Questions/Answers

One aspect of social protection is investment in human resources. According to the 2019 National Labor Survey (Sakernas), most of the unemployed population in Indonesia are young (56%), high school graduates and above (66%), and live in urban areas (66%). On the other hand, Indonesia adds 2.5 million people on average to its workforce every year. Labor productivity is low due to skill gap – the gap between workers’ competence and market needs. BPS data shows that 90% of Indonesian workforce has never taken certified training. Despite that, increasing skills through training is not a priority for both workers and employers (World Bank, 2018). Facing these challenges and a demographic bonus that is projected to end in 2030, a large-scale program is needed to boost the productivity of Indonesia’s workforce. Indonesian government has demonstrated a commitment to improve skills of its workforce through the implementation of large-scale and rapid training programs (11 million beneficiaries in 2 years). Kartu Prakerja increases the workforce's exposure to certified training. Kartu Prakerja is designed to develop competence of the workforce, increase productivity and encourage competitiveness of the workforce, as well as develop entrepreneurship through skill improvement (skilling, reskilling, and upskilling). At the same time, challenges of COVID-19 pandemic that emerged in early 2020 required Kartu Prakerja to adapt its program scheme into a conditional cash transfer. Kartu Prakerja (Pre-Employment Card) is part of the National Economic Recovery Program (PEN) during the COVID-19 pandemic that provides a social safety net for those who have not received social assistance. In particular, Kartu Prakerja plays a role in mitigating impacts of the COVID-19 pandemic for those who have lost their jobs and/or experienced a drop in income. In 20 months, the total number of beneficiaries has reached 11.4 million people spreading across all provinces in Indonesia.

The COVID-19 pandemic increased the poverty to 1.63 million people compared to September 2019 and affected around 1.76 million workers by May 2020 (Statistics Indonesia and Ministry of Labor, 2020). Meanwhile, BAPPENAS predicts that unemployment in 2020 will reach 3.7 million people. To anticipate this, Kartu Prakerja Program adapted the program design and became part of the National Economic Recovery Programs. The adaptation was carried out by increasing post-training incentives and reducing training assistance and targeting the workforce affected by COVID-19 through online training and incentive provision.

Kartu Prakerja contributes to achieving SDGs 1.3, 4.3, 4.4, 4.5, 8.3, 8.6, 8.10, 10.1, 10.2, and 10.4. SDGs 4, 8.6, 10.2 - By providing training scholarships and a training ecosystem that provides quality and occupation-based training (Critical Occupation List (2019) and Indonesia’s Occupational Task and Skills (2020)), Kartu Prakerja Program promotes increased competence, competitiveness and productivity of the Indonesian workforce. - Provision of online trainings can reach all levels of society in all districts/cities in Indonesia. - Proportion of male and female Kartu Prakerja beneficiaries in 2020 and 2021 is balanced, namely 51% and 49%. This shows that Kartu Prakerja Program has succeeded in providing equal opportunity for men and women to participate in the program using a randomization method. SDG 8.3 - Acquired skills can be used to get a better job, be more productive at current job, or to build a business. In addition, Kartu Prakerja incentive has also been used for business capital. SDG 8.10 - Distribution of Kartu Prakerja incentives through G2P 3.0 scheme which provides multiple channels, promotes financial inclusion. SDGs 1.3, 10.1, and 10.4 - Kartu Prakerja incentive is a social cushion for people who have difficulty meeting their daily needs due to the COVID-19 pandemic.

- Kartu Prakerja Program assistance includes: 1) training assistance that can be used to improve competence, productivity, and competitiveness so that the beneficiaries can improve skills to get better jobs, 2) post-training incentives that can be used as a business capital or meet daily needs. - In addition, Kartu Prakerja creates a sustainable training market ecosystem by collaborating with the private sector, namely Digital Platforms, Training Service Providers, and Payment Partners. - 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.

