About us

Activity overview

Designed to address information asymmetry between Australian TVET providers and Indonesian industry, the Indonesia-Australia TVET Skills Exchange is an online platform that allows business matching between the two.

Katalis will design and operate a TVET Skills Exchange and design a sustainability strategy so that the platform continues beyond the life of Katalis. With an innovative and proactive approach, the Skills Exchange will have a built-in data analytics dashboard to provide up-to-date market insights, conduct marketing activities, and identify large commercial skills partnerships.

Start date: April 2022
End date: March 2024

Location

Online platform, linked to the Katalis website and related social media networks.

Commercial opportunity

The Indonesian Government as well as industry have expressed frustration around skills shortages and labour
productivity. Consequentially, high-quality skills development activities for employees are prioritised by Indonesian industry to address skill gaps. Australia is well-positioned to provide support to Indonesia to address skills gaps due to Australia’s highly regarded vocational system and deep connections with industry.

Through IA-CEPA, Australian technical vocational education and training (TVET) providers are permitted to  deliver course content in Indonesia and/or establish a presence in-country. They can deliver both accredited and non-accredited course content in a range of sectors such as tourism, health, IT, business, and agriculture. The Skills Exchange will leverage the IA-CEPA agreement to pursue commercial benefits for both countries.

How Katalis is helping

ndonesia’s workforce is heavily focused on labour-intensive tasks. More than 60% of the population do not go on to study beyond their senior high school or senior vocational high school certificate and a significant percentage of the workforce do not have a formal qualification. At the same time, Indonesia’s government-driven vocational education system struggles to provide the skills needed to align the workforce with the skills needs of industry.

Over the years, Australian vocational providers have partnered with or delivered projects for Indonesian
stakeholders, both for delivery on and offshore. However, these interactions have tended to be small scale and limited to one-off transactions. There are very few examples of consistent, long-term, sustainable Indonesia-Australia TVET training at scale.

By addressing information asymmetry and reducing search costs that have to date hampered high value collaboration, the Indonesia-Australia TVET Skills Exchange paves the way for bigger commercial outcomes through more strategic international engagement for Australian TVET providers.

Expected outcomes

The Skills Exchange is targeted to facilitate, at a minimum, eight large commercial partnerships between
Indonesian industry and Australian providers and reach financial sustainability in the first two years of its operation. Through the Clearinghouse mechanism, Indonesian businesses will be able to articulate their skills needs and Australian providers will be able to respond and showcase their capabilities. A closer relationship between Indonesian industry with the Australian education sector will be forged through the Clearinghouse, resulting in thousands of Indonesian workers upskilled and reskilled through collaborative training activities.

Benefits for Indonesia and Australia

Human capital development is one of the five priorities of the Government of Indonesia in achieving economic growth, eradicating poverty, and improving welfare. The COVID-19 pandemic has disrupted the economy and the labour market and makes skills development more important to increase preparedness in meeting industry needs and accelerate economic recovery.

At the same time, the Australian government has a vision to increase international engagement with the
Australian TVET sector, as evidenced in its Australian International Education 2025 Roadmap. The international education sector, heavily impacted by the COVID-19 pandemic, will benefit from the Skills Exchange as it will be an entry point to increase engagement with the Indonesian market and strengthen international skills activities. This opportunity becomes strategic to strengthen Indonesia-Australia bilateral partnerships in capacity building,
while reaping benefits from IA-CEPA.

Gender Equality, Disability, and Social Inclusion (GEDSI)

The Katalis TVET Skills Exchange will initially focus on priority sectors where women, people with disabilities and people from minority groups are well represented (e.g., health, tourism, and digital services) and include GEDSI goals and targets. The training conducted through the partnerships will also encourage participations from GEDSI groups.