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January 20, 2025 | 08:54 pm
TEMPO.CO, Jakarta - The Industry Ministry stated that Indonesian workforce productivity falls behind its Southeast Asian counterparts. This was stated by Wulan Aprilianti Permatasari, Head of the Industrial Vocational Education Development Center (PPPVI) at the Ministry’s Industrial Human Resources Development Agency (BPSDMI).
“Indonesian workforce productivity still ranks fifth in Southeast Asia, with each worker generating approximately US$26,328 in 2023,” Wulan said during a speech at the closing ceremony of the Industrial Human Resources Productivity Improvement Program in Jakarta on Monday, January 20, 2025.
Wulan highlighted that this income per Indonesian worker is far behind the productivity levels of Singapore, Brunei Darussalam, and Malaysia.
This finding aligns with data from the International Labor Organization (ILO), which measures the output of each worker within a specific period to determine productivity levels. The ILO reported that in 2023, each Indonesian worker contributed US$14 to the gross domestic product (GDP) per hour of work. In contrast, Singapore achieved US$74 per hour, Brunei Darussalam reached US$49, Malaysia recorded US$26, and Thailand generated US$15 per hour.
ASEAN Studies also indicated a low labor productivity level in Indonesia. This is evident in the GDP per worker figure, which stands at only US$23,870, falling below the ASEAN average of US$24,270 per worker.
In response to this productivity gap, Wulan said the government has taken a stance. "The government, through Presidential Regulation Number 1 of 2023, has established the National Productivity Institute (LPN),” Wulan explained. The establishment of the LPN aims to formulate effective policies that accelerate the enhancement of national productivity and competitiveness.
Wulan emphasized that the Industry Ministry operates 13 Vocational Higher Education institutions, 9 Vocational High Schools, and 7 Industrial Training Centers to support the development of industrial human resources.
One of them is through the Industrial Human Resource Productivity Improvement Program, a collaborative effort between BPSDMI, the Industry Ministry, the Ministry of Economy, the Trade and Industry of Japan, and the Japanese Association for Overseas Technical Cooperation and Sustainable Partnerships (AOTS).
Wulan highlighted that this program has been implemented since 2019, benefiting a total of 1,304 participants, including teachers, lecturers, and industry practitioners. The programs include productive teacher training in electronics and machinery, 5S/kaizen training for vocational high school teachers, the Indonesian Manufacturing Industry Human Resource Development (ENIV) infrastructure training program conducted both in Japan and online, and the lean manufacturing for making Indonesia 4.0 (LEMMI 4.0) training program.
“This is an effort by the Industry Ministry to help industry increase productivity,” concluded Wulan.
Vindry Florentin contributed to the writing of this article.
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