Vol. 12 No. 3 November 2021 https://doi.org/10.18196/jgp.123141 http://journal.umy.ac.id/index.php/jsp 331 AFFILIATION: 1,2,3,4Universitas Muhammadiyah Jakarta CORRESPONDENCE: abdul.rahman27316@gmail.com HOW TO CITATE: Rahman, A., Dwi, W., Zebua, A., & Satispi, E. (2021). Policy Formulation in Integrating Vocational Education Graduates With The Labor Market in Indonesia. Jurnal Studi Pemerintahan (Journal of Government & Politics), 12 (3), 331-371 ARTICLE HISTORY: Received:2021-06-10 Revision:2021-08-19 Accepted:2021-08-19 Policy Formulation In Integrating Vocational Education Graduates With The Labor Market In Indonesia ABDUL RAHMAN*1, WINDA DWI ASTUTI ZEBUA2, EVI SATISPI3, ANDREAN ALAN KUSUMA4 ABSTRACT: This study aims to analyze the policy formulation in integrating vocational education graduates with the labor market in Indonesia. The expected objective of this research is to improve quality of policy formulation in the universeof vocational education and to increasing the massive absorption of vocational education graduates with the labor market in Indonesia. The framework of policy formulation with the model of Political Administrative Program (PAP) which consists of the elements: concrete objectives, evaluative elements, operational elements, political-administrative arrangements, and proceduralelements are used in this study. This research used a qualitative method with a phenomenological study. The results showed that the policy formulation in integrating vocational education graduates with the labor market in Indonesia is not fully optimal. there are some weaknesses that become critical notes such as: far gap between the projected proportion of job opportunities per year with the number of graduates in vocational education and training, lackof relevance of projections between Strategic Objective Performance Indica- tors (IKSS) and Program Performance Indicators (IKP) in the realm of courses and training, low projection target of i ncreasing Program Performance Indica- tors (IKP) per year until 2024, synergy of stakeholders (including the world of work) in the Vocational High Schools development program is still lacking, and fragility of the substance of employment in Law of the Republic of Indonesia Number 11 of 2020. Keywords: Policy Formulation; Vocational Education; Labor Market ABSTRAK: Penelitian ini bertujuan untuk menganalisis perumusan kebijakan dalam mengintegrasikan lulusan pendidikan kejuruan dengan pasar tenaga kerja di Indonesia. Tujuan yang diharapkan dari penelitian ini adalah untuk meningkatkan kualitas perumusan kebijakan di jagat pendidikan vokasi dan meningkatkan daya serap lulusan pendidikan vokasi secara masif dengan pasar kerja di Indonesia. Kerangka perumusan kebijakan dengan model Program Administrasi Politik (PAP) yang terdiri dari unsur: tujuan konkrit, unsur evaluatif, unsur operasional, tatanan politik-administrasi, dan unsur prosedural digunakan dalam penelitian ini. Penelitian ini menggunakan metode kualitatif dengan studi fenomenologis. Hasil penelitian menunjukkan bahwa perumusan kebijakan dalam mengintegrasikan lulusan pendidikan kejuruan dengan pasar kerja di Indonesia belum sepenuhnya optimal. terdapat beberapa kelemahan yang menjadi catatan kritis seperti: jauhnya kesenjangan antara proyeksi proporsi kesempatan kerja per tahun dengan jumlah lulusan pendidikan dan pelatihan vokasi, kurang relevannya proyeksi antara Indikator Kinerja Sasaran Strategis (IKSS) dengan Program Indikator Kinerja (IKP) dalam ranah kursus dan pelatihan, rendahnya proyeksi target peningkatan Indikator Kinerja Program (IKP) per tahun hingga 2024, sinergi pemangku kepentingan (termasuk dunia kerja) dalam program pengembangan SMK masih kekurangan, dan rapuhnya substansi ketenagakerjaan dalam Undang-Undang Republik Indonesia Nomor 11 Tahun 2020. Kata Kunci: Perumusan Kebijakan; Pendidikan kejuruan; Pasar Tenaga Kerja https://doi.org/10.18196/jgp.123141 http://journal.umy.ac.id/index.php/jsp mailto:abdul.rahman27316@gmail.com https://orcid.org/0000-0002-2150-2750 https://orcid.org/0000-0002-8289-2086 https://orcid.org/0000-0002-5326-4646 https://orcid.org/0000-0003-0007-2728 JURNAL STUDI PEMERINTAHAN INTRODUCTION In essence, education plays a crucial role in buildingthe nation and improving the welfare of society. Hence, each country strives to design its own educational mani - festo to reach that aims. In the Indonesia context, accord- ing to strategic study conducted by the Ministry of Na- tional Development Planning (Bappenas, 2019b), Indonesia’s education development strategy until 2045 includes: increasing access and participation in education, equi- table distribution of educational services, increasing the role ofthe community in education development, increasing teacher professionalism, changing learning approaches, improving school culture, improving reading culture, increasing foreign language mastery and preserving local languages, increasing educated workforce and entrepreneurship, increasing the field of sciencein colleges, colleges as centers of excellence, and increasing char- acter education, increasing vocational education. However, this projection is still confronted by three main prob- lems that are currently still pervading such as: First, the low com- petitiveness of innovation and lack of human resource compe- tence. Based on a study by the World Economic Forum (WEF) in 2019 in the framework of the Global Competitiveness Re- port, Indonesia’s ranking is in the 50th position out of 141 coun - tries worldwide. Although that position is relatively good, Indo- nesia is still left behind other ASEAN countries, such as Thai- land (40th), Malaysia (27th), and Singapore (1st). According 13 indicators measured, there were 2 indicators with the lowest scores: innovation capability (38 points) and human resources competence (64 points) (Schwab, 2019). Second, the low achieve- ment of the Human Development Index. According United Nations research (Nations, 2019), Indonesia is only in 111th place out of 189 countries measured. Indonesia’s position in various indicators is still relatively low, especially the indicator for the average length of schooling which is only 8 years. This condition is not so good, especially when compared with neighbor coun- tries such as Singapore (11.5 years), Malaysia (10.2 years), and Philippines (9.4 years). 332 Vol. 12 No. 3 November 2021 333 Third, low of per-worker labor productivity. The results of the Asian Productivity Organization (APO) study in 2020 showed that the productivity of Indonesian workers is low. Per-worker labor productivity levels of Indonesia only 19%. This achieve- ment makes Indonesia lagging behind neighboring countries suchas Thailand (24%), Sri Lanka (25%), and Malaysia (43%). Also, from other countries such as: Australia (76%), Hong Kong (91%),and the US (100%) (Asian Productivity Organisation, 2020:46). The complexity of the problems is increasing along with the challenges of education services that are not yet optimal, espe- cially in border areas (Rahman, Mawar, Wahyuning Dyas Tuti, Handayani, & Sahrul, 2021) and employment for the Indone- sian population in the future. Recent (McKinsey & Company, 2019) empirical studies showed that about 16 % of work activi - ties in the Indonesian economy could be automated by 2030, under a midpoint automation adoption scenario. This percentage is equivalent to the loss of 23 million jobs in 2030. Underthe less likely fastest scenario for automation adoption, that proportion could even rise to 33% (2019). According to these empirical data, the education system in Indonesia must be progressively improved. One of the educa- tional entities that must get the government’s attention is voca- tional education. This