Many Claims of Success, Should the “Kartu Prakerja” Continue?
By: Malvin Heraldo NapitupuluIndonesia’s Kartu Prakerja (Pre-Employment Card) is claimed as a political masterpiece, an example of successful policy innovation that transforms public services through digital technology As the largest Government to Person (G2P) program, the program has successfully benefited 17 million Indonesian workforce in all cities and districts since its first establishment in 2020 The Coordinating Ministry of Economic Affairs, as the executor of the program, says Kartu Prakerja provides services for skilling Indonesians with 90% of participants being upskilled Simultaneously, the program is also claimed to be successful in helping people in the pandemic crisis era as well, through a direct cash transfer scheme. With all this pride, does this mean that the Kartu Prakerja must be continued by the next government?
If we revisit the goal of the program, Kartu Prakerja cannot easily be claimed as a successful policy. To give a perspective on it, let's look back at the initial story. Kartu Prakerja was Joko Widodo's mainstay campaign promise when running for the 2019 presidential election. You could even say that it was the only thing that stood out at that time, providing differentiation for the incumbent, from other programs that had existed in his first period. In his campaign, Widodo claimed that Kartu Prakerja could decrease the gap in workforce quality through skill development. The government would transfer cash to job seekers not in formal education or those who need competencies training. With the upskilling, it was said that the unemployment rate could be lower. Therefore, the program was promised as a solution for anticipating unemployment due to bonus demographics, so all assessments must be oriented to this goal.
Due to the COVID-19 spread, Kartu Prakerja was adjusted from only a skilling program but also a social protection program through direct cash transfer So, the program was refocused to support people's purchasing ability in the crisis phase It means that in that phase, the program wasn’t aimed to help people to access the labor market, as designed However, because it was a crisis, it’s understandable After the situation got back to normal, Kartu Prakerja was reactivated as a workforce skill and productivity development program in 2023 and is planned to be continued at least until Widodo’s second term ends in October 2024.
Well, so far, what are the actual results of this expensive program? From the training schemes, most of which are online, this program is mistargeted and aimed at people who don't really need it. This program also has not effectively reached people who have difficulty accessing technology. The large disparity in digital facilities between urban and suburban areas makes the Kartu Prakerja program not considered inclusive.
Furthermore, online training is also ineffective in improving skills, instead, it becomes an opportunity for participants to chase monthly incentives. The critiques promoted by opposing politicians seem right, Kartu Prakerja makes the state pay the unemployed There is a disconnection between the policy and what people need here. For accessing the labor market, skills and abilities should have been more dominant to experiential and practical skills with visible proof. For example, for informal skills like haircutting, tailoring, and mechanical repairing, participants need direct training and won’t be ready for employment if they only watch videos. There should be an effectiveness assessment mechanism to evaluate the success of each training course.
In addition, an impact analysis of the Kartu Prakerja shows that the program has no significant impact on the open unemployment rate. It means the program has been disoriented from the first promised design. The idea of improving workforce skills is correct but given the fast-changing world and demographic challenges, the skill development must be in line with industry needs, qualitatively and quantitatively. You can't just get training from what existing online platforms offer; it won't change anything. There must be a prospective map of the skills needed by the industry.
Yes, we can recognize that this program as having some positive results from a perspective, like increased competency, productivity, and competitiveness of the workforce However, with the fact of mismatch between the industry’s needs and skills development provided, added to the stagnancy of job creation, the readiness of the Indonesian workforce to face the free market cannot be achieved through this, if we return to the initial idea
There are also claims that Kartu Prakerja increased people's income However, research shows that there is no significant difference in income for youth who use the card Supporting the explanation, research in Colombia and Dominican Republic also revealed that there was no substantial effect of job training on increasing income. Moreover, people's participation in the labor market is still in the low-wage sectors. The government needs to increase the possibility of becoming workers in formal sector employment, by offering more placement assistance to industries and other formal sector jobs.
In the grand scheme of policies, Kartu Prakerja was meant to be a savior, promising to bridge the gap between skills and jobs. But, as we reflect on its performance, it seems like it strayed from its original purpose. This must be evaluated so that the output of this program can improve the country's economy through productivity and competitiveness. Indonesia needs practical strategies that truly empower its workforce. Finally, let this be a lesson: policies must be appropriate to real conditions, not just stand out in political campaigns.
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