Economic growth and poverty reduction go hand in hand with a capable, skilled workforce and business-friendly development. On behalf of the American people, the United States Government through the U.S. Agency for International Development (USAID) partners with the Government of Indonesia, educational institutions, Indonesian and American businesses, and local communities to foster economic growth, advance Indonesia’s vision for self-reliance, and help rebuild Indonesian economy after COVID-19 pandemic. Through a deeply collaborative relationship with government, private sector partners, and more, we bring resources, solutions, and sustainability to joint efforts that prioritize self-reliance and mutual prosperity and security. 

USAID supports Indonesia’s vision to strengthen training and vocational education; increase higher education partnerships; and leverage the skills, technologies and resources of the private sector to ensure sustainable and effective development. In doing so, USAID increases access to high-quality skills and vocational training to ensure that more young people are prepared to get jobs and contribute to the economy. We also provide expert assistance and support to Indonesia’s leading government scholarship program for promising scholars-- the future leaders of Indonesia.

• In 2019, USAID improved training curricula at 172 colleges and training institutions—for example, supplementary coursework in entrepreneurship for secondary students—improved entrepreneurship training/opportunities for youth and trained over 28,000 youth in soft and hard skills pertinent to the world of work.
   
• In 2019, USAID partnerships with 26 private sector entities leveraged over $870 million to enhance the sustainability, effectiveness and scale of development outcomes across our portfolio in Indonesia.
   
• USAID supported 30 Indonesian and 12 American universities to partner on collaborative research, resulting in over 500 peer-reviewed publications on priority development issues and 250 international conference presentations by Indonesian scholars. 

CURRENT PROGRAMS

WORKFORCE DEVELOPMENT 

With access to training on skills in demand by the private sector, more young Indonesians will be able to reach their full potential as self-reliant, productive members of society. USAID partners with the Government of Indonesia and private sector entities to equip more Indonesian youth, women, minorities, and people with disabilities with the skills and resources needed to compete in Indonesia’s job market and make meaningful contributions to the economy. USAID partners with vocational schools, local governments, and higher education institutions to improve employment pathways, enhance teacher training, and develop partnerships between schools and businesses. Further, we provide high-quality training on skills such as financial literacy, digital literacy, and entrepreneurship and help more youth access information about training, internships, and job opportunities.

ECONOMIC GROWTH 

Broad-based economic growth across all sectors is essential to sustainable and inclusive long-term development as it creates opportunities to reduce poverty, improve access to assist services at both central and local levels, and progress Indonesia further on its journey to self-reliance. To these ends, USAID partners with Indonesia’s government at the national and subnational level to improve public financial management and create a more conducive business enabling environment, which in turn increases inclusive economic growth.

COVID-19

As a result of COVID-19, many Indonesians are looking to build their skills and increase their employability while at home. To help, USAID is adjusting its workforce development projects to offer online learning resources and training (including business coaching and mentoring services) to ensure that its target beneficiaries have the skills they need to increase their opportunities in gaining or maintaining employment or starting their own businesses. 

Finally, in partnership with the U.S. International Development Finance Corporation, USAID is finalizing a loan credit guarantee to a regional fintech firm that will provide invoice-based loans to healthcare providers and essential goods supply chain businesses in Indonesia.