is because the effectuation of vocational education is intended to bearing graduates who are ready to work, who have skills according to the needs of the working world. On the other hand, as (Billet, 2014) stated, vocational education is a very significant and valuable dimensions. Its purposes especially are directed to fulfill salient social and economic purposes. Experience in India shows that vocational education in the middle school stage can increase the chances for graduates in getting higher income compared to general secondary education (Agrawal & Agrawal, 2017). In Turkey, the development of voca- tional education and training (VET) has a determinate impact in improving the quality of the labor supply (Barabasch & Petrick, 2012). In Canada, co-investment and collaborative applied re- search between college communities, polytechnics, and company partners able to produce intensify productivity, increase sales, and better new product development. JURNAL STUDI PEMERINTAHAN Meanwhile in Australia, transformation of vocational education through the Training Reform Agenda (TRA) delivers labor to be more sensitive to industry needs and not fall down in stiff educational governance so that could produce the skills needed to reconstruct development of Australia (Jones, 2018). In Indonesia, the policy regarding vocational education is explicitly stated in Law No. 20 of 2003 concerning the National Education System. Article 15 of the Law states “The type of edu- cation includes general education, specificity, academic, profes - sion, vocational, religious education and special education” (Law Number 20 of 2003 concerning The National Education Sys- tem, 2003). At a more operational policy level, based on the Regulation of the Minister of Education Number 45 of 2019 concerning Organization and Work Procedure of the Ministry of Education, Culture, Research and Technology the Director- ate General of Vocational Education was formed which has the tasks for organizing the formulation and implementation of poli - cies in the field of vocational education (Culture, 2019). In this regulation, the scope of vocational education incl udes: Vocational Secondary Schools, Vocational Higher Education, and Course and Training Institutions. GRAPH 1. OPEN UNEMPLOYMENT RATE (TPT) ACCORDING TO THE HIGHEST ENROLLED EDUCATION (%), 2018 - 2020 Source: Central Statistics Agency (BPS) (2020) Meanwhile, despite various products of vocational education policies have been made, the output of vocational implementa-tion has not yet met expectations. In fact, vocational education graduates are the highest contributor to the Open Unemploy- ment Rate (TPT) as measured by the Central Statistics Agency (BPS) (2020) as shown in the graph 1. 334 Vol. 12 No. 3 November 2021 335 This figure factually shows that vocational education gradu- ates (as reflected through vocational secondary schools/SMK and diplomas) are the largest contributor to the Open Unemploy- ment Rate from all levels of education in Indonesia in 2020 with a cumulative percentage of 15.25%. These data explicitly prove that vocational education graduates have not been optimally ab- sorbed by the labor market. Therefore, this research was conducted to analyze how policy formulation in integrating vocational education graduates with the labor market in Indonesia. This research is essential to im- proving policy formulation in the universe of vocational educa- tion, also for increasing the massive absorption of vocational education graduates with the labor market in Indonesia. LITERATURE REVIEW POLICY FORMULATION In the public policy cycle, formulation is one of the crucial stages. The policy formulation is carried out after the public prob- lem has been admitted government attention need. (Howlett & Mukherjee, 2016) describes policy formulation as the policy- making stage in which the various options available are consideredand then reduced to a number of sets that can be agreed upon byrelevant policy actors, especially in government, that can be usedto address policy issues. Policy formulation also can be defined as development of policy alternatives to solve problems on thepublic agenda. Policy formulation takes place in government bureaucracies, interest group offices, legislative committees, special commission meetings, and policy planning organizations,otherwise known as think tanks (Dye, 2013). In line with that thesis, (Dunn, 2017) also said that policy formulation was carried out when officials formulate policy alternatives to facing a problem. On the other hand, (Knoepfel et al., 2011) articulates policy formulation terminology with the term “policy programming”. Furthermore, policy programming was constructed into the JURNAL STUDI PEMERINTAHAN framework known as the Political Administrative Program (PAP). PAP represents the set of regulatory actions and norms deemed necessary by the parliament, government, and executing authori- ties for the implementation of public policies (Knoepfel et al., 2011). In this study, the main theory used as a tool for analysis is the Political Administrative Program (PAP) framework. The con - sideration in choosing a PAP is because the elements and the derivatives in its framework are more representative and contex - tual in answering research questions. There are two main ele- ments in the Political Administrative Program (PAP) framework: substantive elements and institutional elements, both elements have respective derivatives as shown in the figure below: FIGURE 1. THE ELEMENTS OF A POLITICAL-ADMINISTRATIVE PROGRAM Source: Knoepfel et al., (2011:154) The substantive elements are the core or internal layers which consist of: 1) Concrete objectives; 2) Evaluative elements, and 3) Operational elements. Meanwhile, the institutional elements are the external skin which consist of: 1) Political-administrative ar- rangements (financial means and other resources) and 2) Proce- dural elements. (Knoepfel et al., 2011) stated that concrete objec- tives define the status to be achieved by the adopted solution that would be considered as satisfactory. They describe the de- 336 Vol. 12 No. 3 November 2021 337 sired social status in a field of action once the public problem is resolved. Concrete objectives also imply the definition of units of measure or indicators that refer to the effects of the programs in social reality (indicators of effectiveness). The policy makers should not be confused with the indicators that describe admin - istrative measures or activities in themselves. According to this action logic, the aim of a policy is not to produce services/ad- ministrative activities in themselves, but to change social reality in accordance with the explicit or implicit provisions. At the policy formulation stage, the policy evaluation process has even been implemented. It is because evaluation has a very broad scope, starting from identification of needs or planning, implementation, until the impact of policies or programs. Evalu - ation is a methodology for studying the depth and extent of the need for human services and whether the services are likely to be used, whether the services are sufficient to meet the identified unmet needs, and how far the services are offered as planned and actually help people who need by reasonable cost in the poli- cies or programs (Linfield & Posavac, 2019). The evaluative ele- ment relates to the type of data (previous policy results) that col - lected so as to help facilitate the precise ascertainment of the extent to which the defined objectives have been fulfilled and with respect to the durations and techniques in a particular field (natural sciences, social sciences, statistics or economics) (Knoepfel et al., 2011). (Knoepfel