Please briefly describe the initiative, what issue or challenge it aims to address and specify its objectives (300 words maximum)
The objective of Kartu Prakerja is to close the skill gap and equip the labor force with skills necessary for future work. Indonesia will reach the top of demographic bonus in 2030. Therefore, having a more productive population is the key toward sustainable economic growth. Statistics showed that 90% of Indonesian adults have never attended training. Around 25% of youth are not in education, employment and training. Unemployment rate reaches 5,28% in 2019 with most are young, educated, and living in urban areas. Every year 2.5 million high school students enter the labor market. In ASEAN, Indonesia labor productivity ranks 5th (USD 25K/person/year) in 2019. Even though workers and employers understand the benefit of training, both spend too little since training is not a priority for them. To tackle the problems, Kartu Prakerja provides a subsidy and digital platform that enables everybody to easily select, compare and buy training. The Indonesian Government already has vocational training programs but with limited capacity for 870K participants per year. It is far from adequate to close the gaps of productivity required to achieve higher economic growth sustainably. It is necessary to have a new program that can accelerate skill upgrading.
Please explain how the initiative is linked to the selected category (100 words maximum)
To tackle the impact of COVID-19, Kartu Prakerja was adapted into a semi social assistance program without leaving the objectives of improving competencies of the Indonesian labor force. With a whole package of training and incentives, Kartu Prakerja provides social cushion and opportunities for beneficiaries to find a new job, a better job, or open a new business. At the macro level, Kartu Prakerja stimulates aggregate demands by pouring money to households, while basically improving aggregate supply through skill development. Kartu Prakerja also brings innovations through end-to-end digital approach, on-demand application, partnership with private sectors, and collaboration with fintech companies.
a. Please specify which SDGs and target(s) the initiative supports and describe concretely how the initiative has contributed to their implementation (200 words maximum)
Kartu Prakerja contributes to reach Sustainable Development Goals (SDGs) from several perspective:
SDG 4 (4.3, 4.4, 4.5)
Kartu Prakerja benefits both men and women equally with balanced proportions. Women constitute 49% of total Kartu Prakerja beneficiaries.
Kartu Prakerja covers various groups of citizens including elderly (60%), people with disabilities (1.5%), people living in remote areas (3.9%), former migrant workers (2%) and low level of education (20%).
There is 30% of unemployed beneficiaries get a job and 30% beneficiaries become entrepreneur after completing the Prakerja training
Prakerja promotes entrepreneurship by providing post training incentive that can support capital needed to start a business
Prakerja equips participants with relevant training for entrepreneurs such product research, market research, licensing, sales, digital marketing, branding, packaging, standards, bookkeeping and fundraising.
Prakerja has provided 26% (2,9 million people) of the participants who never had an account before have either a bank account or e-wallet account.
b. Please describe what makes the initiative sustainable in social, economic and environmental terms (100 words maximum)
In order to sustain the initiative, Kartu Prakerja has built a collaborative ecosystem by partnering with various government institutions and private sectors. The ecosystem can continue to exist in the long term without Kartu Prakerja to promote and to provide the skills upgrading for the citizens of Indonesia within specific requirements. With a system that is implemented in an end-to-end digital manner, Kartu Prakerja reduces human mobility, saves costs, time, and energy, and helps reduce risks of the COVID-19 spread.
a. Please explain how the initiative has addressed a significant shortfall in governance, public administration or public service within the context of a given country or region. (200 words maximum)
Kartu Prakerja is aimed for the productive age group (above 18 years old) to serve the skilling, reskilling and upskilling needed for the job market. COVID-19 has certainly changed the situation of how the program implementation is being done. Kartu Prakerja provides the opportunity for lifelong learning for everyone through the possibility of accessing the training anywhere and anytime using the digital approach that adapts the COVID-19 protocol. Within the changing nature due to COVID-19, Kartu Prakerja has enabled the program participants to take courses without any formal registration to a formal education entity. Kartu Prakerja scheme is large in scale, provides various market-relevant-trainings, and allows beneficiaries to choose training that suit their needs. In addition, conventional assistance distribution has obstacles such as limited area coverage, requiring large resources to deliver bank accounts. To deal with COVID-19, various distribution methods are needed to quickly adapt to community needs and minimize the spread of the COVID-19. Kartu Prakerja provides a variety of incentive distribution channels. By utilizing digital technology, Kartu Prakerja can provide large-scale and fast services.
