Incentives for Vocational Education

The government is granting incentives to companies that provide vocational education. Companies that take this offer will receive multiple benefits.

KOMPAS/RIZA FATHONI

Students majoring in electronics engineering try props at SMKN 26, Rawamangun, Jakarta, Monday (18/7/2022). Vocational-based education with a larger portion of practice really requires the presence of students and the availability of laboratories.

The government has promised to give a tax discount to companies providing vocational education for their employees. This tax incentive aims to relieve the cost burden companies bear in improving their human resources (Kompas, 31/10/2022).

The tax incentive discourse has been going on for more than 10 years. Nearly all companies describe the capacity and quality development of human resources as a burden. We support the government plan, provided that the tax incentive reaches the right target and its results can be measured.

Also read:

> Youth, Vocation, and Rural Industrialization

> Vocational Education not in Line Industry Needs

The discourse about the importance of building human resources has been underway since the 1980s. We have often mentioned a comparison with our neighbor Singapore. The island country has no natural resources, but the per capita income of its citizens makes it a rich nation. Human resources constitute the key to its success, and the country treats education as a serious issue.

Education is seen as the means of that country’s survival. The essence of education is to make an investment in human resources. Reliable human capital will create strong social capital for the society and state to prosper and win its competition with other nations.

KOMPAS/AGUS SUSANTO

Job seekers queue to enter the job fair or Global Job Fair 2022 at the Cevest Vocational and Productivity Training Center (BBPVP) Bekasi, Bekasi City, West Java, Wednesday (7/9/2022.

Education will generate workers for the business sector, creators of employment and people who can add value in the value chain. Vocational education can help train these three types of workers by providing practical skills that can be directly used in places of work.

We need the three types of human capital to set the economy in motion and gain maximum advantage form the earth, water and land of Indonesia. Skilled workers in their fields of work are obviously needed by the business world. We also need the kind of human resources capable of finding opportunities and creating new employment.

In addition, we need workers capable of producing added value and value chains. They are needed for us to benefit from our abundant natural resources and minimizing their negative impact on the environment.

Also read:

> Vocational Education Quality

Although several countries have supported the business sector in realizing vocational education, we can be free from the lagging human resources quality by specially designing this incentive according to our comparative advantage and plus points.

The business world should profit from this tax incentive in the best possible way. It’s not for the mere purpose of obtaining the tax cut, let alone offering vocational education just to fulfill the requirement. The benefits of having quality human resources will eventually be manifested in corporate growth.

This article is translated by Aris Prawira.