Indonesia allocates Rp12 Trillion for skilling and job empowerment

Coordinating Minister for Human Development and Community Empowerment, Muhaimin Iskandar, revealed that the government has allocated Rp12 trillion (US$750 million) for scholarships aimed at training high school and vocational graduates in language and job skills relevant to global markets. 

The program, set to begin by the end of 2025, will focus on areas with high international demand such as welding, caregiving, and hospitality. “The goal is not just to send workers overseas but to prepare skilled professionals who can represent Indonesia’s quality workforce,” Iskandar said after a meeting with the President in Jakarta. 

He added that the scholarships will emphasize language proficiency, practical training, and internationally recognized certifications, ensuring that Indonesian workers can compete effectively on the global stage. 

 The program will run alongside another initiative coordinated by the Ministry of Migrant Workers Protection, which aims to prepare 500,000 skilled migrant workers, supported by a separate allocation of Rp8 trillion (US$500 million). 

“These programs are part of a larger strategy to align Indonesia’s labor force with global job market needs,” Iskandar said, noting that the number of scholarship recipients will increase significantly in early 2026. 

In a related announcement, Iskandar also outlined a community empowerment and poverty eradication program targeting families classified as extremely poor. The initiative includes four months of vocational training in fields like security services, agriculture, and cleaning work, after which participants will be directly employed by job providers. 

Complementing the training, the government will allocate millions of hectares of land recovered through agrarian reform programs to poor families, primarily in the agricultural sector. “We will promote ownership of production assets among farmers by distributing land to decile 1 communities,” Iskandar said, adding that about 49 percent of Indonesia’s extreme poor work in agriculture. 

According to Statistics Indonesia (BPS), around 2.38 million people currently live in extreme poverty. The government aims to reduce this number to zero by 2026, leveraging the National Socioeconomic Single Data (DTSEN) to ensure precise targeting and effective implementation.

Iskandar described the new initiatives as part of a “paradigm shift” in President Prabowo’s approach to development, one that focuses on empowerment, inclusion, and long-term sustainability rather than short-term assistance. “These efforts reflect a deep commitment to creating a self-reliant, globally competitive, and prosperous Indonesia,” he said.