Antara News·Indonesia·Monday, October 12, 2026 at 10:54 AM UTC

Indonesia targets 18.7 percent factory productivity rise by 2029

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Ahmad Muzdaffar Fauzan, Yashinta Difa

Jakarta (ANTARA) - Indonesia's Industry Ministry targets an 18.7 percent increase in manufacturing labor productivity by 2029 as part of a broader push to raise national competitiveness.

The roadmap aims to raise manufacturing labor productivity from Rp124.35 million ($6,947) per worker in 2025 to Rp147.7 million ($8,251) by 2029.

Industry Minister Muhammad Sarmuji said the goal hinges on comprehensive human capital development.

"Developing national industry requires not only investment and technology but also a workforce that is competent, adaptable and aligned with industrial needs," Sarmuji said in a statement on Monday.

To reach the target, vocational education and training programs must be directly linked to industrial requirements.

The "link and match" approach and dual education systems are vital to ensure graduates have skills relevant to technological advances and workforce demands, he said.

Competency development must keep pace with rapid technological shifts, including digital technology, automation, data analytics and cybersecurity skills, Sarmuji said.

"With a more competent industrial workforce, labor productivity can continue to rise, ultimately strengthening the competitiveness of the national manufacturing industry," he said.

The ministry's Industrial Human Resource Development Agency (BPSDMI) runs vocational training at 13 vocational higher education institutes, nine vocational high schools (SMK) and seven industrial training centers (BDI).

Acting BPSDMI Head Adie Rochmanto Pandiangan said programs are designed around industry demand by strengthening curricula, instructor capabilities, infrastructure and industry partnerships.

Interest remains strong: higher education institutes received 61,744 applicants for 4,566 seats as of June 30, while vocational high schools drew 33,592 applicants for 2,749 seats.

Adie said high demand offers a strong foundation for nurturing industrial talent, though quality improvements remain necessary.

Under the agency's medium-term roadmap through 2029, it targets 89 percent of industrial human resources to be competent and an 88 percent employment rate for skilled vocational graduates.

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