Kartu Prakerja has several innovations and steps that can address problems efficiently and effectively, including: 1. Problem: Training assistance schemes of other programs are small in scale, have limited training options, are predefined, and do not match market needs. Solution: Kartu Prakerja scheme is large in scale, provides various market-relevant-trainings, and allows beneficiaries to choose training that suit their needs. 2. Problem: Conventional assistance distribution has obstacles such as limited area coverage, requiring large resources to deliver bank accounts. Solution: 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. 3. Problem: Public services are still conventional with manual processes and limited coverage. Solution: By utilizing digital technology, Kartu Prakerja can provide large-scale and fast services. 4. Problem: Previously, government programs had a predetermined list of beneficiaries and assisted the registration process. Solution: Kartu Prakerja program is open, where anyone requiring a skill improvement can register themselves independently. 5. Problem: Overlap in government assistance programs. Solution: Kartu Prakerja uses data from various Ministries and Agencies so that the beneficiaries of Kartu Prakerja do not overlap with other government assistance programs.

Proportion of male and female Kartu Prakerja beneficiaries in 2020 and 2021 is balanced, namely 51% (5,889,263) and 49% (5,552,659). The process of determining program beneficiaries is done through randomization. This shows that Kartu Prakerja Program has succeeded in providing equal opportunities for men and women. Training completion rate for both men and women is almost 100% which indicates that the availability of online training eases the learning process for both genders. With the high rate of training completion by women, women's employment status increased from 43% to 49% (or grew by 12%).

Kartu Prakerja Program is available 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%).

The development of Kartu Prakerja Program has gone through several steps such as; literature review, group discussions with various stakeholders, learning from past experiences of program formation, making and revising regulations, establishing organizational structure, creating a platform-based website, building a training ecosystem and public communication channels. The first stage of monitoring and evaluation process is to determine indicators in accordance with the program objectives based-on regulations. Business processes are described according to regulations and monitored in real-time by utilizing technology. Subjects of monitoring include business processes, digital training ecosystem (digital platforms, training institutions, and payment partners), and training. Training monitoring is carried out to ensure quality of substance and delivery process of the training in two stages; before (through a curation process by various leading universities in Indonesia as independent expert assessor) and after entering Kartu Prakerja ecosystem. Subjects of program evaluation are program beneficiaries and partners. Impact on beneficiaries of Kartu Prakerja Program was traced through 3 online Evaluation Surveys which has been answered by 89% of 2020-2021 beneficiaries. More rigorous impact evaluations are carried out with external researchers from leading universities and research institutes. The business process that Kartu Prakerja applicants and beneficiaries go through are as follows. First, applicants must register through the website and their information will be verified before taking part in the selection process. After the beneficiaries are determined, a virtual account will be opened to hold a training assistance of IDR 1 million (USD 69.6). Beneficiaries can select and pay for training on the digital platform by entering their Kartu Prakerja number. The beneficiaries must complete the training to earn a certificate, give a rating and review for the training quality, get first incentive through a linked incentive channel account, and can fill out 3 Evaluation Surveys.

Four categories of challenges faced by Kartu Prakerja, namely 1) resources, including team recruitment and reliable IT system procurement, 2) operations, including program operations, system integration, partnerships with private parties, and contract management, 3) easy learning ecosystem development, including regulation comprehension and training service providers acquisitions, 4) public and compliance, including public perception, communication, and auditing. These challenges were addressed by making several breakthroughs, namely: 1) procurement of qualified experts, 2) instilling an agile working culture, 3) strengthening collaboration between stakeholders from ministries and agencies, universities, and private sectors, and 4) utilizing technology.

Kartu Prakerja is an innovative program in terms of design and implementation. As the first semi-social assistance program in Indonesia, Kartu Prakerja combines skills training with conditional cash transfers. Several innovations strengthen the program include 1) optimizing technology that is efficient, large in coverage, capable of processing data in real-time, and reliable, 2) end-to-end digital approach from registration to incentives disbursement, 3) providing training through partnerships, 4) becoming a pioneer of G2P Payment involving digital wallets, 5) providing freedom in choosing occupational-based-training courses and incentive disbursement accounts, 6) implementation of a customer-first mindset, and 7) reliable various contact centers.

