COULD A SLOWING JOB MARKET SPELL A BOOM IN POSTGRADUATE TRAINING? OLIVER ROBINSON LOOKS AT CURRENT HIGHER EDUCATION OPTIONS FOR INDONESIA’S BEST AND BRIGHTEST STUDENTS

Quick-witted, gregarious and with a degree in international relations from a noted Jakarta university, Indra Putro is the kind of graduate you would expect companies to be rushing to recruit. Yet for all his personal and academic qualities, Indra, like so many other Indonesian graduates today, is searching for work.

As the effects of the global downturn reach Indonesia, and growth dips from 6.1% in 2008, to a likely 2.5% this year, much of Indonesia’s job market has seen a freeze in skilled recruitment.

“Many of my friends are finding it difficult,” confirms Indra. “We all have to use our initiative to get the job we want – especially when you consider the competition these days.”

In terms of hiring, Indonesian companies appear to be biding their time at present, hoping the financial situation improves sooner rather than later. Until they do, many graduates are using time to re-evaluate their career goals and enroll in postgraduate courses, in a bid to become more marketable to future employers.

Many academics, like Professor Mudrajad of Gajah Mada University, see this as a wise move. “At the moment, undergraduate degrees are too general. Those who earn a master’s degree have specialized skills that an undergraduate degree cannot provide.”

He says postgraduate courses at Gajah Mada are currently packed, with some applicants using redundancy packages to finance their degrees. Bina Nusantara University meantime reports that enrolments for its MBA programs have already risen by 10%.

The surge is happening in other countries too. In the United States, The Graduate Management Admission Council reports that numbers taking the Graduate Management Admissions Test (GMAT) have risen by 11.6% this year. Meanwhile, the University of Manchester has seen a 14% rise in postgraduate applicants, with University College London reporting a 21% increase. Looking further southward, postgraduate applications at Auckland University have risen by nearly a quarter over the last year.

While Indra had planned to eventually pursue an MBA, he admits the downturn was a dealmaker. While he hopes that financial markets look much healthier upon the completion of his degree, either way, he is confident that the studies he pursues now will better equip him for Indonesia’s changing business landscape.

The question of which industry sector our best and brightest students should target is an interesting one. Jakarta-based economist Kee Beom Kim of the International Labour Organization says the current recession and the advance of globalization have seen a relative rise in Indonesia’s manufacturing and modern services sectors as employers.

In 2008, services, including industries like telecommunications, became the largest employer in Indonesia, overtaking agriculture. The shift has seen a rise in demand for higher skilled technical staff, and for soft skills, including managerial, problem solving, English language, teamwork, communications and customer relations.

“The criteria has changed irreversibly and these characteristics are expected to become all the more important going forward,” observes the Korean economist.

Aside from developing these skills through further qualifications, experts say leading industries like mining, oil and gas will continue to absorb graduates with relevant technical and specialist training – especially in roles which have seen a traditional shortage of qualified Indonesian candidates.

Government legislation also favors the employment of skilled Indonesians over foreigners. If the training of our skilled technical labor force rises to the needs of the market, Indonesia should see a marked increase in technical job opportunities within multinational corporations over the next few years.

Yet while technical jobs often provide higher salaries at entry level, non-technical sectors can also allow more room for growth – and skills that are transferable across industries, leading to better long-term employment opportunities.

Ultimately, there are no golden tickets into the skilled job market, especially during testing times. Instead, students need to identify their chosen vocations, and pursue relevant higher education, while developing personal skills and job skills along the way. As Kee Beom Kim notes, “In my opinion, it is not a matter of sector, but of skills. For most well qualified graduates, job prospects still remain bright.”

Contacts

Binus University
9 Jln KH Syahdan, Palmerah, Jakarta tel: (0)21 534 5830 www.binus.edu
Institute Business Informatika Indonesia
Jln Yos Sudarso Kav 87, Sunter, Jakarta tel: (0)21 6530 7062 www..ibii.ac.id
Gajah Mada University
Jln Teknika Utara, Yogyakarta tel: (0)274 55 6912 www.ugm.ac.id
PPM School of Management
9-19 Jln Menteng Raya, Jakarta tel : (0)21 3190 2956 www.ppm-manajemen.ac.id
IPMI Business School
Jln Rawajati Timur I No. 1 Kalibata, Jakarta tel : (0)21 797 0419 www.ipmimba.ac.id