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Skills for Competitiveness (S4C)

Indonesia has charted impressive economic growth since overcoming the Asian financial crisis of the late 1990s. It has become the largest economy in the ASEAN community with a GDP per capita of USD 3’603 in 2016. Today, Indonesia is a key player on the global stage as the world’s 4th most populous nation, the world’s 10th largest economy and a member of the G-20. Poverty has been halved since 1999 to 10.9% in 2016 (World Bank, 2017).

While this is good news in principle the poverty rate decline has slowed down since 2012: 28 million Indonesians still live below the poverty line today, while 40% of the total population are considered vulnerable of falling back into poverty with incomes only marginally above the poverty line.

One of the major challenges the country faces today is the structure and dynamics of its labour market. On the one hand, the 1.7 million youth who enter the workforce each year outpace the growth in the number of jobs and result in a demand supply mismatch and people ending up in informal employment. On the other hand, technological progress: the complexity and nature of skills required on the labour market are not adequately matched with the qualifications and experiences obtainable through the national skills development system and result in a skills mismatch.

The Project

The structure and dynamics of the Indonesian labour market poses one of the major challenges for the Indonesian economy and its future growth: the 1.7 million youth who enter the workforce each year outpace the growth in the number of jobs and the complexity of skills required are not adequately matched with the qualifications obtainable through the current Vocational Education and Training (VET) system. The Skills for Competitiveness (S4C) Programme aims to address this, is aligned to national strategies and based on clear demand from the Government of Indonesia.

The Programme has two objectives:

  • Five selected Polytechnics are efficiently managed and educate technicians/engineers in selected sectors as per the needs of the private sector. The Polys are focussing on the metal, furniture, wood and food processing sectors.
    Two outputs support this achievement focussing on the establishment of necessary management systems and processes and the development of training approaches oriented in the dual VET system. Interventions include among others the strengthening of school management capacities with focus on industrial relations, supporting the development of teaching ‘factories’ within the Polytechnics, development of a teaching approach on dual training and the upgrading and strengthening of teaching capacities.
  • The Government of Indonesia, selected sector associations and Association of Polytechnics and Industry Indonesia collaborate to develop and strengthen a tertiary dual Vocational Education and Training System in Indonesia.
    Activities aim at the establishment of a service portfolio for Poly-Industry services anchored with institutions like the Association of Polytechnics and Industry Indonesia (APII), sector associations or techno parks, supporting knowledge exchange and learning between VET system actors and contributing to overall VET system reforms.

The Programme is implemented by a Swiss Consortium consisting of the Swiss Foundation for Technical Cooperation (Swisscontact), the Bern University of Applied Sciences (BFH-CDC) and the Association for Swiss International Technical Connection (SITECO) working in close collaboration with the Centre for Industrial Education and Training (CIET) of the Ministry of Industry (MoI) and the Directorate for Higher Education (DIKTI) of the Ministry of Research, Technology and Higher Education (RISTEK).



  • 233 poly managers and lecturers, consisting of 145 males and 88 females, benefited from S4C activities;
  • 24 companies participated in the workshops about the DACUM-method for curricula development at three partner polys;
  • 15 participants (7 males, 8 females) completed the first of three stages of Facilitators Training of DACUM or industry-oriented curriculum development, which was co-organized by S4C (8) and STED (7);
  • 447 students (273 males, 174 females ) from 10 study programs benefited from S4C program in industry-oriented curricula, teacher’s training, poly-industry cooperation, accreditation etc.;
  • 8 DACUM workshops contributed to curricula revision toward industry-oriented curricula               
  • Knowledge Sharing Forum, attended by 12 national and international partner organizations, discussed Indonesian and Australian lessons learned and good practices on Competency Based Training.

Swiss Foundation for Technical Cooperation
Hardturmstrasse 123
CH-8005 Zurich

Tel. +41 44 454 17 17
Fax +41 44 454 17 97
E-Mail info@STOP-SPAM.swisscontact.org