Project description

Title: Indonesian-German Institute (IGI)
Commissioned by: Bundesministerium für Wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
Country: Indonesia
Lead executing agency: National Planning Board and Ministry of Education
Overall term: May 2001 to December 2010

Context

The Indonesian economy is recovering from the Asian Crisis (1997 – 1998) more slowly than other countries in the region. Low productivity compared to its neighbours is leading to decreasing competitiveness. One of the reasons is the lack of a qualified workforce. The Indonesian vocational training system cannot at present keep up with the demand for employees familiar with modern technologies. By making modern technologies available, and thus facilitating the development of corresponding skills, the project contributes to better performance by vocational training institutions in selected sectors and enables them to keep abreast of technological developments in the modern job market.

Objective

The performance of Indonesian small and medium enterprises in selected sectors is significantly better due to the availability of competent, trained employees with a professional knowledge of modern technologies. The efficiency of public and private vocational training institutes joining forces in the Alliance for Training, Consultancy and Production of the Indonesian-German Institute (known as the IGI Alliance) has improved.

Approach

The project advises the Indonesian Ministry of Education, Labour and Industry in building a network of private and public institutes offering modern and innovative vocational training programmes. The network is being formed in the context of current moves to develop and reorganise the management of vocational training, and makes use of centres known as Business Units. Based on a business plan, these Business Units offer their products (production, training and consultancy) backed up by IGI Alliance resources. This process is supported by a joint information and communication platform.

The Alliance network responds to the demands of the labour market by supplying quality services such as training and consultancy. These services focus on the metalworking and wood-processing sectors, the processing of agricultural products and automation technologies, including office automation.

As a result of the improved equipment and competencies of the IGI institutes, graduates are better qualified for the job market.

Results achieved so far

• Research shows that take-up of graduates from the IGI institutes in the labour market is relatively high (73 percent) compared to other vocational training institutes in Indonesia (22 percent).
• Regional governments are showing an increasing interest in linking their local vocational training institutions with IGI institutes. The IGI Alliance has been commissioned to establish a Polytechnic University in the province of Riau.
• A platform for e-learning and a web-based database has been established and is ready for use.
• The proportion of female participants has increased significantly to 20 percent as a result of new training modules in the areas of design (construction, wood, mechatronics and textiles) and administration.
• The IGI institutes have established a range of cooperation ventures. In collaboration with the Malaysian-German Institute, a number of teacher training courses were conducted and teaching aids for mechatronics developed. The IGI institutes cooperate with private sector enterprises in the production and marketing of bio-pesticides and aloe vera extracts. Partnerships have been established with the private and public sectors in the furniture industry and for an accounting software application.
• So far, four partner institutes have been certified according to ISO 9001:2000, and further partner institutes are in the preparatory phase for certification.

Further information

• Alliance for Training Consultancy and Production
  Indonesian-German Institute
  www.igi-alliance.com
• Indonesian-German Regional Economic Development Program
  www.red.or.id