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Causes of Low Absorption of Local Workers to Labor Fulfillment in Indonesia

The Indonesian Journal of International Clinical Legal Education · Vol. 6 No. 4 (2025) · hlm. 507–530

DOI
10.15294/iccle.v6i4.14502
ISSN
2721-8368
Terbit
2025-10-31
Penerbit
Universitas Negeri Semarang
Bahasa
eng
Lisensi
creativecommons.org/licenses/by-sa/4.0

Abstrak

This study aims to identify the factors contributing to the low absorption of local workers in Indonesia, focusing on the skills gap, the impact of digital transformation, and the effectiveness of labor policies. The methodology employed is qualitative, utilizing interviews, questionnaires, and literature reviews. The results indicate that the skills gap between the local workforce and the requirements of modern industries is a significant issue, as many workers lack skills relevant to market demands. Furthermore, rapid digital transformation has caused disruptions across various sectors, yet the local workforce’s readiness to adapt remains low. Government initiatives, such as the Pre-Employment Card Program, have not been entirely effective in upskilling the local workforce, and competition with foreign workers exacerbates this problem. This study recommends enhancing the education and training system to better align with industry needs, increasing access to quality training programs, and developing policies that support local skills development. These findings are expected to contribute to the formulation of more effective and sustainable labor policies in Indonesia.

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  • Universitas Teknokrat Indonesia
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Masyita Isnadya Risky SalsabilaAfiliasi tidak diketahui2
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Masyita Isnadya Risky SalsabilaAfiliasi tidak diketahui1
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Muhammad AkbarUniversitas Teknokrat Indonesia1
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Sumber metadata: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/iccle/oai, pertama di-harvest 5 Nov 2026, terakhir terlihat 5 Nov 2026.
Metadata asli (oai_dc) 
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	<dc:title xml:lang="en">Causes of Low Absorption of Local Workers to Labor Fulfillment in Indonesia</dc:title>
	<dc:creator xml:lang="en">Pratama Herry Herlambang</dc:creator>
	<dc:creator xml:lang="en">Suwinda, Suwinda</dc:creator>
	<dc:creator xml:lang="en">Muhammad Habiby Abil Fida Safarin</dc:creator>
	<dc:subject xml:lang="en">Digitalization</dc:subject>
	<dc:subject xml:lang="en">Tax Reform</dc:subject>
	<dc:subject xml:lang="en">Strong Institution</dc:subject>
	<dc:subject xml:lang="en">Efficiency</dc:subject>
	<dc:description xml:lang="en">This study aims to identify the factors contributing to the low absorption of local workers in Indonesia, focusing on the skills gap, the impact of digital transformation, and the effectiveness of labor policies. The methodology employed is qualitative, utilizing interviews, questionnaires, and literature reviews. The results indicate that the skills gap between the local workforce and the requirements of modern industries is a significant issue, as many workers lack skills relevant to market demands. Furthermore, rapid digital transformation has caused disruptions across various sectors, yet the local workforce’s readiness to adapt remains low. Government initiatives, such as the Pre-Employment Card Program, have not been entirely effective in upskilling the local workforce, and competition with foreign workers exacerbates this problem. This study recommends enhancing the education and training system to better align with industry needs, increasing access to quality training programs, and developing policies that support local skills development. These findings are expected to contribute to the formulation of more effective and sustainable labor policies in Indonesia.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2025-10-31</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/iccle/article/view/14052</dc:identifier>
	<dc:identifier>10.15294/iccle.v6i4.14502</dc:identifier>
	<dc:source xml:lang="en">The Indonesian Journal of International Clinical Legal Education; Vol. 6 No. 4 (2024): December; 507-530</dc:source>
	<dc:source>2721-8368</dc:source>
	<dc:source>10.15294/iccle.v6i4</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/iccle/article/view/14052/2430</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2024 The Indonesian Journal of International Clinical Legal Education</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>