et al., 2011) use the term ‘operational element’ here because it defines the means used to motivate those affected (par- ticularly target groups) to comply with the policy provisions. This is the sine qua non condition for rendering a policy operational. Without this indispensable element, even the most legitimate objectives will go unheeded. This ‘motivation’ can take a num- ber of forms, the following 4 (four) are the main forms usually identified in this context: First, the regulatory mode is based on bans, obligations and the allocation of various rights that ma y be the object of sanctions in the case of failure to respect them. In JURNAL STUDI PEMERINTAHAN this mode, the operational elements cover the general prohibi- tion of an activity (for example, construction), the lifting of a ban by the granting of a permit or special authorization (for ex- ample, authorization to use something, authorization to market something), and in the form of a general obligation (to wear a safety belt or safety helmet, for example) with a sanction (for example, fine) imposed in the case of non-compliance. Second, the incentive mode is more direct than the regulatory mode. It works on the basis of financial payments aimed at influ - encing the behavior of target groups by means of the ‘price sig - nal’. The incentive may be of a negative (tax, incentive levy) or positive nature (tax relief, subsidy) with the intention of (re)distributive effects. Third, the persuasive mode uses an infor- mation strategy to convince target groups of the proposed objec - tives. This type of public action often accompanies other forms of intervention. It may, however, become the main mode of ac- tion, particularly in areas involving personal liberties that are strongly protected by constitutional rights. This is mainly the case with public health policies (for example, the fight against AIDS, prevention of tobacco use and illegal drug addiction) and efforts to combat racism. Fourth, the last intervention mode in- volves the direct supply of goods and services to the public. This is obvious in the case of many social benefits. On the other hand, as stated above there are two derivatives of institutional elements. First, Political-Administrative Arrange- ments (PAA). These provisions of the PAA refers to the choice of competent actors/authorities for the implementation of the policy and the administrative services/allocation of resources, in par- ticular human resources (for example: number of posts, profes- sional qualifications) and financial resources (technical equip- ment, budget provided to cover ongoing expenses). Second, pro- cedural elements. The provision of public services generally ne - cessitates the observance of minimal procedures, not only for the purpose of creating a consensus with regard to the basic data. Therefore, Procedural elements play an important role, the scope 338 Vol. 12 No. 3 November 2021 339 of the procedural elements include, for example, the administra- tive decision, public law contract, directives and other special instruments to ensure the transparency of the exchange of infor - mation. More generally, the procedural elements of policies de- termine the roles and relative power of policy actors in the con- text of all implementation processes later. In this sense, they should be interpreted as institutional rules, either general or spe - cific to public policy (for example, consumer protection policies, environment policies, labor policies) (Knoepfel et al., 2011). VOCATIONAL EDUCATION Apart from general education, vocational education is one of the main spectrums in the universe of education. Principally, vocational education can take place at the level of higher educa - tion, secondary education, post-school, courses and training as well as other education / training. Vocational education is formu - lated to develop the abilities of soft skills and (especially) hard skills for prepare human resources (work or entrepreneurship) to have values that can contribute significantly to increased productivity. A further projection is that the implementation of vocational education is expected to contribute progressively to increasing the nation’s competitiveness. The ILO (together with UNESCO) uses the terminology TVET (Technical and Vocational Educa- tion and Training) to refer to those aspects of the educational process involving, in addition to general education, the study of technologies and related sciences, and the acquisition of practi- cal skills, attitudes, understanding and knowledge relating to occupations in various sectors of economic and social life ( Pilz, 2017). Although it is often not the main choice, Vocational educa- tion is a significant and pithy project to develop the necessary capacities to meet the needs of society, help individuals identify and become competent in their chosen occupations, and main- tain those competencies throughout a long working life, all of JURNAL STUDI PEMERINTAHAN which depend on the process of thinking and acting (Billett, 2016). Dewey stated that vocational education has two key goals: help individuals to identify jobs that are suitable for them and de- velop the capacity to do those jobs (David Guile & Unwin, 2019). Nowadays vocational qualifications need to be expanded to face the challenges of the industrial revolution 4.0 (even 5.0)and the capabilities of the twenty-first century. Industry needsvocational education that prioritizes individual development andsocial goals such as critical thinking, adaptability, creativity, and entrepreneurship as prerequisites for workforce relevance (Hodge, Atkins, & Simons, 2016; Billett, 2016; Jones, 2018). Meanwhile, Rauner classified 8 components of work competence in the vo- cational education ecosystem such as: creativity, clearness/pre- sentation, functionality, sustainability, efficiency/effectiveness, orientation on business and work process, social responsibility, and environmental responsibility. Vocational education and training is very important for the competitiveness of industries in leading manufacturing countries. In Germany which has a prominent dual VET system by inte- grates both work-based practice and school-based learning through the complete course of the study, the employers have a core role as they are committed to recruit students and provide them with the practical skills and education needed (Niranjan, 2018). Mean- while in Nordic countries like Norway for example, vocational education (particularly vocational colleges) seen as sources of important and desirable knowledge and competence. The man- date of vocational colleges in Norway is to offer education pro - grams that are needed in working life and are attractive for stu- dents, close cooperation with local, regional and national indus - try and businesses. As a result, the demand for labor graduated from vocational colleges is further emphasized in recent Norwe - gian industrial policy (Lund & Karlsen, 2020). 