Defining ASEAN's Workforce: Why a Future-Ready Workforce is Vital for Indonesia

7 hours ago 4

By: Datuk Seri Vijay Eswaran, Founder and Executive Chairman of the QI Group of Companies.

The reality is stark: less than half of ASEAN’s youth are being taught digital skills in school today.

This isn't just a gap but a looming crisis.

In a region navigating geopolitical headwinds, automation, and AI disruption, our capacity to build digitally competent workforces will define whether we thrive or fall behind.

And Indonesia, with its massive workforce and digital economy, has an opportunity to lead.

ASEAN’s vulnerabilities became clear when the U.S. imposed tariffs of up to 49% on Southeast Asian exports, revealing overreliance on traditional manufacturing.

The 2025 ASEAN Summit in Kuala Lumpur was a turning point, culminating in the Kuala Lumpur Declaration on ASEAN 2025, sharing a vision anchored in inclusivity, digital transformation, and sustainable growth.

That vision includes ASEAN’s ambition to become the world’s 4th largest economy by 2045, which will depend heavily on having a workforce ready for digital and advanced industries.

However, that vision must be built on something more than declarations.

It must be built on its people.

Indonesia’s Demographic Moment

Between 2020-2030, Indonesia is experiencing the peak in its productive-age population. Whether this becomes a true demographic dividend or a missed opportunity depends on how well we equip our people, not just with jobs, but with purpose-driven skills aligned with emerging industries.

The World Economic Forum predicts that 85 million jobs will be displaced by AI, while 97 million new roles will emerge. But these roles will not be filled by chance, instead through capability, creativity, and adaptability.

In Malaysia, over 600,000 workers need reskilling in the coming years. In Indonesia, the number soars: 9 million digital-ready workers are needed by 2030 to unlock the country’s full economic potential.

A Region of Contrasts and Opportunity

ASEAN is not a monolith. Singapore is accelerating AI integration, while many others are still early in their digital transformation. Meanwhile Indonesia lies in the middle with its digital ambitions while struggling with persistent inequality in access to training, especially across rural areas.

Yet, this diversity is also our strength.

Like biodiversity sustains a forest, ASEAN can turn fragmented efforts into collective progress through regionally aligned, interoperable workforce development programs.

Indonesia’s scale positions it as the keystone in building this interconnected skills ecosystem.

A PwC study estimates that wide-scale upskilling could boost ASEAN’s GDP by 4%, adding up to US$250 billion and 676,000 new jobs by 2030.

But this requires moving beyond joint efforts between governments, industry, and education providers.

Indonesia: From Momentum to Leadership

Indonesia has shown what’s possible.

The Kartu Prakerja program has delivered over 6,000 online training modules to nearly 19 million people. In 2023 alone, Singapore’s SkillsFuture supported 520,000 learners, 200,000 of whom were mid-career professionals.

These flagship programs show that transformation is achievable, just as both leaders of Singapore and Indonesia meet at its retreat.

Yet we must now ask the harder question: are these programs equipping people with the right skills for the right jobs?

Many Indonesian workers remain mismatched, caught in unstable roles, unable to pivot careers, and unsupported by fragmented education systems. Informal workers, migrants, and those in sectors like agriculture, MSMEs, and manufacturing, where digitalisation is accelerating, often remain unreached.

Instead of training for today’s tasks, we must equip our citizens for tomorrow’s challenges by developing adaptable thinkers who can pivot across careers and industries. Right-skilling is less about ticking a skills checklist, and more about future-proofing mindsets.

A call to action for a future-ready ASEAN

The future will not wait, and neither should ASEAN. To lead in this next chapter, up-skilling and right-skilling are no longer mere responses to change; they are catalysts for innovation and inclusive growth.

ASEAN must commit to a concrete shared Digital Skills 2030 agenda with clear, measurable goals: universal youth digital literacy, advanced digital training for at least 50% workers, and harmonized cross-border certification frameworks to facilitate mobility and recognition.

Indonesia, with its economic scale and digital infrastructure, is uniquely positioned to drive this agenda forward. The Ministry of Manpower’s Triple Skilling strategy: skilling, upskilling, and reskilling, is a strong foundation.

But success will require closer coordination with regional frameworks, like ASEAN Year of Skills (AYOS) 2025, ASEAN’S DEFA and ASEAN Guide on AI Governance Ethics, deeper engagement with industry, a long-term commitment to human capital investment, and technology-enabled delivery models that reach every corner of the country.

Public-private collaboration will be key. Indonesia’s own digital platforms can scale learning at unprecedented speed and cost-efficiency. But we must ensure they reach the last mile, including rural workers, women, and informal entrepreneurs, where ASEAN’s inclusive future will be forged.

A Future Worth Building: Investing in what truly matters

The most valuable infrastructure in Southeast Asia isn’t physical. It is human.

Workforce transformation is often treated reactively, triggered only when skill gaps threaten productivity. But, the future will demand more versatile polymaths who combine technical know-how with soft skills like creativity, communication, critical thinking, and collaboration.

The future will not wait. Technology is moving fast. But human potential can move faster if we equip it. Right-skilling is no longer optional. It is the foundation upon which ASEAN’s prosperity, purpose, and identity will be built.

Indonesia has the momentum, the mandate, and the means to lead.

*) DISCLAIMER

Articles published in the “Your Views & Stories” section of en.tempo.co website are personal opinions written by third parties, and cannot be related or attributed to en.tempo.co’s official stance.

Read Entire Article
Bogor View | Pro Banten | | |