b. Please describe how your initiative addresses gender inequality in the country context. (100 words maximum)
Kartu Prakerja works for everyone with citizenship of Indonesia. It shows that Kartu Prakerja opens the opportunity for any group including women and men to participate in the program to support their skills improvement. The randomisation of the program shows the selection of the participants is fair and addresses all groups. In fact, 49% women and 51% men are involved up to November 2021. Training completion rate for both men and women reaches almost 100% which indicates that the availability of online training eases the learning process for both genders
c. Please describe who the target group(s) were, and explain how the initiative improved outcomes for these target groups. (200 words maximum)
Kartu Prakerja Program is accessible to all Indonesian citizens over 18 years old and not currently enrolled in any formal education. Workers, entrepreneurs, job seekers, laid off workers, or high school graduates may enroll in Kartu Prakerja Program. In ensuring an equitable distribution, beneficiaries of other social assistance programs are not eligible for this program. Without privileging certain groups, Kartu Prakerja Program has proven to be inclusive and provides the same positive experience, reaching out to people with disabilities (3.6%), former migrant workers (2.6%), elderly (2%) poorly educated (13%), and people from disadvantaged regions (2.8%).
a. Please describe how the initiative was implemented including key developments and steps, monitoring and evaluation activities, and the chronology. (300 words)
Many steps have been taken to establish Kartu Prakerja such as focused-group discussion with various stakeholders and experts, learning from anecdotal evidence, developing organizational structure, platform-based website creation, building the training ecosystem by collaborating with private companies, and developing the public communication channel.
First step conducted in the monitoring and evaluation process is to determine indicators based on program objectives and regulation. Kartu Prakerja monitors their data in real time by utilizing digital systems as all the information is stored in their cloud technology. Business process, training, ecosystem players (Digital Platforms, Training Service Providers, and Payment Partners), beneficiaries are all monitored to ensure the training quality and delivery process in Kartu Prakerja. Training acquisition and monitoring involves various leading universities in Indonesia as independent expert assessor. Furthermore, program evaluations are conducted to program beneficiaries and partners through evaluation surveys and more rigorous impact evaluations carried out with external researchers from leading universities and research institutes.
Applicants and beneficiaries experienced several processes of the Kartu Prakerja Program. First, applicants must register through the website and their personal data will be verified before taking part in the selection process. A virtual account will be opened to hold a training assistance of 1 million rupiah (69.6 USD) after the beneficiaries are determined. By entering Kartu Prakerja’s number, beneficiaries can select and pay for training on the digital platform. They must complete the training to earn a certificate, give a rating and review for the training, get first incentive through a linked incentive channel account, and can fill out 3 Evaluation Surveys.
b. Please clearly explain the obstacles encountered and how they were overcome. (100 words)
There are some challenges faced by Kartu Prakerja, namely 1) resources, especially including reliable IT system procurement, 2) conducting more comprehensive regulation and training service providers acquisitions, 3) maintaining operations, including program operations and partnerships with private parties, 4) and improving quality of participant compliance.
These challenges were overcome by i) procurement of qualified experts, ii) strengthening collaboration between stakeholders from ministries and institutions, universities, and the private sector, and iii) utilizing technology.
a. Please explain in what ways the initiative is innovative in the context of your country or region. (100 words maximum)
Several innovations developed by Kartu Prakerja include:
-providing a broad range of choices in trainings, training service providers, digital platform, and payment partners to channel incentives
-adopting top-down approach and on-demand application
-eliminating bureaucratic red tape and corruption with direct application on the website
-exercising online and massive evaluation through Evaluation Survey
-adopting a startup culture in which promotes empathy with the users’ needs (customer-centric)
-using integrated hotline, live chat, and web form with a real time monitoring dashboard. Complaints and service level of the agents in each channel can be monitored and quickly responded
b. Please describe, if relevant, how the initiative drew inspiration from successful initiatives in other regions, countries and localities. (100 words maximum)
In 2020, the Corruption Eradication Commission stated that Kartu Prakerja is a best practice and an example for other programs in terms of governance. This achievement can be an inspiration for other public service programs in utilizing digital technology as it allows Kartu Prakerja to deliver the public services on a large scale, quickly, and cover all regions of Indonesia. The number of applicants on Kartu Prakerja’s website has reached almost 80 million showing a high public enthusiasm. Kartu Prakerja can reach various groups in society because of its program relevance and a massive outreach.
