This report comes at a time when policy makers are challenged by the COVID-19 crisis that is generating a profound reflection on economic and social well-being. Before COVID-19 hit, Indonesia had experienced remarkable economic growth, making substantial progress in poverty reduction and gains in employment. However, there are large differences in outcomes across Indonesian provinces, which often reflect the quality of local infrastructure, services, education, and jobs. This joint Asian Development Bank (ADB) and Organisation for Economic Co-operation and Development (OECD) study sheds light on challenges and opportunities to promote employment and skills outcomes at the local level in Indonesia. The analysis presented in this OECD/ADB report shows the importance of strengthening local institutions managing and delivering employment and skills policies.
With the rising economic importance of human resources and skills, employment and training agencies are now often expected to play a more important role in local strategies to support new job creation, facilitate restructuring and increase productivity. The OECD Local Economic and Employment Development (LEED) Programme has developed a series of Reviews on Local Job Creation to examine the contribution of local labour market policy to boosting quality employment and enhancing productivity.