefits for regional communities.

Empowering Communities Through KUR

Alongside efforts to expand employment and business opportunities, the government continues to strengthen financing access for MSMEs through KUR. The program provides business owners with access to capital through credit schemes supported by government policies while encouraging financing for productive sectors.

“KUR does not merely provide access to financing. It genuinely encourages productive businesses to grow and move up the value chain,” Haryo said.

In 2026, the government continued to strengthen KUR distribution, directing more financing toward production-oriented sectors. As of Sept. 23, KUR disbursements had reached Rp 232.66 trillion, benefiting 3.61 million borrowers and supporting approximately 10.83 million workers. The figures reflect continued efforts to expand MSMEs’ access to capital while strengthening their business capacity, competitiveness, and contribution to the national economy.

The development of human capital through apprenticeships and vocational training, tourism promotion, and expanded MSME financing demonstrates the links between skills development, economic activity and community entrepreneurship.

During the first two years of Prabowo’s administration, programs to strengthen human capital, develop tourism, and empower MSMEs through KUR have recorded positive progress, providing a foundation for more inclusive and productive economic growth.

Going forward, the continuation and expansion of these initiatives are expected to create more employment opportunities, improve productivity and business competitiveness, and ensure that the benefits of economic growth reach a broader segment of society.

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