340 LABOR MARKET A labor market is a group of jobs, between which workers can Vol. 12 No. 3 November 2021 341 switch with relative ease (for example, computer programmers, lawyers, or unskilled workers), located within a geographic area usually defined by the commuting distance of workers (Naidu, Posner, & Weyl, 2018). Concerns about the lack of competition in the labor market have reached policy debates. There is grow- ing concern about increasing market concentration and its po- tential effects on the economy, including increasing markups and decreasing share of the workforce (Azar, Marinescu, & Steinbaum, 2020). The European Union (28 countries) have initiated a new wave of workforce market reforms after 2008-2009 crisis to address a several of issues, including segmentation of labor market. This is particularly the case with reforms in labor protection, namely protection against dismissals and restrictions on contracts for certain periods of time; the generosity and coverage of unem- ployment benefits; and the intensity of active labor market poli - cies (Eichhorst, Marx, & Wehner, 2017). Meanwhile, in many Anglophone countries, especially in Australia and Canada, im- proving the relationship between post-secondary qualifications and employment depends more on the structure of the labor market than on the nature of qualifications: it is primarily a matter of demand for qualifications rather than supply (Wheelahan & Moodie, 2017). Germany, Canada, The United Kingdom, Austria is an among other countries who focusing on developing solid, innovative vocational education aspects to bolster their future labor strate- gies (Jones, 2018). In China case, since government promoted transition of the economic system from a planned economy to a market-oriented economy in 1978, China has experienced rapid economic development and huge economic growth. The Chi- nese government enforced gradualism labor market reform in which the government retains and controls the public sector (e.g. state-owned enterprises), and simultaneously promotes the pri- vate sector (e.g. privately owned enterprises, foreign-owned en- terprises, and the self-employed sector) (Ma, 2018). JURNAL STUDI PEMERINTAHAN Nowadays, the Covid-19 pandemic that has hit the world has had a huge impact on various lines of life. The OECD has called the impact of changes in pandemic conditions a “double hit”. In the OECD projection, besides causing the GDP of OECD coun- tries to fall 9.3% in 2021, the double hit also significantly in- creases unemployment in all OECD countries. According to the OECD, unemployment in OECD countries has fallen to its low - est level in 50 years at 5.3% at the end of 2019, but has more than doubled at the end of June 2020 to nearly 11.4%. The in- crease is well above the levels seen during the global financial crisis (OECD, 2020). This phenomenon is illustrated in the be- low graph: GRAPH 2. UNEMPLOYMENT RATE OF THE LABOR FORCE IN OECD COUNTRIES Source: OECD (2020) In the double hit scenario unemployment remains high, last- ing even longer in OECD countries, increasing the risk of hys- teresis as long-term unemployment takes root and the participa- tion workforce falls. The OECD-wide unemployment rate is pro- jected to be 8.9% by the end of 2021 under this scenario. Em- ployment is projected to decline significantly in most OECD countries with the largest declines in Colombia, the United States and Ireland (OECD, 2020). If the double hit scenario does not abate for the next 4 years, then there will be a bigger employment problem. This is because the OECD predicts that in 2025 there will be an escalation in the use of robots to support employment functions in various 342 Vol. 12 No. 3 November 2021 343 lines of life. The cost of industrial robots continues to decline and the cost of labor is increasing, the cost savings of using tech- nology to replace the workforce are starting to become signifi- cant, even in developing countries. South Korea, Japan, and Canada are the top 3 countries with the highest percentage of robot adoption in 2025 with a percentage of 33%, 25%, and 24% (OECD, 2019). STATE OF THE ART OF THE RESEARCH The table below describes previous studies on public policy topics. The description of the state of the art is also intended to compare and knowing the novel and unique of this research. TABLE 1. STATE OF THE ART OF THE RESEARCH No. Research Title (Author, Year) Theory/ Concept Research Methods Results 1 Analyzing Coalitions in China’s Policy Formulation: Reforming The Role of Stateowned Enterprises in China’s Energy Sector (Efird, Lester, & Wise, 2016) The Expected Utility Model and the Senturion Model Analysis of plausible outcomes of the collective decision making processes (CDMPs) China that may be engaged in over the role of its state owned enterprises in the upstream oil and gas sector. Also, analysis used KAPSARC Toolkit for Behavioral Analysis (KTAB) to construct a particular model of CDMPs, based on the Spatial Model of Politics (SMP) Regarding of private companies’ entry into energy markets in China, the research find that little reform is likely. The inertia of key actors holds back the potential for a significant opening of the energy sector. Despite the erosion of CNPC’s political clout, there is little consensus for major reform to China’s market position. 2 The Importance of Public Diplomacy in Formulating a Maritime Policy for The Indian Ocean Region (Senaratne, 2016) Public Diplomacy Concept Content analysis method The use of public diplomacy is a beneficial tool in formulating a common maritime policy. It also argues that this tool is useful in influencing public and governments in cooperating towards formulating and implementing policies and strategies that are important for maritime safety and security in the Indian Ocean Region. JURNAL STUDI PEMERINTAHAN 344 No. Research Title (Author, Year) Theory/ Concept Research Methods Results 3 Is the Participatory Hierarchy of Case study regarding (Decisional) participation has Formulation of Policy Strategies Participation formulating Austrian adaptation policies its benefits in formulating comprehensive policy Worth the Effort? The Case of through stakeholder involvement section strategies but that it is most likely not able to overhaul Climate Change stakeholder well-documented Adaptation in Austria weaknesses, such as weak political commitment and (Prutsch, Steurer, & Stickler, 2018) implementation failures. 4 Electronic SMARRT Literature study from The adoption of electronic Governance Government resources such as: governance is yet to be Platform: Towards Framework books, journals and achieved due to the low level Overcoming the (Simple, government websites of of literacy rate and government Challenges of Moral, 20 states were analysed inability to provide the Non-Inclusion of Accountable, to ascertain whether necessary infrastructure. The Citizens in Public Responsive, there are avenues for Federal Government of Nigeria Policy Formulation Responsible citizens to interact with should be produce a sound and and governments in policy and clear guideline on how to Implementation in Transparent formulation as a way of adopt electronic governance in Nigeria Government) promoting participatory policy formulation through an (Gberevbie, Ayo, Iyoha, Duruji, & governance increase in budgetary allocation towards Abasilim, 2018) infrastructural development and mass education of citizens. 5 Vocational Skill Quantitative research by A large section of the Education and Development nationally representative population in the age group Training in India: a of Vocational survey on employment 15–59 years does not have any Labour Market Education and unemployment kind of formal training. Among Perspective (Agrawal & and training (VET) the VET holders, a large share is accounted for by non-formal Agrawal, 2017) trainees. Quite a high proportion of formal trainees in the workforce remain unemployed reflecting under utilization of human resource. 