Education Sector

An Expert's View about Education in Indonesia

Posted on: 25 Aug 2012

Education is one of the key priorities for Indonesian Government which considers human capacity development as one of its key objective over the next 3 years.

Education Sector in Indonesia Education is one of the key priorities for Indonesian Government which considers human capacity development as one of its key objective over the next 3 years. Market overview Indonesia’s economic growth continues to be strong at 6.5% in 2011 and predicted to reach 6.1%-6.3%% in 2012, and is South East Asia’s largest economy. The current education system in Indonesia is adapted from a system introduced by the former Dutch colonial administration, which is designed around 12 years of education in primary school, middle school and high school. The education sector in Indonesia falls under the responsibility of the Ministry of National Education (Kementerian Pendidikan Nasional). Indonesia has traditionally been viewed as a difficult market for the UK. However, due to its large population, new political stability and rapidly expanding economy, Indonesia's potential is now being recognized more widely. With a growing affluent middle class (of around 30 million) with more money to spend on education and a programme of reform designed to raise educational standards, there are new and promising opportunities for UK institutions and UK education suppliers to establish a stronger presence in all areas of the market. Funding for public education comes from the central government - 20% of total government expenditure is ring-fenced for education. These funds are disbursed to local districts for spending. Key opportunities With a potential mismatch between the courses taught at the tertiary level and the skills required by the job market as well as the fast expansion of the business process, there is a necessity for training courses to train the workers to be ready for employment. There are also opportunities for UK providers to provide specialised courses particularly for continuous professional development. Various universities in Indonesia have established separate centres to teach professional development or advanced learning courses. It is common for these institutions to partner with overseas courses to offer non-local qualifications in Indonesia. High impact short term courses/ training with low logistical costs for professionals are available in the following sectors: ξ Finance ξ Banking ξ Oil & Gas ξ Manufacturing & Agriculture For the past few years, there is a growing trend to provide curriculum and courses on any subject using English as a delivery language and there are more schools offering English Language Training to compliment their methods of teaching. Therefore, there are opportunities for establishing English Training centres in the market. Also, more national and national plus schools are increasingly seeking educational materials from overseas. The demand is largely for textbooks and school equipment. In regards to higher education, the opportunities for UK universities are to partner in research mentoring and partnership with Indonesian Universities. Latest export opportunities – Education & Training Latest export opportunities - Indonesia Getting into the market Under the regulation no. 20/2003, foreign educational institutions or providers of training programmes must partner with a local company. Your partner will become your agent, and your agent will be running the business for you in Indonesia. To take advantage of the opportunities available, it is crucial that companies: ξ Appoint the right business partner (after undertaking due diligence work) ξ Visit the market on a regular basis (face-to-face contact and the development of relationships is critical to business success) ξ Prepare comprehensive information packs profiling your company, product/services, pricing and terms of payment ξ Participate in major educational exhibitions to showcase products/services to relevant partners More about doing business in Indonesia Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ Peggy Gaspersz, British Embassy Jakarta, Indonesia. Tel :+62 21 2356 5232, Fax : +62 21 2356 5352 or email : Contact your local international trade team Major Events BES Asia Forum, Kuala Lumpur, Malaysia, 1 – 2 October, 2012 UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events – Education & Training Latest events – Indonesia Useful links More about OMIS and other UKTI services for exporters
Posted: 25 August 2012

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