c. If emerging and frontier technologies were used, please state how those were integrated into the initiative and/or how the initiative embraced digital government. (100 words maximum)
Kartu Prakerja dashboard has an integrated and user-friendly digital service system. The service system supports the first digital training ecosystem in Indonesia built by Kartu Prakerja. Kartu Prakerja ecosystem provides open and access training information so that beneficiaries can choose the training according to their needs. Kartu Prakerja also supports a transparent and fast incentive transfer process. In addition, to match with the labor market, Kartu Prakerja has provided job vacancy information through integration with job platforms.
a. Has the initiative been transferred and/or adapted to other contexts (e.g. other cities, countries or regions) to your organization’s knowledge? If yes, please explain where and how. (200 words maximum)
Yes, it probably has been adopted by the Ministry of Health and Ministry of Education and Culture. They try to adopt similar institutional designs like Kartu Prakerja and digital solutions. Kartu Prakerja’s method to use the single identity number (NIK) as an instrument to filter applicants’ eligibility or to identify overlaps in different social assistance programs are followed by other institutions. Partnership with fintech inspires the Ministry of Social Affairs to complement services previously undertaken by state banks. The mechanism on how Kartu Prakerja disburses the incentives and manages different training also influences the Ministry of Finance and the BPJS Ketenagakerjaan to design the unemployment insurance scheme. Kartu Prakerja Program Management does not spend money on fixed assets or capital since they use co-working space as their office. To build a collaborative and high-achieving environment, Kartu Prakerja employs professionals from different areas including startups, based on performance contracts. With the success of Kartu Prakerja, others can learn on how the program is designed to adapt to changing situations. The design of Program Kartu Prakerja has shown the effectiveness, efficiency and coverage within a short period to cover 11 million participants to this date.
b. If not yet transferred/adapted to other contexts, please describe the potential for transferability. (200 words maximum)
It probably has been adopted by the Ministry of Health and Ministry of Education and Culture.
a. What specific resources (i.e. financial, human or others) were used to implement the initiative? (100 words maximum)
To digitize Program Kartu Prakerja, the resources must be adequate to support the implementation. It comes from adequate funding, clear regulations, IT infrastructures, expert human resources such as in IT, lawyers, economists, accountants, communication consultants, lecturers, training specialists, finance officers, administrators, procurement officers and general affairs, also cooperation with private sectors for development of a digital training ecosystem and universities to monitor training quality and evaluate substance of the trainings. The program implementer needs to build an easy learning ecosystem in very short of time to respond to the policy mandate.
b. Please explain what makes the initiative sustainable over time, in financial and institutional terms. (100 words maximum)
Program Kartu Prakerja supports the supply side of the labour market. In fact, the program is designed to provide various skills training adapting the critical occupation list to respond to the demand side needs. Employers can benefit from skilled labor to increase their productivity in the market to boost the Indonesian economy. Meanwhile, the established ecosystem of learning can provide benefits for the interaction of government and private sectors, including financial technology, digital institutions, and training providers, to collaborate on the goal of the policy.
a. Was the initiative formally evaluated either internally or externally?
b. Please describe how it was evaluated and by whom? (100 words maximum)
Kartu Prakerja has continuously evaluated the process and impact of the program. Internal evaluation is conducted by analyzing information about training, beneficiaries, and partners in real-time as the information is stored in Prakerja’s server. The external evaluation is done by independent and reputable organizations and universities. PMO Kartu Prakerja sends three online surveys to all beneficiaries after completing the training and receiving incentives. Since 2020, there are approximately 9.9 million beneficiaries who have responded to the Evaluation Survey. Additionally, Prakerja also collects ratings and reviews for each training completed by beneficiaries. We also send online questionnaires to our partners twice a year.
