Govt to provide vocational training for 50,000 laid-off workers

Indonesia has announced a significant initiative to renovate and rehabilitate 1,397 madrasas—Islamic religious schools—across the nation. This effort is part of a broader economic stimulus package aimed at enhancing infrastructure and education quality while addressing safety concerns raised by recent incidents. The project, backed by a budget of Rp4 trillion (approximately US$224.4 million), seeks to improve learning environments for students attending these institutions.

Under the Quick-Win program, the government has already completed renovations for 548 madrasas spread across 26 provinces, utilizing about Rp1.3 trillion of the allocated funds. These completed projects represent a substantial portion of the overall plan. Additionally, the initiative includes plans to renovate 836 more madrasas over the years 2025–2026, with current progress standing at 62 percent. The decision to launch this program follows the tragic collapse of a building at an Islamic boarding school in Sidoarjo, East Java, highlighting the urgency of ensuring safe and reliable educational facilities for students.

This renovation drive aligns with broader efforts to boost the economy and address employment challenges. As part of the economic stimulus measures introduced for the second half of 2026, the government has allocated a total of Rp26.34 trillion (around US$1.4 billion) for various initiatives. Among these, a notable component involves providing vocational training for 50,000 laid-off workers. The program also targets 220,000 participants, focusing primarily on high school and vocational school graduates who need additional skills to enter the job market.

Minister of Manpower Yassierli emphasized the importance of preparing the vocational training program thoroughly, ensuring it meets the needs of both participants and industries. The government is also expanding its National Internship Program (MagangHub) for a second batch in 2026, aiming to involve 150,000 participants throughout the year. The budget for this combined internship and vocational training initiative amounts to Rp6.26 trillion (about US$341 million).

Improvements have been made to the internship program, particularly in how participants are distributed and the specific fields they can engage in. For instance, the 2025 edition of the National Internship Program attracted 102,600 participants, with involvement from 8,048 companies and government agencies across Indonesia. Interns now receive a stipend equal to the minimum wage, along with social protections such as Work Accident Insurance (JKK) and Death Insurance (JKM). Mentorship from participating organizations is also included, and competency certification from the National Professional Certification Agency (BNSP) will become mandatory for the second batch starting in 2026.

The government’s economic stimulus package extends beyond just vocational training and internships. It includes incentives for the transportation sector worth approximately Rp2.04 trillion (US$109 million) and food assistance totaling Rp18.04 trillion (US$982 million). These measures aim to stimulate economic activity and ensure stability during challenging times. Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the role of these programs in boosting the national economy, emphasizing their potential impact on employment and consumer spending.

As the government moves forward with implementing these initiatives, further details regarding the schedule and logistics of the vocational training and internship programs are expected to be released soon. Officials have indicated that the second batch of the National Internship Program will likely commence in July 2026. With these comprehensive efforts, Indonesia aims to create a more resilient and adaptable workforce capable of meeting the evolving demands of the labor market.