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Indonesia plans 18.7 per cent gain in factory worker productivity

The 2029 goal is backed by vocational training plans, with targets for workforce competency and graduate employment.

By Maya Santos

Industrial machinery on a factory production floor
Photo: Antara News

Manufacturing productivity in Indonesia is targeted to reach Rp147.7 million per worker by 2029, up from Rp124.35 million in 2025, under an Industry Ministry roadmap. The planned 18.7 per cent increase forms part of the ministry's efforts to strengthen national competitiveness.

Industry Minister Muhammad Sarmuji said developing workers' capabilities was essential to achieving the goal. Investment and technology alone were insufficient, he said; industry also needed adaptable employees with skills suited to its requirements.

Sarmuji called for vocational courses to reflect employers' needs through dual education systems and closer links between training providers and industry. He said workers' competencies must evolve alongside advances in automation, cybersecurity, digital technology and data analytics.

The Industrial Human Resource Development Agency (BPSDMI) operates a training network comprising 13 higher education institutes offering vocational programmes, nine vocational high schools and seven centres for industrial training. Acting agency head Adie Rochmanto Pandiangan said it was strengthening teaching, curricula, infrastructure and industry partnerships to meet demand from employers.

By June 30, applications to the higher education institutes numbered 61,744 against 4,566 available places. The vocational high schools recorded 33,592 applicants seeking 2,749 places. Adie said the interest supported efforts to develop industrial talent, although training quality still required improvement.

BPSDMI also aims for 89 per cent of industrial human resources to meet competency requirements by 2029. Its medium-term roadmap sets a separate target of 88 per cent employment among skilled vocational graduates.

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