c. Please describe the indicators and tools used (100 words maximum)
Kartu Prakerja makes efforts to investigate the impact on beneficiaries through Evaluation Surveys and impact evaluation partnership. Evaluation survey analysis was conducted by comparing conditions of beneficiaries before and after receiving the program. There are several indicators to measure program benefits which are employment status after attending the training and use of incentives to maintain welfare. For example, changes in employment status from previously unemployed to employed indicates that the program is effective in enhancing skills and opportunities of getting a job. Furthermore, research collaborations were conducted with external researchers who applied more rigorous research methods
d. What were the main findings of the evaluation (e.g. adequacy of resources mobilized for the initiative, quality of implementation and challenges faced, main outcomes, sustainability of the initiative, impacts) and how this information is being used to inform the initiative’s implementation. (200 words maximum)
Based on PRESISI evaluation report for APEC Economics Policy Report, most Kartu Prakerja Beneficiaries (88.9 percent) feel that the program develops their competency, productivity and competitiveness. Most agreed that the program improves their knowledge, soft skills, work efficiency, and provide them with new skills. Most also asserted that they would enclose certificates they obtained from this program in their job applications (90 percent). At the time of the survey, 35 percent of participants who were unemployed when they enrolled in the Program have a new job. Secondly, this program spurs entrepreneurship as the number of entrepreneurs increased 47 percent compared to February 2020, before the program was implemented. Beneficiaries reported that the program provided knowledge and skills, particularly on starting and growing businesses, marketing products, obtaining technical production skills, and financial management. Additionally, 70 percent of beneficiaries used their incentives for working capital.
Please describe how the initiative is inscribed in the relevant institutional landscape (for example, how it was situated with respect to relevant government agencies, and how the institutional relationships with those have been operating). (200 words maximum)
Kartu Prakerja operates based on the Presidential Regulation Number 76 of 2020 and Coordinating Ministerial Regulation Number 11 of 2020, under the Coordinating Ministry for Economic Affairs. The hierarchical structure of Kartu Prakerja includes Job Creation Committee (Komite Cipta Kerja) as policymaker, Implementing Team, Committee Secretariat, and Kartu Prakerja Program Management Office that operates the program. Kartu Prakerja also cooperates with relevant ministries/agencies in verifying applicants' data. Courses available in Kartu Prakerja Program complement other vocational training programs implemented by other ministries/agencies.
Kartu Prakerja has built the first digital training ecosystem in Indonesia. There are 180 Training Institutions offering 1,562 occupancy-based trainings on 7 Digital Platforms. In addition, 5 Payment Partners (banks and digital wallets) also joined forces to help distribute incentives quickly and transparently. Kartu Prakerja also cooperates with job platforms and provides job vacancy information for Kartu Prakerja Beneficiaries. It is aimed to match demand and supply of labor. Also, Kartu Prakerja is supported by strong institution which enables the ecosystem to experience a significant and sustainable growth.
The 2030 Agenda for Sustainable Development puts emphasis on collaboration, engagement, partnerships, and inclusion. Please describe which stakeholders were engaged in designing, implementing and evaluating the initiative and how this engagement took place. (200 words maximum)
The initiative started with more than 100 FGDs with relevant subject matter experts from fields of information and technology, finance, logistics, policy, vocational education, communication and so on. Then, through Komite Cipta Kerja membering of 12 ministries, the planning to establish the Kartu Prakerja initiative into action stipulated in presidential regulation in 2020 (no. 36 jo 76) and detailed by the Coordinating Minister for Economic Affairs (no. 11/2020) and Minister of Finance (no 25/2020). As mentioned earlier, with the applied learning ecosystem, Kartu Prakerja implemented the program through the collaboration with government agencies, fintechs, bank, digital institution, training providers, job portals, and academic institutions to perform the business to maximise the benefit to the participants.
Please describe the key lessons learned, and how your organization plans to improve the initiative. (200 words maximum)
Kartu Prakerja has ability to adapt the dynamic situation of recent context with COVID-19 as well as to benefit the Kartu Prakerja beneficiaries and accelerate the economy after the pandemic. Kartu Prakerja program will continue to improve to be a better public service in increasing the competence, productivity, and competitiveness of Indonesia labor force. This is to ensure that Kartu Prakerja becomes relevant and appreciated. Program Kartu Prakerja can continuously improve to drive Indonesians toward digital transformation, eliminating space, time and cost constraints in seeking knowledge, building skills and improving competencies.