Kartu Prakerja is considered to be a best practice and an example for other programs in terms of governance (Corruption Eradication Commission, 2020). This achievement can serve as an inspiration for other public service programs in taking advantage of digital technology. Digital technology allows Kartu Prakerja to serve the public quickly, on a large scale and cover all regions of Indonesia. Public enthusiasm is high judging by the number of applicants on Kartu Prakerja website, which has reached almost 80 million. The relevance of the program and a massive outreach allow Kartu Prakerja to reach various groups in society.

Kartu Prakerja 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 information disclosure so that beneficiaries can choose the right training according to their needs. Technology and systems used also support a transparent and fast incentive transfer process. Kartu Prakerja also has the potential to continuously grow. One that has been implemented is a provision of job vacancy information through integration with job portals.

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Kartu Prakerja has succeeded in initiating an end-to-end digital approach that is able to serve the public in large numbers, quickly, transparently, without intermediaries and reduce the risks of COVID-19 spread. Digital services are also supported by a customer-centric approach by providing responsive contact centers. Digital training ecosystem can be developed because online training market has been established but has not been integrated and active before Kartu Prakerja was launched. With the ecosystem, the government is able to form partnerships with private sectors to provide trainings. A start-up working culture is adopted in program implementation so that the program is always relevant and accepted by the public. Kartu Prakerja always adapts and believes in the importance of continuous improvement to achieve program goals. Digital service systems, contact centers, ecosystem development and working culture of Kartu Prakerja have the potential to be adopted by other ministries/agencies in the country and in other countries.

Developing the Kartu Prakerja ecosystem required the following resources: 1) funding for program operations, 2) clear regulations, 3) IT infrastructure, 4) expert human resources in IT, public communication, stakeholders relations, monitoring and evaluation of programs, vocational training or andragogy education, project management, finance, and law, 5) cooperation with private sectors for development of a digital training ecosystem, namely, Digital Platforms, Training Service Providers, and Payment Partners, 6) universities to monitor training quality and evaluate substance of the trainings, and 7) external researchers who carry out impact evaluations of Kartu Prakerja.

Government allocates the State Budget (APBN) to improve workforce skills. Provision of skills can be used to increase worker productivity, as indicated by changes in work status and increased income. A workforce that has high work competence and decent income can be a source of tax payments that can be used to finance other training programs so that more people can benefit. Kartu Prakerja has a sustainable training ecosystem and encourages increased financial performance of hundreds of training partners who can return as government’s income. Digital Platforms and Training Service Providers compete to provide the best service to the public.

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Internally, Kartu Prakerja beneficiaries receive a series evaluation administered to all eligible beneficiaries, conducted at three different times and aimed to track employment status, incentive utilization, and perceptions of training. In addition, Kartu Prakerja also collects and analyzes the information about training, and partners that could be conducted real-time thanks to digitalization. Externally, national and international researchers from Harvard University, MIT, UNPAD, TNP2K, Prospera and the PRESISI research institute conducted impact evaluations with a robust and rigorous methodology. One of the methodologies used in impact evaluation is a randomized controlled trial (RCT) known as a golden standard in impact evaluation.

The main indicators to measure program benefits are employment status after attending the training and use of incentives to maintain welfare. Methods to track employment status and use of incentives are Evaluation Surveys and impact evaluation studies. Evaluation survey analysis was conducted by comparing conditions of beneficiaries before and after receiving the program. 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. To evaluate the impact of Kartu Prakerja, research collaborations were conducted with external researchers who applied more rigorous research methods.

