As Indonesia’s economy powers forward – with GDP forecast to grow over 5% in both 2024 and 2025 – the nation finds itself brimming with potential, yet challenged by a widening talent gap. With a labour force surpassing 153 million in 2025, employment figures are up, but about 30% of companies still report struggling to find people with the right skills.

The root of the problem is a growing mismatch between the skills workers possess and what industry actually needs. This disparity fuels low productivity and bottlenecks in talent supply – a pain point that has pushed both government and business leaders to rethink how skills are developed and deployed.

In response, Indonesia is doubling down on vocational education, digital training, and innovative industry partnerships.

Qualifications alone don’t cut it anymore. Today’s talent game is about capability over credentials, with companies shifting towards a skills-first hiring mindset.

Aligning education with demand: Government leads the charge

The Indonesian government is rolling out vocational and digital training at scale. In 2024 alone, more than 3,300 vocational programmes were launched, focusing on fast-growing sectors like digital tech, renewable energy, and medical technology. These programmes are designed to arm workers with industry-relevant, hands-on skills.

Initiatives such as the Digital Talent Scholarship and Digital Literacy Academy aim to build a robust digital workforce to support Indonesia’s ambition of nurturing 9 million digital professionals by 2030 – part of the broader vision of powering a US$366 billion digital economy.

Equally important is the push to certify skills in line with global benchmarks. This ensures Indonesian workers aren’t just job-ready at home but also competitive abroad, expanding their mobility and value in international labour markets.

Corporate champions: Indonesian companies walking the talk

While the government lays the foundation, companies are stepping up with homegrown success stories in talent development. From tech to manufacturing and public service, here’s how Indonesia’s leading organisations are making workforce investment pay off.

PT Asam Jawa

Based in North Sumatra, this company demonstrates that consistent, structured training leads to strong results. By frequently upskilling employees and offering clear career pathways, PT Asam Jawa has seen higher motivation, better job performance, and stronger retention – proof that continuous learning and employee commitment go hand in hand.

PT Harrison Assessments Indonesia

This talent management consultancy helps clients select, retain, and develop high-potential staff. Their model blends global best practices with local insight through assessments, workshops, and leadership coaching, giving companies a clearer view of their talent pipelines and improving succession planning.

DKI Jakarta Provincial Government

Public sector innovation is alive and well in the capital, where the Jakarta Corporate University is driving talent acquisition, development, and retention among civil servants. Backed by top-level leadership and policy support, this initiative is building capacity while addressing structural challenges like cross-agency cooperation and operational guidelines.

Electronics sector collaboration: Panasonic and Cevest Bekasi

Through a landmark partnership with Cevest (Centre for Vocational and Extension Service Training), Panasonic and the Matsushita Gobel Foundation are upskilling and reskilling workers in the electronics sector. It’s a classic win–win: companies get future-ready talent, while the public sector gets training aligned with real industry needs.

What the best employers are getting right

Continuous learning: Firms are using cloud platforms like Amazon Web Services to deliver up-to-date digital training – now offered in Bahasa Indonesia to reach more learners.

Career clarity: Employees stay longer when there’s a visible path forward. The best employers invest in mapping out those paths and offering stretch assignments and rotational roles to build future leaders.

Flexible working: Hybrid and remote options have become magnets for talent. Indonesian workers, like their global peers, value work-life balance and autonomy.

Cross-cultural fluency: With growing foreign investment, companies, especially those with ties to China, are focusing on cross-cultural training to foster better collaboration across teams.

Shining examples: Indonesia’s talent development trailblazers

Nestlé Indonesia

A staple on LinkedIn’s list of top Indonesian employers, Nestlé is renowned for its people-first approach. With initiatives like the Nestlé Management Trainee, NESTERNSHIP, YES! Internship, SETARA, and GEMILANG job training programmes, the company provides diverse learning experiences at home and abroad. By promoting inclusion and growth, Nestlé creates an environment where talent thrives.

MedcoEnergi Internasional

This energy giant takes a long-term view, investing in everything from fresh graduate sourcing to leadership succession. MedcoEnergi’s graduate development programme blends classroom learning, on-the-job experience, and coaching. Potential successors are identified early and developed through tailored plans to ensure continuity and depth in both technical and leadership roles.

Go-Jek, Tokopedia and Traveloka

These tech juggernauts are not just building apps; they’re building talent ecosystems. By investing in their teams and promoting tech capability, they’ve helped define the modern Indonesian workplace.

Other best-in-class employers

Amartha Mikro Fintek, Bank Jago, Blibli, and Coca-Cola Europacific Partners Indonesia are among several firms praised for strong HR practices, employee engagement, and talent development. These organisations understand that when people grow, business grows.

Six ways Indonesia is reshaping workforce development

1) Public–private partnerships

Collaborations with the likes of Panasonic and Cevest Bekasi are helping align training with current and future skills demand, particularly in sectors like electronics.

2) Vocational training scale-up

With thousands of new programmes focused on practical skills, Indonesia is trying to close the education–employment gap. Fields such as AI, data analytics, green energy, and medical tech are top priorities.

3) Skills-first workforce planning

Companies like LONGi and Arcadis are ditching rigid roles in favour of project-based learning, skills marketplaces, and agile teams. This shift allows internal talent to take on new challenges based on capabilities, not just job titles.

4) Workplace-integrated learning

The Indonesian Qualification Framework (IQF) is being used to embed learning into the flow of work. This includes mentoring, job rotations, and real-world assignments, with certification that adds value to employees’ CVs.

5) Digital talent development

The Ministry of Communication and Informatics is leading with programmes that span from basic digital literacy to specialisations in AI, cybersecurity, and big data. Scholarships and online learning pathways are building the digital backbone Indonesia needs.

6) Curriculum co-design with industry

By bringing educational institutions and employers to the same table, training stays relevant. This approach ensures graduates are equipped for immediate roles and long-term careers.

Why industry partnerships matter more than ever

Industry–education cooperation is now mission critical. Here’s how it plays out on the ground:

Bridging mismatches: TVET (Technical and Vocational Education and Training) institutions working with employers ensures students gain skills that are actually in demand.

Co-investing in upskilling: Electronics sector partnerships provide targeted training that boosts employability and helps Indonesia stay globally competitive.

Hands-on apprenticeships: Companies like Toyota Motor Manufacturing Indonesia run workplace-based learning that mirrors real factory environments, producing job-ready graduates.

Designing relevant curricula: Industry-led content keeps training aligned with technological trends and customer expectations.

Pooling resources: Shared infrastructure and expert trainers build stronger, more scalable vocational ecosystems.

Policy and incentives: The government, with help from international bodies like the ILO, is introducing tax breaks and establishing Sector Skills Councils to bring structure and scale to talent development.

The future of talent in Indonesia

Indonesia’s workforce development is entering a new chapter – one that prioritises agility, digital fluency, and inclusivity.

• Upskilling and reskilling will continue to top the agenda, particularly in health care, sustainability, and tech.
• Digital talent will be in hot demand as the country pushes towards leadership in AI, IoT, blockchain, and cloud computing. Multi-stakeholder collaboration will be crucial here.
• Infrastructure investment will aim to close regional divides, especially in places like Kalimantan and Eastern Indonesia, so that no part of the country is left behind.
• Competency certifications will gain traction, giving employees formal recognition of skills and opening up cross-border job opportunities.
• Employers will need to go beyond compensation, offering purpose, learning, and flexibility to win the war for talent.

In short, Indonesia is laying the right tracks for talent development – and those that stay on board, whether company or candidate, stand to benefit from the journey ahead.