6 Socio-technical Socio- Qualitative approach The 4th IR’s association with Imaginary of The Technical with literature review digitalization and artificial Fourth Industrial Imaginary intelligence is ambivalent. Revolution and Its Implications for Concept Meanwhile, technology and artificial intelligence are Vocational Education and entwined with social relations, being sites of class struggle. Training: a Literature Review (Avis, 2018) Vol. 12 No. 3 November 2021 345 No. Research Title (Author, Year) Theory/ Concept Research Methods Results 7 The Importance of Vocational Education Institutions in Manufacturing Regions: Adding Content to a Broad Definition of Regional Innovation Systems (Lund & Karlsen, 2020) 8 Vocational Education Qualifications’ Roles in Pathways to Work in Liberal Market Economies (Wheelahan & Moodie, 2017) Innovation Systems Framework Vocationally Oriented Qualifications Concept Qualitative approach with descriptive methods Case studies based on Australia and Canada experience at three levels of analysis: at the national level, meso level, and by whether qualifications are used as a signal in regulated occupations or as a screen in unregulated occupations. Skilled workers and engineering technicians is the keys when implementing new manufacturing technologies. Furthermore, the research explain how the vocational education institutions and Regional Innovation Systems (RISs) are co-evolving with emerging technologies in terms of changed knowledge demands in the industry, prompting new education programmes in vocational education institutions. Improving links between postsecondary qualifications and occupations depends more on the structure of the labour market than on the nature of qualifications: it is mainly an issue of the demand for qualifications rather than their supply. Source: Processed by Researchers (2021) Although the topic is relatively same with the researchs be- fore, which is regarding policy formulation and vocational edu - cation, but from various contexts, this research is different from the eight studies above. For example, from the context of sub- stance, there has been no research that has tried to analyze as- pects of policy formulation in integrating vocational education graduates with the labor market. In addition, from the context of the research locus, no research with this substance has been conducted in Indonesia. Therefore, this research clearly has its own novelty. JURNAL STUDI PEMERINTAHAN RESEARCH METHOD This research used a qualitative method with a phenomeno- logical study. A qualitative approach was chosen to be able to further exploration and understanding the meaning of individu- als or groups ascribe to a social or human problem (W. J. Creswell & Creswell, 2018). Meanwhile, phenomenological studies de- scribe the common meaning for several individuals of their lived experiences of a concept or a phenomenon to be a description of the universal essence (J. W. Creswell & Poth, 2018). In the context of this research, phenomenological studies are internal- ized to getting a grasp of the very nature of policy formulation in integrating vocational education graduates with the labor mar- ket in Indonesia. This research utilized primary data and secondary data. Pri- mary data obtained from in-depth interview and online observa- tion. In-depth interviews conducted through the Zoom Meeting application and based on purposive technique. Meanwhile, online observation conducted through the YouTube application. The peoples who in charge of policy formulation in integrating voca - tional education graduates with the labor market in Indonesia were selected to be interviewed deeply and determined as sub- jects in online observations such as: such as: Minister of Educa - tion, Culture, Research and Technology, Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Man- power Sector, Director General of Vocational Education, and Director of Courses and Training Directorate General of Voca- tional Education, Ministry of Education, Culture, Research and Technology. On the other hand, secondary data obtained from desk study on the documents such as: National Medium-Term Develop- ment Plan 2020-2024, Strategic Plan of the Directorate General of Vocational Education 2020-2024, Law of the Republic of In- donesia Number 13 of 2003 concerning Employment, Law of the Republic of Indonesia Number 11 of 2020 concerning Job Creation, Regulation of the Minister of Education, Culture, Re- 346 Vol. 12 No. 3 November 2021 347 search, and Technology, handbook of priority programs at the Directorate General of Vocational Education, Directorate annual report, report of the performance and budget evaluation, etc. Data collection was carried out from November 2020 to March 2021. In addition, in order for the research to be more contex- tual, research was limited by determining the focus of research which was determined based on indicators in substantive ele- ments and institutional elements of public policy formulation, namely: 1) Concrete objectives; 2) Evaluative elements; 3) Op- erational elements; 4) Political-administrative arrangements (fi- nancial means and other resources); and 5) Procedural elements (Knoepfel et al., 2011). Data were analyzed through three con- current flows of activity: (1) data condensation, (2) data display, and (3) conclusion drawing / verification (Miles, Huberman, & Saldana, 2014). RESULT AND DISCUSSION CONCRETE OBJECTIVES At the macro level, concrete objectives in policy formulation in integrating vocational education graduates with the labor market in Indonesia are reflected in the objectives, indicators, and targets of National Medium-Term Development Plan (RPJMN) 2020-2024 who designed by the National Development Planning Agency (Bappenas). In the RPJMN document, there are 9 objectives which projected throughout 2020-2024. The as- pect of the relevance of education and manpower is included in the seventh objective, namely increasing labor productivity and creating employment opportunities. The indicators and target on these objectives are showed in Table 2. The data in the table above clearly shows that the proportion of job opportunities per year is not equal with the number of graduates in vocational education and training in Indonesia. As a baseline, in 2020 number of employment in the labor market is only in the range of 2.7 to 3 million people, while the number of graduates in vocational education and training reaches 3.82 JURNAL STUDI PEMERINTAHAN million people, so that there is unemployment gap of 820 thou- sand - 1.12 million people. TABLE 2 OBJECTIVES, INDICATORS, AND, TARGETS OF NATIONAL MEDIUM-TERM DEVELOP- MENT PLAN (RPJMN) 2020-2024 Objectives Indicators Target in 2020 Target in 2024 348 Increasing labor productivity and creating Provision of employment per year 2.7 - 3.0 million people 2.7 - 3.0 million people employment opportunities Number of vocational education and training graduates 3.82 million people 5.96 million people Gap 820 thousand – 2.96 - 3.26 million 1.12 million people people Source: Bappenas (2019)(Data Processed by Researchers) In 2024 too, even with a bigger gap. This is because the pro- jection number of employment in the labor market is still same in the range of 2.7 to 3 million people, while the number of graduates in vocational education and training has increased sig- nificantly until 5.96 million people. This practically also creates a bigger gap, the number of unemployed graduates of vocational education and training in 2024 is projected to reach 2.96 - 3.26 million people. This reality is very worrying, especially in a pandemic like to - day. An empirical studies using google trends data and the ARIMAX model showed that during the COVID-19 pandemic period (2020) in Indonesia the open unemployment rate is ex- pected to increase, with a range of 5.46% to 5.70% (Rizky, Fajar, Prasetyo, & Nonalisa, 2020). The National Medium-Term Development Plan (RPJMN) 2020-2024 is a development reference, both at the central gov- ernment level and at local government level. At the central gov - ernment level, Ministries and Agencies internalize the RPJMN through the Ministry Strategic Plans or Agency Strategic Plans. Whereas