ILO promotes skills development fund mechanism for Indonesia

© ILO

JAKARTA, Indonesia (ILO News) - Diego Rei, the ILO’s Employment and Labour Market Policy Specialist, participated in the second interactive session during the launch of joint programmes between the Government of Indonesia and the United Nations on 10 June. These programmes, valued at US$ 3.15 million, support the implementation of the Indonesia Roadmap for the Global Accelerator on Jobs and Social Protection for Just Transitions.

The ILO has been collaborating on the Indonesia Roadmap and its joint programmes alongside UNICEF, UNDP, and the World Bank. Senior officials, technical staff, and representatives from the Coordinating Ministry of Community Empowerment and the Ministry of Manpower emphasized the significance of integrated and inclusive social protection and lifelong skills development in two panel discussions. 

The SDF can support SMEs in upgrading their skills through reskilling and upskilling programmes, helping them transition to new employment opportunities with new upgraded skills.

Diego Rei, the ILO’s Employment and Labour Market Policy Specialist 

While discussing inclusive and sustainable skills development systems, Diego highlighted the urgent need to establish a skills development funding (SDF) mechanism in Indonesia. SDFs are dedicated funds that often operate outside traditional government budget channels and have been implemented in 70 countries.

However, he acknowledged that many aspects of the mechanism are still under discussion, including who will finance it, how it will be collected and managed, and who the beneficiaries will be. 'We haven’t reached a consensus yet, but we hope that through this program, we can find the answers to define what should happen next and more forward with the efforts in building this mechanism for the country,' he stated."

He also added that the SDF is expected to address various skills development barriers faced by small and medium enterprises (SMEs), enabling a fair and smooth transition amid environmental and climate changes. 'The SDF can support SMEs in upgrading their skills through reskilling and upskilling programmes, helping them transition to new employment opportunities with new upgraded skills.”

© ILO

In addition, Diego emphasized the important role of public employment services counsellors in Indonesia's employment system to enhance job placement quality and promoting inclusive employment opportunities. Their responsibilities go beyond connecting job seekers with employers, but also support micro, small and medium-sized businesses (MSMEs) and self-employed workers.

These programmes are designed to deepen their [ public employment service counsellors] understanding of the needs of people with disabilities and emphasize the significance of inclusive workplaces that ensure equal employment opportunities.

The ILO, he noted, has been assisting the Ministry of Manpower in enhancing the capacity and skills of public employment service counsellors through various training programmes and initiatives. "We plan to organize inclusiveness training programmes for these counsellors in the near future. These programmes are designed to deepen their understanding of the needs of people with disabilities and emphasize the significance of inclusive workplaces that ensure equal employment opportunities."

Another speaker from the Ministry of Manpower, Abdullah Qiqi Asmara, Director of Development for Standardization and Competency, highlighted key initiatives by the ministry to foster inclusive workplaces. One such initiative is the Disability Service Unit, available at Provincial Manpower Offices, which enhances access to employment, training, and apprenticeship programs for workers with disabilities.

Meanwhile, Anastasiya Denisova, Senior Economist at the World Bank, shared best practices advocating for a holistic approach—starting with early education for people with disabilities—to equip them with future skills and competencies that align with labour market demands.