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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) · pp. 507–530

DOI
10.15294/iccle.v6i4.14502
ISSN
2721-8368
Published
2025-10-31
Publisher
Universitas Negeri Semarang
Language
eng
License
creativecommons.org/licenses/by-sa/4.0

Abstract

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.

Keywords

Collaboration network of the authors

37 authors · 93 co-authorship links

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Universitas Teknokrat Indonesia
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
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Co-authorOrganisationJoint articles
Tri SulistiyonoAffiliation unknown8
Lisa IkhsanaAffiliation unknown3
Ahmad Zaharuddin Sani Ahmad SabriAffiliation unknown2
Dwi Pangestu KhoirunisaAffiliation unknown2
Felisha ChandraAffiliation unknown2
Masyita Isnadya Risky SalsabilaAffiliation unknown2
Bayangsari WedhatamiAffiliation unknown2
Ary Muktian SyahAffiliation unknown2
Chirstoverus MarcoAffiliation unknown2
Ridwan ArifinAffiliation unknown2
Rifki FakihudinAffiliation unknown2
Nur Aisyah AbdurrahmanAffiliation unknown2
Sulaiman TanAffiliation unknown2
Wipaporn SawasdeeAffiliation unknown2
Masyita Isnadya Risky SalsabilaAffiliation unknown1
Desty Puspita MaharaniAffiliation unknown1
Muhammad AkbarUniversitas Teknokrat Indonesia1
Syahwal SyahwalAffiliation unknown1
Faridhotun RidhoAffiliation unknown1
Dian LatifianiAffiliation unknown1
Baidhowi BaidhowiAffiliation unknown1
Farkhan Radyafani WinarnoAffiliation unknown1
Ahmad HabiburrahmanAffiliation unknown1
Safari Dwi ChandraAffiliation unknown1
Moch Fahmi AbdulazizAffiliation unknown1
Nur Arissa Izzati binti Mohamad RokiAffiliation unknown1
Aju PutrijantiAffiliation unknown1
Yos Johan UtamaAffiliation unknown1
Silvan Susanto PrayogoAffiliation unknown1
Suci RamadhaniAffiliation unknown1
Talitha Faya Putri AsariAffiliation unknown1
Martitah MartitahAffiliation unknown1
Azzahra Hifz Aldin FitradaAffiliation unknown1
Noveria Sekar SulistyowatiAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/iccle/oai, first harvested 5 Nov 2026, last seen 5 Nov 2026.
Original metadata (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>