Ministry Of Manpower Introduces Job Market Information System
Introduction
The landscape of vocational education and training in Indonesia has been further shaped by the issuance of Ministry of Manpower Regulation No. 5 of 2024 on the Job Market Information System (”MoM Reg 5/2024”) that entered into force on 29 February 2024. This regulatory advancement seeks to implement specific provisions of Presidential Regulation No. 68 of 2022 on the Revitalization of Vocational Education and Training (“PR 68/2022”). PR 68/2022 established foundational guidelines aimed at enhancing the structure and effectiveness of vocational education and training across Indonesia TO PREPARE a more responsive educational framework to meet the evolving demands of the labor market.
MoM Reg 5/2024 introduces the Job Market Information System (Sistem Informasi Pasar Kerja/”SIPK”), a systematic and continuously updated information system framework designed to collect, analyze, and disseminate comprehensive labor market data. This includes details about the supply and demand of labor, both domestically and internationally, and other dynamics that affect the balance of the job market. The introduction of SIPK represents a strategic effort by the Ministry of Manpower to provide a robust informational backbone that supports job seekers, employers, and policymakers by offering real-time data essential for informed decision-making in workforce development and employment planning.[1]
This regulation was officially enacted on 29 February 2024 and is aimed to harness the power of data for the government to increase efficiency and better align the workforce with the industrial and corporate sectors’ needs, ultimately building a more competitive and productive economic environment.
Purpose of SIPK
MoM Reg 5/2024 designs the SIPK as an essential tool in the strategic framework of Indonesia’s labor market. The primary purposes of the SIPK are multifaceted and aimed at empowering various stakeholders in the labor market through access to critical, comprehensive, and up-to-date information. Here are the core purposes established under this regulation:[2]
- Availability of Competent Labor Data. SIPK is designed to provide data on the availability of competent, productive, and competitive human resources. This data is a vital resource for businesses, industries, and the broader employment sector to ensure that the labor supply meets current and future needs.
- Basis for Workforce Planning. The system serves as a foundational tool for planning labor needs. By analyzing trends and projections in the job market, SIPK aids in forecasting and strategizing the future workforce requirements, thereby assisting in educational and vocational training planning.
- Market Analysis Tool. Through the SIPK, stakeholders can access detailed analyses of the job market. This includes insights into labor supply and demand, skills gaps, and other critical market dynamics. Such analyses are essential for policy formulation and adapting training programs to meet market demands.
- Intelligence for Job Market Equilibrium. SIPK provides job market intelligence that helps understand and potentially mitigate the barriers to achieving a balanced job market. This function is crucial in identifying and addressing issues such as unemployment, underemployment, and skills mismatches.
Overview of New Provision
MoM Reg 5/2024 introduces a suite of provisions designed to enhance the operational effectiveness and strategic utilization of the SIPK. The SIPK will be integrated with theMinistry’s already established digital platform that collects and disseminates information on labor market dynamics. This platform serves as a central repository for data related to employment, workforce characteristics, and job market trends, which are critical for effective labor market governance and policy-making.
To provide accurate information, MoM Reg 5/2024 regulates the systematic collection of a wide range of labor market data. This includes information on workforce demographics, employment rates, job vacancies, skill requirements, and other relevant labor market indicators. This data is sourced from various stakeholders, including government bodies, private sector entities, and educational institutions. The collected data should be updated regularly to maintain the relevance and accuracy of the SIPK.[3]
Types of Information Available Through SIPK
MoM Reg 5/2024 extensively outlines the types of labor market data the SIPK collects and disseminates. These data types are crucial for understanding various aspects of the job market. They are classified into several categories, each addressing different facets of labor dynamics in Indonesia.
1. Manpower Structure Information
The SIPK provides comprehensive information on the labor force structure, distinguishing between the workforce and non-workforce populations. This classification understand the active participants in the labor market and those currently outside it, such as students or homemakers. Types of data displayed within the Manpower Structure Information include:[4]
- manpower conditions (Workforce population/Non-workforce population);
- participation within the professional sector;
- workforce population indicators;
- non-workforce population indicators;
- education and literacy level indicators;
- manpower wages and fees indicators;
- manpower productivity;
- indicators of poverty;
- underprivileged working residents and distribution of incomes; and
- other relevant indicators.
2. Manpower Characteristics Information
The SIPK details various characteristics of the manpower that may help in profiling the labor force to tailor workforce development programs and policies effectively, which among others include:[5]
- gender;
- age;
- skills and competencies;
- marital status;
- disability conditions;
- educational attainment; and
- geographic distribution.
