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Published Jun 15, 2026Updated Jun 181
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Indonesia's Labour Minister Emphasises Need for Competent, Adaptive Workforce Amid Digital Transformation
Indonesia's Deputy Minister of Manpower Afriansyah Noor stated that industries now prioritise practical competencies and adaptability over academic degrees, as digital transformation and AI reshape employment requirements. The government is relaunching the National Internship Programme (MagangHub) with a 4.14 trillion rupiah budget to strengthen graduate competencies and bridge the skills gap between education and industry demands.
Quick Facts
- Statement on changing labour market requirements
- Emphasis on competency-based hiring over degree requirements
- Launch of National Internship Programme (MagangHub)
- Call for collaboration between education, government, and industry
- Afriansyah Noor
Indonesia's Deputy Minister of Manpower Afriansyah Noor has stressed that industries increasingly require workers with genuine competencies and adaptability in response to rapid digital transformation and artificial intelligence development. Speaking on 15 June 2026, Noor highlighted that a university degree alone is no longer sufficient for entering the workforce, as employers now prioritise practical skills and proven competencies over academic qualifications. "The industry no longer asks what degree you hold, but rather what competencies you possess," Noor explained, underscoring the shift towards skills-based hiring.
To address this skills gap and bridge the mismatch between graduate qualifications and industry demands, the Indonesian government is relaunching the National Internship Programme (MagangHub), targeting recent diploma and bachelor graduates. The initiative is backed by a budget of 4.14 trillion rupiah and aims to strengthen competencies while accelerating the transition of tertiary education graduates into employment. Participants will receive benefits including allowances, social security protection, mentoring from professional mentors, and opportunities to pursue nationally recognised competency certifications.
Noor emphasised that competency certification serves as a critical tool to enhance the competitiveness of Indonesian workers in an increasingly intense global competition. He noted that while the national employment situation shows improving trends—with the open unemployment rate recorded at 4.68 percent as of February 2026—ongoing challenges from technological disruption, automation, and emerging skill requirements demand strengthened training and vocational ecosystems aligned with industry needs.
Addressing the broader workforce development strategy, Noor called for stronger collaboration between higher education institutions, Job Training Centers (BLK), and the industrial sector. He stressed that campuses, government, and industry must work together to prepare human resources that meet current and future labour market demands, recognising that successful workforce development requires coordinated action across all stakeholders.
Why This Matters
This policy shift signals a fundamental realignment in how emerging economies value and develop human capital. Readers—especially students, job seekers, and education administrators—should understand that academic credentials alone no longer guarantee employment; instead, employers now prioritize demonstrable, market-aligned skills. The government's 4.14 trillion rupiah investment in structured internships and competency certification creates tangible pathways for graduates to close the skills-to-job gap, making workforce development a critical factor for both individual career success and Indonesia's competitive position in a rapidly digitalizing region.