Indonesia Unveils New AI Skills Strategy to Prepare Young Workers for a Changing Job Market

August 29, 2026

Indonesia is preparing a new workforce strategy designed to help young people adapt as artificial intelligence rapidly changes the skills employers need.

The country’s Ministry of Manpower is developing a three-part approach known as “3S” — upskilling, reskilling and cross-skilling. The initiative is intended to help workers strengthen existing abilities, learn completely new capabilities and combine skills from different fields as technology transforms the labor market.

Government Sees AI as an Opportunity

Indonesia’s Deputy Minister of Manpower, Afriansyah Noor, said artificial intelligence should not be viewed only as a threat to employment.

Instead, he described the technology transition as an opportunity to improve productivity and strengthen the competitiveness of Indonesian workers.

The government’s position reflects a growing international debate about AI and employment. While automation may reduce demand for certain tasks, new technologies can also create demand for workers with different technical and human skills.

Indonesia wants its workforce to be prepared for both sides of that transformation.

What the 3S Strategy Means

The government’s three-part plan has different objectives for workers.

Upskilling focuses on improving abilities that employees already possess. A worker may, for example, learn to use AI-powered software to perform an existing job more efficiently.

Reskilling is aimed at people whose current occupations are significantly affected by technological change. It provides an opportunity to acquire skills needed for a different role or industry.

Cross-skilling combines capabilities from multiple areas. This can give workers greater flexibility by allowing them to move between related functions and adapt to changing workplace requirements.

Together, the three approaches are designed to make workers more adaptable rather than preparing them for only one fixed occupation.

Indonesia’s Demographic Advantage

The initiative is particularly important because Indonesia has a large working-age population.

More than 68 percent of the country’s population is of working age, according to the Ministry of Manpower. The government sees this demographic structure as a major economic opportunity.

However, a large workforce alone does not guarantee economic growth.

If graduates and workers do not possess the capabilities employers require, the demographic advantage could become a challenge.

The government therefore wants education and vocational training to keep pace with rapidly changing industry needs.

AI Skills Added to Vocational Training

Indonesia plans to update vocational education so that it covers areas increasingly important in an AI-driven economy.

The revised training approach is expected to include AI literacy, data analysis and automation.

At the same time, officials are emphasizing skills that machines cannot easily reproduce, including critical thinking, adaptability, leadership and professional ethics.

This combination is important because modern workplaces are increasingly expected to require both technological understanding and strong human judgment.

The goal is not simply to teach people how to operate AI tools but to help them understand how technology can be integrated responsibly into their work.

Training Centers to Receive Modern Technology

The Ministry of Manpower is also working to modernize vocational training facilities.

Technology-based equipment will be introduced or expanded at vocational training centers and community-based training facilities. The government also wants instructors to improve their own capabilities so that training remains relevant to industry requirements.

This is a critical part of the strategy.

Even well-designed training programs can become ineffective if instructors lack familiarity with the technologies being used by employers.

Indonesia therefore wants the training system itself to evolve alongside the labor market.

Stronger Links Between Training and Industry

Officials are also stressing the importance of connecting vocational education directly with business needs.

Training programs are expected to reflect the skills companies actually require rather than operating independently of the employment market.

Participants are also encouraged to obtain professional competency certification through Indonesia’s national certification system, based on national occupational standards.

Such certifications could help employers assess whether candidates have practical capabilities rather than relying only on academic qualifications.

AI Preparation Extends Beyond Technology

Indonesia’s AI workforce strategy is not limited to computer-related jobs.

The government recognizes that artificial intelligence will influence many industries, including sectors where workers may not consider themselves technology professionals.

For this reason, basic AI understanding could become increasingly useful across different occupations.

A worker in administration, finance, manufacturing, customer service or logistics, for example, may eventually need to understand how AI-assisted systems affect everyday tasks.

Government Workers Also Need to Adapt

The push for AI skills extends to Indonesia’s public sector.

The Ministry of Communication and Digital has separately emphasized the importance of preparing government employees for AI-related changes. Officials have called for stronger AI literacy, policy-analysis capabilities and data-based decision-making.

The government says officials should understand the technology well enough to develop informed policies rather than responding to AI developments without sufficient knowledge.

This indicates that Indonesia views workforce transformation as a nationwide issue rather than something limited to private companies.

Protecting Workers During the Transition

The government is also considering the changing nature of employment.

Flexible work arrangements, including freelance and other nontraditional forms of employment, are becoming more common. As the labor market evolves, officials say worker protection must evolve as well.

That creates an additional challenge for policymakers.

Preparing people for AI is not only about giving them technical skills. Governments must also consider how workers will be supported when occupations change and how employment protections can remain effective in a more flexible economy.

Making AI Training More Inclusive

Indonesia also wants AI-related training opportunities to reach groups that could otherwise be left behind.

The government has highlighted broader participation by women in science, technology, engineering and mathematics, disability-friendly training facilities and improved access for young people living in remote and less-developed regions.

This inclusive approach could become particularly important because unequal access to technology and training can widen existing economic gaps.

If AI-related opportunities are concentrated only in major cities, rural and disadvantaged communities could struggle to participate in the country’s digital transformation.

A Wider National AI Strategy

The workforce initiative is part of a broader Indonesian effort to strengthen the country’s position in artificial intelligence.

Indonesian officials have recently described a national AI strategy covering multiple layers of the ecosystem, including energy, infrastructure, chips, talent and applications. The government says it wants Indonesia to become more than a consumer of AI technology and instead develop a stronger role in the global AI economy.

Workforce development is therefore a central part of the country’s broader ambitions.

Without enough skilled workers, investment in infrastructure and AI technology would not automatically translate into stronger economic competitiveness.

Preparing for Jobs That Do Not Yet Exist

One of the most difficult aspects of AI workforce planning is predicting exactly which jobs will dominate in the future.

Technology can create entirely new occupations while changing existing ones.

Indonesia’s 3S approach attempts to address this uncertainty by emphasizing continuous learning rather than training workers for a single career path.

That could make adaptability one of the most valuable professional qualities in the coming years.

The Road Ahead

Indonesia’s government now faces the challenge of turning the strategy into practical training opportunities that reach millions of workers.

The success of the initiative will depend on the quality of vocational programs, cooperation with employers, access to modern equipment and the ability of training institutions to update their curriculum as AI technology develops.

The government also needs to ensure that workers in smaller cities and remote regions receive meaningful access to these opportunities.

If those challenges can be addressed, Indonesia’s large working-age population could become an important advantage in the global AI economy.

The country’s message to young workers is increasingly clear: AI is changing the workplace, but learning how to adapt may be more important than predicting exactly which jobs will disappear.

By combining technical knowledge with critical thinking, adaptability and other human capabilities, Indonesia hopes to build a workforce capable of working alongside increasingly powerful artificial intelligence rather than being left behind by it.