The World Of Education And Industry Needs Collaboration To Reduce Unemployment Rates In Indonesia

Illustration (Photo: Doc Antara)

JAKARTA - The Central Statistics Agency (BPS) recorded that until February 2024 the number of unemployed in Indonesia reached 7.2 million people.

Meanwhile, Indonesia's Open Unemployment Rate (TPT) in February 2024 reached 4.82 percent.

This number decreased by around 790,000 people from the same period the previous year with a TPT of 5.45 percent.

However, this figure is still considered high, especially if you look at the number of 12.11 million unemployed people.

The Dean of the Faculty of Economics and Business, University of Indonesia (FEB UI), Teguh Dartanto, said that the unemployment rate in Indonesia is still relatively high and there are a number of solutions that policy makers can take to solve these problems.

Teguh detailed that to reduce the problem of unemployment and half unemployment, the link and match of the world of education with industry needs to be strengthened, economic transformation that is in line with education, incentives for labor-intensive industries and the creation of quality jobs.

He considered that links and matches may not be too problematic for well-known universities such as the University of Indonesia (UI), Gadjah Mada University (UGM) and the Bandung Institute of Technology (ITB).

However, Indonesia is not only UI, ITB and UGM, but there are thousands of other universities that produce millions of new workers that are difficult to absorb in the labor market.

"We need to think about how to encourage the creation of new jobs and links and match can really go well," Teguh said in a written statement, Wednesday, July 3.

According to him, strengthening links and matches is important.

Because, when his party interacts with the business world, not infrequently the topic of discussion is the difficulty of finding quality talent.

However, on the labor side, it is often conveyed that job opportunities are not sufficient.

The point, said Teguh, is that in this case, the economic transformation strategy pursued by the world of education is not synergized.

He gave an example, the downstream nickel policy that requires many metallurgical experts.

However, Teguh continued, quality metallurgical graduates in the country are still considered insufficient.

"This means that there must be an alignment between economic transformation, long-term economic planning, and how the world of education is. This is the main thing besides the link and match. Indeed, in the big context is the alignment between economic planning and how the world of education is moving to meet the needs of the world of work," he said.

According to Teguh, the government must also focus not only on increasing access to education but also on improving quality.

Many universities have scored many graduates who are not accompanied by competence in the labor market.

Quality education will reduce the link and match problem.

Therefore, the main solution cannot only be short-term. But medium and long-term.

The short-term solution, continued Teguh, can be achieved, such as through the pre-employment card program from the government.

The program needs improvement and will be continued by the upcoming government.

"That may be one of the solutions that can be used. But what we encourage is also not only online and offline websites and training, but what kind of work will he do after this training. It must be comprehensive, not only practicing or being trained. But after being trained there is also absorption and absorption of what kind," he said.

Next, the government needs to provide a kind of tax holiday for companies that are able to attract a lot of labor or labor-intensive industries.

This means that incentives should not only be given to those interested in investing.

In addition, the government also needs to conduct socialization related to the use of super tax deduction policies for the business world and industry to collaborate in training/training.

Thus, Teguh said, the younger generation or the workforce can be fully absorbed and contribute to the nation's resilience.

"Young people should not be frustrated. Don't be a burden in the future so that the demographic bonus is only an issue, only a jargon or opportunity. But it must be realized for the progress of the nation," he concluded.