Indonesia's skills snapshot
Developing the relevant skills
- How well does Indonesia’s education system perform? In the 2009 PISA tests of 15-year-olds, Indonesia performs below the OECD average in reading (rank 57), mathematics (rank 61) and science (rank 60).1
- Does Indonesia invest enough in education and training? Indonesia spent 3.6% of its annual income on education in 2010, compared to the OECD average of 6.2% in 2009.2
- Is there scope to improve skill utilisation in Indonesia through strengthening labour force participation? In 2011, the labour force participation rate of Indonesia was 68.3%.2 The participation rate for prime-age women (aged 25-54) was 59.5%.3
- Is there scope to improve skill utilisation among Indonesia’s youth? The participation rate for youth (aged 15/16-24) was 50.6% in 2009.4 In the same year, the rate of Indonesia’s youth neither in employment nor in education or training (NEET) was 30%, a relatively high rate in comparison with the OECD average of 18.6%.5
- To what extent are Indonesia’s older workers supplying their skills to the labour market? In 2009, 55.6% of people aged 55 to 64 were in the labour force.6
- How smooth is the transition from school to work for Indonesia’s youth? In 2012, the unemployment rate of Indonesia’s youth (aged 15/16-24) was 20%, a relatively high rate compared with the OECD average of 17.1%.7
Key recommendations from the OECD Skills Strategy
A country can develop the relevant skills by encouraging and enabling people to learn throughout life; fostering international mobility of skilled people to fill skills gaps; and promoting cross-border skills policies.
A country can activate the supply of skills by encouraging people to offer their skills to the labour market and retaining skilled people in the labour market.
A country can put skills to effective use by creating a better match between people’s skills and the requirements of their job and increasing the demand for high-level skills.
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