3. Manpower Availability Information
This segment of the SIPK focuses on the available labor market resources, providing data on:[6] (i) number of individuals available for employment; (ii) skills and competencies available within the workforce; and (iii) positions available, including types of job positions that the current workforce can fill. This information is vital for matching job seekers with appropriate employment opportunities, aligning workforce training with market demands, and planning for future labor needs.
4. Information on Domestic and Foreign Manpower Requirements
SIPK also processes data for Job Vacancies and Manpower Needs, inter alia:[7] (i) job vacancies, including information on current openings in various sectors within the domestic and international markets; and (ii) manpower needs, which details the specific requirements of employers, including the number of workers needed, the skills required, and the duration for which the positions will be open.
This aspect of the SIPK is essential for understanding the demand side of the labor market, assisting in strategic planning for human resource development, and ensuring that the supply of labor meets the qualitative and quantitative demands of employers.
Together, these four categories of information provided by the SIPK form a comprehensive database that supports effective labor market analysis, policy-making, and workforce planning, aligning Indonesia’s manpower resources with the evolving needs of the economy.
Eligible Users of SIPK
MoM Reg 5/2024 specifies a wide array of stakeholders who can access and utilize the SIPK, which includes:[8]
- job seekers (to find information about available job vacancies and the skills required for these positions);
- employers (to access and use data regarding the available workforce, helping them to match job vacancies with suitable candidates);
- educational institutions and training providers (to align their curricula and training programs with current market demands and future labor market trends);
- government agencies and policymakers (to gather data necessary for planning and implementing employment policies);
- researchers (for detailed labor market analysis, which aids in scholarly and applied research); and
- public employment services and career advisors (to provide guidance based on comprehensive labor market data).
Modes of Access
The SIPK provides two primary modes of access to accommodate the needs of its various users: online via the existing Manpower Information System (Sistem Informasi Ketenagakerjaan/”SIK”) and offline through the one-stop service facilities (Pelayanan Terpadu Satu Pintu/”PTSP”) at the Ministry of Manpower and local government units.
The SIK is an existing digital platform that offers real-time access to labor market information, allowing users to retrieve data remotely and efficiently. The SIK is designed to be user-friendly and is accessible from any location with internet connectivity.
Meanwhile, for users who may not have reliable internet access or prefer in-person services, the SIPK data can be accessed offline at various PTSP facilities operated by the Ministry of Manpower and local government units. The PTSP should provide personalized assistance to assist users in navigating the information and services the SIPK offers. [9]
Data and Information Security Management
Under MoM 5/2024, SIPK data and information security measures must be implemented maintain confidentiality, integrity, and the availability of information assets, adhering to the International Organization for Standardization/International Electrotechnical Commission (ISO/IEC) Standard 27001 on Information Security, Cybersecurity and Privacy Protection — Information Security Management Systems — Requirements (ISO/IEC 27001). This standard, including provisions for securing personal data, dictates that all SIPK data and information security practices should comply with applicable laws and regulations.
Furthermore, the MoM 5/2024 also stipulates adherence to national standards for data security provided under the current legal framework which includes measures to protect personal and confidential information against unauthorized access and cyber threats to ensure that all data handled within the SIPK is managed responsibly, maintaining confidentiality, integrity, and availability at all times.
Conclusion
The introduction of MoM Reg 5/2024 and the establishment of the SIPK represent notable milestones in the evolution of Indonesia’s labor market and manpower planning strategies. This regulation may play a pivotal role in utilizing data to achieve improved workforce alignment with industrial and corporate sectors, potentially contributing to national competitiveness and productivity.
The potential impact of MoM Reg 5/2024 on the Indonesian job market could be significant, offering a structured and analytical approach to understanding and responding to labor market dynamics. MoM Reg 5/2024 may also be used to address the persistent issue of skill mismatch in the Indonesian workforce. The SIPK could significantly aid in aligning educational outputs and vocational training programs with actual market needs, thereby reducing gaps between the skills workers possess and those demanded by employers through its provision of real-time data on employment trends and skill requirements.
However, the full effects of this regulation will become more apparent as its implementation progresses.
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[1] Art 1 Para (1) MoM Reg 5/2024
[2] Art 2 MoM Reg 5/2024
[3] Art 3 – Art 10 MoM Reg 5/2024
[4] Art 4 MoM Reg 5/2024
[5] Art 5 MoM Reg 5/2024
[6] Art 6 MoM Reg 5/2024
[7] Art 7 MoM Reg 5/2024
[8] Art 15 MoM Reg 5/2024
[9] Art 16 MoM Reg 5/2024