Coordinating Economic Affairs Minister Airlangga Hartarto said stronger vocational training was essential to equip workers with skills matching market demand.
“This program follows the president’s directive for the second-half 2026 economic stimulus package,” Airlangga said Tuesday at the launch of Batch IV in Tangerang, Banten.
He said the initiative must be implemented effectively, targeted accurately and deliver direct benefits to the public.
Stronger vocational training is also needed to ensure investment growth is matched by workforce readiness, Airlangga said.
Investment realization reached 1,010.6 trillion rupiah (US$56.9 billion) in the first half, up 7.2 percent from a year earlier and reaching 49.5 percent of the annual target.
The investment created about 1.4 million jobs nationwide, he said.
The open unemployment rate fell to 4.65 percent, but young people still accounted for about 67 percent of the unemployed, or roughly 4.8 million people.
The figures highlight the need to strengthen workforce skills to meet industry demand and narrow gaps between job seekers’ abilities and available positions.
Economic restructuring is also driving demand for new skills, particularly in the digital and green economy sectors, Airlangga said.
In the green economy, demand is expected to grow with renewable-energy adoption, including for solar panel technicians, wind turbine engineers and workers skilled in smart farming.
The vocational program targets about 340,000 participants this year. Some 70,000 are funded through last year’s budget, while 270,000 receive support from the second-half 2026 stimulus package.
As of August, 89,337 participants had completed training, while 12,128 joined the newly launched Batch IV program.
Coordinating Ministry for Economic Affairs spokesman Haryo Limanseto said vocational training must reflect actual labor-market needs as industries undergo transformation.
He also called for closer government-business cooperation on upskilling and reskilling to strengthen workers’ ability to adapt to technological and industrial changes.
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Translator: Bayu Saputra, Raka Adji
Editor: Rahmad Nasution
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