Indonesia - Preparing Indonesian Youth for Transition : Issues and Policy Agenda for Senior Secondary Education

Abstract

With the globalized economy, well-educated youth will be critical to Indonesia s competitiveness in the future. Demand for skilled workers will increase with skill-oriented technological change. In addition, a large pool of skills also facilitates knowledge spillover and attracts technology imports. In the past decades, significant changes of Indonesia s labor market have already taken place. Non-agricultural jobs increased significantly, and skilled labor in non-agricultural sector is on higher demand. In the meantime, higher level professional and managerial jobs have also increased. In contrast, unskilled, agricultural, and administrative workers are on lower demand. Overall, the earnings differentials between people with different education levels are significant. The marginal returns to higher levels of education - senior secondary or tertiary level - are increasing. How to educate the youth and turn them into productive labor force and future leaders is closely linked to the country s future. This sector report assesses Indonesia s senior secondary school system from three angles: (1) how well does the senior secondary education prepare the Indonesian youth for transition? What are the outcomes? Is there equitable access? (2) How are the senior secondary schools in Indonesia prepared for delivering their promises? Do they have adequate resources and inputs? (3) How is the system prepared? Are there effective quality assurance mechanisms? Is the system financing arrangement adequate? The report ends with policy recommendations.