REGIONAL GROWTH

CENTRES: WHAT
WORKS BEST?
 SYNCHRONIZING THE JOB MARKET:
THE ANALYSIS OF THE VOCATIONAL SCHOOLS
ROLE AMIDST DEVELOPING LABOUR MARKET
IN INDONESIA

THE SMERU RESEARCH INSTITUTE

Prepared by Goldy F. Dharmawan
I N D O N E S I A D E V E L O P M E N T F O R U M 2 0 1 8

J A K A R T A , J U L Y 1 1 , 2 0 1 8
 2006 2010 Chen (2009):
Similar wage
and
LET'S GO BACK
The MoEC planned
to increase the
SMK : SMA employment
number of SMK 50 : 50 outcomes
IN TIME

(small range of
in 2006
samples)
SMK : SMA
26: 74 2015
Newhouse &
SMK : SMA Suryadarma
(2011):
70 : 30 Difference of
wage premium
by gender and
We started this research at the end of 2017 after

2017
type of school
seeing the urgency to find the best practice in
and peer effect
increasing the skills of workers in the industry.
matter

T H E S M E R U R E S E A R C H I N S T I T U T E
 Despite the debate, the MoEC still continued the expansion of SMK to meet
70:30 SMK to SMA ratio. This means:
FOR EACH SMA IN ONE AREA,
THE EXPANSIONS
CONTINUES THERE MUST BE AT LEAST TWO SMKs IN THE AREA.

NO DATA

T H E S M E R U R E S E A R C H I N S T I T U T E
 SMK graduates are more
likely to get a job. SMK
SMK GRADUATES ARE

Moreover, for those who

MORE LIKELY TO

already have jobs,

GET A JOB ...

SMK graduates are

less likely to be
underemployed SMA

T H E S M E R U R E S E A R C H I N S T I T U T E
 HOWEVER,
...BUT THEY EARN

SMA GRADUATES
SMK graduates have similar (and statistically slightly lower) wage level compared to SMA
graduates conditional to having a job, despite SMK is designated to educate the students
LESS THAN

better practical skills to increase their productivity

in the industry.

T H E S M E R U R E S E A R C H I N S T I T U T E
 KALIMANTAN
NOW LET US SEE FROM THE
MALUKU
SULAWESI

REGIONAL LEVEL

SUMATERA

PAPUA
JAWA / BALI NUSA TENGGARA

Probability of The map above shows the advantage of SMK graduates

to SMA graduates in the job market using Sakernas
Getting a Job
2016.

Probability of Being
We obtain the result by using our statistical model for
Underemployed each region using Sakernas 2016.

T H E S M E R U R E S E A R C H I N S T I T U T E
 KALIMANTAN
NOW LET US SEE FROM THE
MALUKU
SULAWESI

REGIONAL LEVEL

SUMATERA

PAPUA
JAWA / BALI NUSA TENGGARA

We also calculate how much SMK graduates earn

How much their compared to SMA graduates at the regional level
conditional to getting a job. Although we found that
"real monthly wage" SMK graduates earn less at the national level, the
regional level results vary.

T H E S M E R U R E S E A R C H I N S T I T U T E
 We find an interesting evidence which suggests that spending
IN ADDITION, WE ALSO
3 years to attain SMA/SMK
is less correlated to increase the wage level compared to
FIND SOMETHING

having "job-related" training certificate.

INSIGHTFUL

Moreover, we found that its effect is almost equal to

1-year of working experience
Relatively LOWER

SMA/SMK
Graduation ONLY BETTER WAGE
Certificate

SMA/SMK Job-Related
Relatively HIGHER
Graduation Training
Certificate Certificate

Job-Related
Training ONLY
Certificate notes: a more thorough research is on progress.
T H E S M E R U R E S E A R C H I N S T I T U T E
To innovate the education policy, one
should consider who will enter and
what end they will meet.
In our SMK case, we found that we need to redesign the vocational system.
Identifying each region needs and what outcome it provides are also essential.

ONE, we suggest that the MoEC remap the needs of SMK in every region
(as well as increasing their quality).
TWO, any intention to improve the informal course and job training is encouraged

Let's build the nation with a solid will and power to change

T H E S M E R U R E S E A R C H I N S T I T U T E