What the labor market is looking for: skills
Minister of Labor (Menaker) Yassierli stated that the government continues to strengthen the labor market so that staff competencies align increasingly better with the needs of the business community.
This step is being taken to bridge the gap between staff skills and the changing needs of the business community.
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“The labor market is currently looking for skills, and I am convinced that APINDO (Indonesian Employers’ Association) agrees: ‘Skills First’ is one of the keys to our competitiveness,” said Yassierli during a dialogue session at the 35th National Coordination Meeting (Rakerkornas) of the Indonesian Employers’ Association (APINDO) in 2026 in Makassar, South Sulawesi.
According to the Minister of Labor, the needs of the business community are changing rapidly, while the supply of employees with the right skills is lagging behind.
This situation causes many companies to struggle to find the necessary personnel. He revealed that more than 80 percent of companies in various countries still struggle to find employees with skills that align with sector needs.
On the other hand, approximately 36 percent of employees experience a mismatch, a situation where their competencies do not match job requirements.
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“Reality shows that formal education and academic qualifications on paper are no longer an absolute guarantee of a person’s actual competence,” he said.
To address this challenge, the government is committed to the transition from the old model to a skills-based labor market, an approach that prioritizes competence as the key factor in the recruitment and workforce development process.
From the OECD’s perspective, this approach is based on two key steps. First, strengthening skills development through modular learning and micro-certificates as proof of more specific competencies.
Second, expanding the recognition of a person’s existing skills through the system of recognition of prior competencies, while simultaneously encouraging companies to prioritize skills over academic qualifications during recruitment.
He hopes that the synergy between the government and the business community, including APINDO, can accelerate the realization of a labor market that aligns with the needs of the business community and the competencies of the workforce, thereby increasing national competitiveness and strengthening economic resilience amidst global fragmentation. ***rel