at the local government level, Provincial and District/ City government abstract the RPJMN into the Medium-Term Local Development Plan (RPJMD). In the context of the Directorate General of Vocational Edu- Vol. 12 No. 3 November 2021 349 cation, Ministry of Education, Culture, Research and Technol- ogy, there are Strategic Plan of the Ministry of Education, Cul- ture, Research and Technology 2020-2024. In that Strategic Plan indicators, there are Strategic Objective Performance Indicators or commonly abbreviated as IKSS and Program Performance Indicators or commonly abbreviated as IKP. The IKSS is a mea - suring tool that indicates the success of achieving the Strategic Goals of Ministries/Agencies, while IKP is a measuring tool that indicates the success of achieving the results (outcomes) of a pro - gram. At the operational level (micro), concrete objectives in policy formulation in integrating vocational education graduates with the labor market in Indonesia are reflected in the IKSS and IKP of Directorate General of Vocational Education, Ministry of Education, Culture, Research and Technology below: TABLE 3. PERFORMANCE INDICATORS OF THE DIRECTORATE GENERAL OF VOCATIONAL EDUCATION 2021-2024 Strategic Objective Program Performance Mea- Target Performance Indicators (IKSS) Indicators (IKP) sure 2021 2022 2023 2024 Percentage of Percentage of Vocational High % 66,5 67,7 68,8 70,0 vocational education School (SMK) graduates who graduates who get get employment/entreprene employment/entrepreneurship urship within 1 year after graduation with a within 1 year after graduation with a minimum salary of 1x minimum salary of 1x Regional Minimum Wage Regional Minimum (UMR) (IKP 2.4.1) Wage (UMR) (IKSS 2.4) Percentage of Higher % 54,1 56,1 58,0 60,0 Education Institutions Providing Vocational Education graduates who get employment/entrepreneurship within 1 year after graduation with a minimum salary of 1,2x Regional Minimum Wage (UMR) (IKP 2.4.2) Percentage of coursework and % 56,3 57,5 58,7 60,0 training graduates who get employment/entrepreneurship (IKP 2.4.3) Source: Culture (2021)(Data Processed by Researchers) JURNAL STUDI PEMERINTAHAN Directorate General of Vocational Education, Ministry of Education, Culture, Research and Technology includes the per- centage of vocational education graduates who get employment/ entrepreneurship within 1 year after graduation with a minimum salary of 1x Regional Minimum Wage (UMR) as IKSS. The IKSS is broken down into 3 IKP which represent vocational education entities such as: Vocational High School (SMK), Higher Educa - tion Institutions Providing Vocational Education, and Course and Training Institute. Based on table 3, it can be analyzed that among the three IKPs there is one that is irrelevant, namely the IKP 2.4.3. IKP which represents the target of the Course and Training Institute does not have a concrete minimum number. Whereas in IKSS it is clearly stated that the percentage of vocational education gradu- ates who get employment / entrepreneurship within 1 year after graduation have been targeted getting minimum salary of 1x Regional Minimum Wage (UMR). In addition, the target set and the increase each year is still relatively low because the average increase is only in the range of 1% to 2%. The most critical note is in IKP 2.4.2, because when compared with similar targets at the Directorate General of Higher Education, Ministry of Education, Culture, Research and Technology the number differ greatly. If in Directorate General of Vocational Education, Ministry of Education, Culture, Re- search and Technology (as shown on the table 3) the targe t since 2021 until 2024 is 54,1%, 56,1%, 58%, and 60%, in Directorate General of Higher Education di the same period (2021-2024) is 80%, 81%, 82%, and 82% (Ministry of Education, Culture, Research, 2020). It can be summarized that concrete objectives at the macro level are less feasible. Explicitly, it is clear that there is a large gap because in the National Medium-Term Development Plan (RPJMN) 2024 the projected number of provision of employ- ment per year is much smaller than the number of vocational education and training graduates. This gap results in the high 350 Vol. 12 No. 3 November 2021 351 potential for unemployment of vocational education graduates in the future. For this matter, when the government dares to set a big target for vocational education and training graduates, it should also be accompanied by a responsibility to provide (tar- geting) large employment opportunities as well. Meanwhile, at the micro level concrete objectives, there are two important aspects that deserve the attention of policymakers. First, the need for the Course and Training Institute to have a concrete minimum number in the Program Performance Indica - tors (IKP). This is important because the Course and Training Institute is one of the entities in the vocational education ecosys - tem besides Vocational High School (SMK) and Higher Educa - tion Institutions Providing Vocational Education. Therefore, if Vocational High Schools (SMK) and Higher Education Institu- tions Providing Vocational Education have a concrete minimum number in the Performance Indicators (IKP) Program, the Course and Training Institute should also have it. Second, the need for the Directorate General of Higher Edu- cation, Ministry of Education, Culture, Research and Technol- ogy to reformulate the target of Program Performance Indicators 2.4.2 (Percentage of Higher Education Institutions Providing Vocational Education graduates who get employment/entrepre- neurship within 1 year after graduation with a minimum salary of 1.2x Regional Minimum Wage). This is because when com- pared to the Directorate General of Higher Education, Ministry of Education, Culture, Research and Technology, the gap is quitefar (20% to 28%). Whereas, in terms of levels, both of them are equally at the higher education level, the basic difference is only in terms of nature, higher education is more academic, while vocational higher education is more practical. EVALUATIVE ELEMENTS In the context of policy formulation in integrating vocational education graduates with the labor market in Indonesia, evalua - tive elements will be analyzed from the main policies of each JURNAL STUDI PEMERINTAHAN educational entity at the Directorate General of Vocational Edu - cation Ministry of Education, Culture, Research, and Technol- ogy in 2020. As stated by the Director General of Vocational Education that “in the entity of Vocational High School, the main policy is the Vocational High School Center of Excellence (SMK CoE). The Vocational High School Center of Excellence (SMK CoE) policy in 2020 aims to improve learning in the world of work, increase the competence of teachers and heads of Vocational High Schools, as well as their facilities and infrastructure. Meanwhile, the priority areas in the SMK CoE include: machinery and con- struction, creative economy, hospitality, care services, and for- eign cooperation. The implementation of the SMK CoE was fol- lowed by 491 Vocational High Schools from a total of 2043 Vo - cational High School registrants, either public and private Voca - tional High Schools. In the Vocational Higher Education entity, the main policies are the Vocational Higher Education Strengthening Program (PPPTV). PPPTV aims to encourage the improvement of the quality of vocational higher education learning through revitaliz- ing learning facilities, improving the quality of human resources, increasing partnerships with the world of work, and encourag- ing the production of quality online modules. PPPTV was at- tended by 57 State Universities and 113 Vocational Education Organizing College Study