The total number of applicants and beneficiaries of Kartu Prakerja as of November 2021 were 83,486,375 and 11,440,629, respectively. Kartu Prakerja ecosystem accommodates 1,562 occupancy-based trainings from 180 training providers which are sold on 7 digital platforms. Combined data from 2020-2021 Evaluation Survey shows that there are 30.34% of beneficiaries who have successfully changed their employment status from not working to working. Around 90.9% beneficiaries stated that Kartu Prakerja improved their work skills (National Labor Survey (Sakernas), February 2021). Impact evaluation research from JPAL-SEA distributed endline-surveys to beneficiaries and non-beneficiaries in August-October 2021. Some of the preliminary findings are: 1) receiving Kartu Prakerja increases employment (having a job or owning a business) by 8%, increases self-employment by 12%, and increases entrepreneurship by 30%, 2) the program increases the likelihood of earning any income by 8% and increases monthly income by IDR 122,500, 3) receiving the program leads to a 172% increase in using a certificate on the job market and a 10% increase using internet at work, 4) Kartu Prakerja increases food security by 6% and decreases financial hardship by 8%, 5) Kartu Prakerja increases e-wallet ownership by 53%.

Kartu Prakerja is supported by the Government of Indonesia pursuant to Presidential Regulation Number 76 of 2020 and Coordinating Ministerial Regulation Number 11 of 2020. Kartu Prakerja operates under the auspices of the Coordinating Ministry for Economic Affairs. Kartu Prakerja structure includes of Job Creation Committee (Komite Cipta Kerja) as policymaker, Implementing Team, Committee Secretariat, and Kartu Prakerja Program Management Office that runs the Kartu Prakerja. 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. The Digital Training Ecosystem developed by Kartu Prakerja is the first in Indonesia. There are 1,562 occupancy-based trainings offered by 180 Training Institutions and sold on 7 Digital Platforms. In addition, 5 Payment Partners (banks and digital wallets) also joined forces to help distribute incentives quickly and transparently. To match demand and supply of labor, Kartu Prakerja also cooperates with job platforms and provides job vacancy information for Kartu Prakerja Beneficiaries. Kartu Prakerja ecosystem has experienced significant and sustainable growth because it is supported by strong institutions.

Kartu Prakerja builds a collaborative ecosystem by cooperating with various ministries/institutions as well as private business, universities, and research institutions. Stakeholders involved in the formulation and determination of policies are Job Creation Committee (Komite Cipta Kerja) consisting of 12 ministers and institutional leaders (Coordinating Ministry for Economic Affairs, Presidential Chief of Staff, Minister of State Secretary, Minister of Home Affairs, Minister of Finance, Minister of Education and Culture, Minister of Labor, Minister of Industry, Minister of National Development Planning, Cabinet Secretary, Attorney General, Chief of Police of the Republic of Indonesia, Head of Financial and Development Supervisory Agency, and Head of National Public Procurement Agency). Kartu Prakerja Program Management Office is tasked with implementing policies and is responsible to the Chairperson of Job Creation Committee. In the established ecosystem, program implementation collaborates with private sectors, such as 1) digital platforms that become application-based or internet site-based training markets, 2) training providers whose role is to provide training, 3) payment partners that channel incentives digitally, and 4) job portals to provide information related to job market. Kartu Prakerja also built partnerships with universities to assess and monitor training content, and research institutions to evaluate the impact of Kartu Prakerja.

Key lessons learned include 1) support from government, clear regulations, and careful planning become the foundation for building strong institutions, 2) utilization of digital technology allows for continuous ecosystem development from training to job platforms, 3) full digital disbursement of incentive payments can be done by involving various distribution channels, 4) providing responsive contact centers, effective public communication, and relevance to community needs help in building positive perceptions of Kartu Prakerja, 5) real-time monitoring of all business processes encourages continuous improvement, and 6) internal and external program evaluations play a role in formulation of future policies One of the initiatives that will be carried out next year and is the main challenge is to provide offline and blended trainings, or also known as the Normal Scheme. Ensuring training delivered with three different teaching methods are equivalent and program coverage remains the main issue. The quality of training must be maintained to ensure an increase in competence of beneficiaries. To prepare for the Normal Scheme, Kartu Prakerja is conducting a Normal Scheme Pilot to understand the effectiveness of training with different teaching methods and learn about new implementations. The program continues to develop efficient business processes and synergies within the ecosystem.