Indonesia sets goal to boost factory labor productivity by 18.7% by 2029

Indonesia’s new industrial strategy seeks to lift per-worker manufacturing earnings from Rp124.35 million in 2025 to Rp147.7 million by 2029, an 18.7% rise. Minister Muhammad Sarmuji emphasizes that investment and technology must be matched by a competent, adaptable workforce. To achieve this, vocational education will be tightly aligned with employer requirements through a "link and match" model and dual-education pathways.

The Industrial Human Resource Development Agency, led by Acting Head Adie Rochmanto Pandiangan, will enhance curricula, teacher capabilities, facilities and industry collaborations across 13 higher-level institutes, nine vocational high schools and seven training centers. Strong applicant interest—over 61,000 for higher-level programs and 33,000 for high schools—offers a solid base, though quality improvements are still needed. The medium-term plan also targets 89% competency among industrial workers and an 88% employment rate for skilled graduates by 2029.