Programs” (Interview, 15 March 2021). On the other hand, for the Course and Training entity, the main policies are Employment Skills Education (PKK) and En- trepreneurial Skills Education (PKW). Employment Skills Edu- cation (PKK) is an education and training service program that is oriented towards developing work skills in accordance with industrial needs, given to students so that they have competence in certain skill areas as evidenced by a certificate of competence to work and be absorbed in the industrial world, the business world, and other world of work (Education, 2021a). Meanwhile, Entrepreneurial Skills Education (PKW) is an 352 Vol. 12 No. 3 November 2021 353 educational service through courses and training to provide knowledge, skills and foster entrepreneurial mental attitudes in managing self-potential and the environment that can be used as provisions for entrepreneurship and pioneering the establishment of independent businesses guided by business partners (Educa- tion, 2021b). In terms of recipient category (public and private schools), the number of recipients of Vocational High School Center of Excellence (SMK CoE) is quite fair. This is because the gap be - tween Private Vocational High Schools and State Vocational High Schools is not too far away. There are 270 State Vocational High Schools, while Private Vocational High Schools are 221 schools. However, from perspective of quantity, the policy targets for the Vocational High School Center of Excellence (SMK CoE) are still very minimal. This is because only 491 Vocational High Schools are designated as SMK CoE out of a total of 14.379 Vo - cational High Schools, it is meaning that only 3,41% of Voca- tional High Schools who have been SMK CoE throughout Indo- nesia. Moreover, from the perspective of regional distribution, the Vocational High School Center of Excellence (SMK CoE) policy is still uneven. This premise is evidenced in the data below: TABLE 4. DISTRIBUTION OF VOCATIONAL HIGH SCHOOL CENTER OF EXCELLENCE (SMK COE) IN INDONESIA No. Islands Number of SMK CoE 1 Java 2.27% 2 Sumatra 0.50% 3 Borneo 0.25% 4 West Nusa Tenggara, East Nusa Tenggara, and Bali 0.20% 5 Celebes 0.14% 6 Papua and Maluku 0.05% Total 3.41% Source: Directorate of Vocational High School (2020) (Data Processed by Researchers) Based on the data above, it is explicitly seen that the Voca- tional High School Center of Excellence (SMK CoE) policy is still centered on Java with a percentage of 66,4%, the gap is so JURNAL STUDI PEMERINTAHAN far if compared to the regions with the lowest number (Papua and Maluku) which are only 1,6%. These data indicate that the SMK CoE policy is not yet fully optimized and still needs im- provements. Based on the results of online observations in YouTube application, on one occasion the Minister of Educa- tion, Culture, Research, and Technology also acknowledged that “there are still several problems that need to be resolved in the Vocational High School (SMK) entity. SMK is still difficult to answer the needs of the world of work, there are still various challenges that must be resolved after the SMK CoE policy, in- cluding: Opportunities to increase the competence of teachers, heads of Vocational High Schools, and supervisors of Vocational High Schools who in line with the needs of the world of work still a few, not all Vocational High Schools have facilities that meet standards, school management still tends to be burdened with administrative matters, not all Vocational High Schools have developed a curriculum with the world of work, the synergy of stakeholders (including the world of work) in the Vocational High Schools development program is still lacking” (Online observa- tion, 17 March 2021). GRAPH 3. INDICATORS OF VOCATIONAL HIGHER EDUCATION STRENGTHENING PROGRAM (PPPTV) Source: Directorate of Vocational and Professional Higher Education (2021) (Data Processed by Researchers) Meanwhile, for the main policies of Vocational Higher Edu- cation entity namely Vocational Higher Education Strengthen- ing Program (PPPTV), from the 6 policy indicators, all indica- 354 Vol. 12 No. 3 November 2021 355 tors increased significantly compared to before the Vocational Higher Education Strengthening Program (PPPTV). This is shown in the graph 3. However, there is a minor note from the policy evaluation of the Vocational Higher Education Strengthening Program (PPPTV), namely the low number of applicants who pass the early selection. As stated by the Director of Vocational and Pro - fession Higher Education “there were 255 proposals submitted, but at the early stage of selection (administrative selection) only 142 proposals passed. From this we can conclude that the under- standing toward guidebook is relatively low” (Interview, 06 March 2021). On the other hand, the main policies of Course and Training entity, namely Employment Skills Education (PKK) and Entre - preneurial Skills Education (PKW), from the aspect of achieving targets both of policies are relatively successful. This is because the PKK target is 50,000 recipients and PKW 16,000 recipients, while the realization of the two policies is able to exceed the target. As stated by the Director of Courses and Training “The Ministry of Education, Culture, Research and Technology has distributed PKK to 53.744 students and PKW assistance to 16.676 students throughout Indonesia” (Interview, 05 March 2021). This achievement is quite good, because the two policies were just launched last year. Based on the empirical data above, it can be analyzed that the evaluative elements in Vocational High School, namely the Vo- cational High School Center of Excellence (SMK CoE) are still not fully optimal. There are several critical notes that need to be paid attention by policy makers. For example, related to priority areas that only cover 5 fields (machinery and construction, cre- ative economy, hospitality, care services, and foreign coopera- tion). With a very large number of Vocational High Schools and fields which also very heterogeneous, the scope should be ex- panded, especially in the current pandemic conditions. Other fields such as: Health, finance, food and beverages, digi- JURNAL STUDI PEMERINTAHAN tal marketing, and other essential fields need to be considered to be included in the development of the School Center of Excel- lence (SMK CoE) program in the future. If the Vocational High School Center of Excellence (SMK CoE) program is to be con- tinued and developed, the target recipient needs to be increased to a minimum of 10% of the total Vocational High Schools throughout Indonesia. Also, the distribution of Vocational High School program recipients needs to be more equitable, not to be concentrated in one area only (such as in Java), so that the ben- efits can be felt equally by all eligible SMK throughout Indone - sia. Meanwhile, the evaluative elements in Vocational Higher Education, namely the Vocational Higher Education Strength- ening Program (PPPTV) in general can be said to be good, be- cause there are significant achievements of the indicators. How - ever, considering the fact that the number of applicants is still relatively small, and those who pass the outset stage (administra- tive selection) are also very few, a special strategy is needed if this policy is to be continued. For example, by increasing the inten- sity of socialization and increasing socialization media in various channels. Even (if necessary), the socialization event is always attended and filled directly by the Director General of Vocational Education and the Director of Vocational and Professional Higher Education. On the other hand, the evaluative elements in Vocational Higher Education, namely Employment Skills Education (PKK) and Entrepreneurial Skills Education (PKW), although in terms of achievement, they are able to exceed the target, but more ad- vanced measurements are needed regarding outcomes, even thei r impacts. For example, the measurement of whether or not the work capacity and entrepreneurship of program recipients have increased or not. Although from a financial perspective (possi- bly) it will require a big additional budget, but substantively this measurement will be able to better understand the utility of the policy/program. 