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Indonesia's higher education system : how responsive is it to the labor market (English)

The growing middle class and subsequent growth in the internal market, rapid urbanization, and the opening up of ASEAN markets bring both opportunities and challenges. A skilled labor force is crucial to leveraging these opportunities. Innovation-driven economies therefore require a labor force with a high level of skills, and higher education is the main provider of these skills. The Government of Indonesia has made a great commitment to education by drastically increasing investment in the sector and instituting important reforms at all levels of education. This has led to rapid increases in access, especially for the poor and at the level of secondary education. As the system expands so rapidly, it is important to ensure that the sector is preparing graduates for the labor market. The recent literature on skills highlights the complexity of the skills that are demanded and used in the labor market beyond technical and cognitive skills to include behavioral and social skills and the need to see if there is evidence of mismatches or of graduates entering the labor market without the right skills. There may be a need to explicitly establish and incentivize active forms of collaboration between higher education institutions and the private sector. These may take the form of contracts for research, internships, and apprenticeships and staff exchange programs.


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    East Asia and Pacific,

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    Indonesia's higher education system : how responsive is it to the labor market?

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    Labor Market;Higher Education;Levels of Educational Attainment;access to higher education;Public and Private Institution;higher education institution;supply of graduate;return to education;labor market demand;public sector job;higher education system;teacher training program;teacher training college;number of workers;labor market information;employability of graduate;availability of labor;investment and development;quality assurance system;Local Economic Development;higher education quality;higher education sector;skills of graduate;social service sector;commitment to education;per capita consumption;growth in enrollment;degree of specialization;expansion of access;labor force growth;private sector employment;salary for teacher;public sector employment;skilled labor force;demand for skill;labor market opportunities;lack of autonomy;secondary school enrolment;oversupply of teacher;demand for professional;higher education market;private sector job;civil service staff;partnership with industry;senior secondary education;community college;Financial Sector;employment growth;vocational stream;accreditation system;private provider;Public Services;certified teacher;Social Sciences;academic stream;working condition;Basic Education;skill mismatch;financing system;poor household;female enrollment;manufacturing sector;



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Indonesia's higher education system : how responsive is it to the labor market (English). Policy brief Washington, D.C. : World Bank Group.