The Day the Market and Businesses Start Investing in Better Education

Initial vocational education and training
Garniasih Garnijanto30.09.2026
The conversation between vocational institutions and employers has long been trapped in the same loop. Companies expect graduates who are prepared for the workplace, while schools strive to improve their programme. Institutions traditionally design curricula first, leaving industry review as a secondary step. By the time students graduate, workflows have evolved. In the case of Politeknik Elektronika Negeri Surabaya (PENS), they invest in flipping the process, asking first, “What does a Network Engineer do every day? What tools are used, and what responsibilities come with the role?”

In this manner, the industry stops being an advisor at the end of the process and becomes a co-designer from the outset. The new flow attracted PENS. They commissioned KADIN Institute, the training arm of the Indonesian Chamber of Commerce and Industry (KADIN) East Java for analysis and capacity building, to facilitate six industry practitioners in breaking down the job of a network engineer. It was the first time PENS and the industry had sat together for two days to discuss curriculum relevance in such a practical way.

"Our goal is to ensure that the curriculum we design is fully aligned with industry expectations. We seek input on the specific competencies and certifications required by employers, as well as the soft skills that students need to succeed in the workplace."
Professor Mochammad Zen Samsono Hadi, Vice Director for Academic Affairs of PENS

Behind his statement was a trust that developed when both sides started working together. A service that once needed support is now generating revenue for KADIN Institute, proving that budget is allocated when people believe a solution solves a real problem. In light of this progress, we sat with Dr. Nurul Indah Susanti, M.Si., Psikologi, the director of KADIN Institute East Java, to discuss the key drivers of the organisation.

What sparks the momentum?

Within KADIN Institute, PENS’ strategic move reflects a broader evolution for the organisation.  It has long focused on strengthening Indonesia's business community through training and data. Its missions are closely tied to improving competitiveness, helping enterprises grow, supporting MSMEs to move up the value chain, and contributing to Indonesia's economic ambitions. In addition, KADIN Institute’s collaboration with Swisscontact Indonesia through the Swiss Skills for Competitiveness (SS4C) programme has opened new commercial value opportunities by bringing businesses and education closer together.

Other than facilitating a curriculum based on industry needs, driving companies to equip their staff as more effective workplace mentors enables the industry to contribute to talent development. Initially, this service was introduced with programme support but is now beginning to demonstrate viability. KADIN Institute's In-Company Trainer (In-CT) training, for instance, has moved into paid delivery, with three paid training programmes conducted for 28 company clients. These numbers represent the industry’s willingness to invest time and budget to treat workforce development as a business need rather than a project activity. The less visible challenge, but equally important? Time. An hour spent participating in a training programme meant an hour not spent running the business. The decision for businesses to join highly depended on whether the value outweighs the immediate cost of time and attention. Thus, a hybrid learning approach was introduced. Combining face-to-face sessions with digital modules saved mentors’ time between meetings and business priorities without compromising the quality of learning.

To complete the line of solutions, the organisation is also supporting the implementation of structured internships with 9 other companies. They bring enterprises and educational institutions to agree in advance on what students learn, the tasks performed, who to guide, and how progress will be assessed. This approach enables businesses to secure top talent early and build a stronger human resource strategy.

"Structured internships make our recruitment process efficient by lowering advertising costs and recruitment time. We gain access to work-ready talent whose performance can be evaluated before recruitment."
Enge Christina, Director of General and Administration at PT. Satoria Aneka Industri

According to Dr. Nurul, business leaders think of productivity, operational efficiency, customer needs, and commercial realities. As she put it, “Explaining a new line of service is barely enough. A direct meeting and presentation may generate interest, but a success story generates belief.” KADIN Institute has learned that repeated discussions and concrete examples of visible outcomes are what move conversations forward. Businesses want evidence. They want to understand what benefits emerge, and why participation is worth the effort.

Recognizing this, KADIN Institute has focused heavily on outreach and relationship-building with both educational institutions and their private sector members. The organisation communicates through events, direct meetings, social media, printed materials, and local television. In addition, East Java's network of 38 KADIN district offices creates a powerful communication channel to businesses across the province. Information is disseminated through regional clusters across the north, east, west, and south, creating a chain of communication that extends beyond a single office.

How the partnership with Swisscontact Indonesia has shaped KADIN Institute’s journey

Reflecting on the collaboration, Dr. Nurul describes the partnership as, “Providing a strong positive contribution to the organisation.” Beyond introducing new approaches and service support, Swisscontact Indonesia helped strengthen KADIN Institute’s ability to demonstrate business viability when connecting the private sector with education. Two worlds that speak different languages, but are most of the time looking at the same issue from different angles.

In light of new behaviour emerging, schools are allocating funds to improve curriculum relevance, and companies are investing in trainer development and adopting structured workforce solutions. The market is starting to keep the idea alive: creating opportunities driven by demand, sustained by value, and owned by local actors who are designed to serve.

Swiss Skills for Competitiveness Initiative (SS4C) is a merger of the Skills for Competitiveness (S4C) and Sustainable Tourism Education Development (STED) projects, funded by the Swiss State Secretariat for Economic Affairs (SECO), and implemented by Swisscontact in Indonesia.

2024 - 2027
Indonesia
Initial vocational education and training, Reskilling and upskilling
Swiss Skills for Competitiveness (SS4C)
SS4C is to strengthen the incentives and capacities of public and private dual vocational education and training (dVET) providers at the micro- and meso-level so that the skills of graduates match the needs of industry, thereby improving small and medium enterprises’ (SMEs) productivity and contributing to more competitive SMEs in Indonesia competing on the global market.