356 Vol. 12 No. 3 November 2021 357 OPERATIONAL ELEMENTS The results of research observations showed that the Direc- torate General of Vocational Education of the Ministry of Edu- cation, Culture, Research, and Technology takes the third form, namely the persuasive mode uses an information strategy to con - vince target groups of the proposed objectives. Based on the re - sults of online observations in YouTube application, on one oc- casion the Minister of Education, Culture, Research, and Tech- nology said that “vocational education must link and match with industry or the world of work. Elements of link and match be- tween vocational and industry or the world of work include: 1) The curriculum comes from industrial partners; 2) Practitioners and lecturers come from industry; 3) Marriage certificate (recruit - ment agreement). The essence of the benefits of the link and match policy for the industry or the world of work is the effi- ciency of cost elements such as: saving on education and train- ing costs, time efficiency, and accelerating their business” (Online observation, 22 March 2021). The directive from the Minister of Education, Culture, Re- search, and Technology is internalized by the Director General of Vocational Education in all policies in vocational education entities which include Vocational High Schools, Vocational Higher Education, and Courses and Training Institutions to be persuaded to focus on aspects of link and match with industry and the world of work. As he stated that “Vocational education is a pillar of progress in any developed country. The main indica- tor is the link and match between vocational and industry and the world of work. The main policy of the Directorate General of Vocational Education is the link and match between Voca- tional High Schools, Vocational Higher Education, and Courses and Training Institutions with industry and the world of work” (Online observation, 22 March 2021). Furthermore, he even stated that the link and match concept consists of 8 + i packages and is a solution to reduce unemploy - ment: “The solution to reduce unemployment is the application JURNAL STUDI PEMERINTAHAN of 8 + i link and match packages” (Online observation, 22 March 2021). TABLE 5. THE CONCEPT OF 8 + I LINK AND MATCH PACKAGES No. Packages Points/Descriptions 1 1 The curriculum is prepared with the world of work (business and/or industry). 2 2 Real Project-Based Learning (PBL) from the world of work world of work (business and/or industry) to ensure hard skills will be accompanied by soft skills and strong characters. 3 3 Increasing the quantity of teachers/lecturers/instructors from experts in the work world of work (business and/or industry) to teach in vocational education entities at least 50 hours per semester per study program. 4 4 Internship or work practice for vocational students in the world of work (business and/or industry) minimum 1 semester. 5 5 Competency certification that is in line with the standards and needs of the world of work (business and/or industry) which is intended for graduates of vocational education as well as teachers/lecturers/instructors. 6 6 Teachers/lecturers/instructors regularly receive technology updates and training from the world of work (business and/or industry). 7 7 Applied research on vocational campuses that originates from real cases or needs in the world of work (business and/or industry) and society (as the basis for teaching industry and teaching factories) in collaboration with the world of work and stakeholders. 8 8 Commitment to absorption of vocational education graduates by the world of work (business and/or industry). 9 + i Various possibilities of cooperation that can be carried out with the world of work (especially industry), among others: scholarships and/or official ties, donations in the form of laboratory equipment, and others. Source: Processed Results from In-depth Interview (15 March 2021) From a concept perspective, the 8 + i link and match strate- gies or packages are quite ideal. This is because the points in the 8 + i link and match are fundamental and very much needed to be realized in every vocational education entity. However, be- cause the concept was initiated along with the inauguration of the Director General of Vocational Education in mid-2020, the impact of the concept has not been significant. The Director General of Vocational Education stated that “out of about 2,000 vocational campuses, 14,000 Vocational High Schools, 17,000 Course and Training Institutes, only about 20-30% have linked 358 Vol. 12 No. 3 November 2021 359 and matched with the world of work in various forms of link and match packages. For example, in Vocational High Schools every year the curriculum is synchronized with industry needs and sev- eral applied research on vocational campuses that have collabo- rated with the world of work (business and/or industry)” (Online observation, 22 March 2021). However, the 20-30% justification was doubted by the Deputy Chairman of the Indonesian Chamber of Commerce and In- dustry for Manpower Sector who stated that “the 20% percent- age that was said by the Director General of Vocational Educa- tion was link and match, in fact the link and match was not fully optimal. To realize link and match holistically, Indonesia can use Germany as the best example. In Germany, when a student is still in junior high school, he or she can already decide where to work and what profession they will be by choosing the rel- evant vocational school. For example, if you want to work at Mercedes, students just need to look for a vocational school that works with Mercedes, and look for what area of expertise they want (whether as mechanics, mechatronics, etc.). With a dura- tion of 3 years attending SMK with a proportion of 70% prac- tice, after passing without a test, you can immediately work at Mercedes. In Malaysia, it is the same, following the system in Germany, so that 80% of junior high school graduates choose to enter SMK because of better job opportunities. The indicator is that 80-90% of SMK graduates will be absorbed in the world of work. The rest (10%-20%) become entrepreneurs or continue their studies” (Online observation, 22 March 2021). Based on the empirical facts above, it can be analyzed that although in terms of the concept of operational elements which represented through 8 + i link and match is quite ideal, but the justification that vocational education entities consisting of Vo - cational High Schools, Vocational Higher Education, and Course and Training Institutions have 20-30% link and match with the world of work needs to be reviewed. The Directorate General of Vocational Education, Ministry of Education, Culture, Research, JURNAL STUDI PEMERINTAHAN and Technology needs to make an empirical study that can prove (periodically) the percentage of link and match achievement and the level of application of each link and match package in each vocational education entity. It would be better if the study was carried out in collaboration with the world of work (business and/or industry) so that objectivity could be more adequate. Meanwhile, as a form of transparency and accountability, the Directorate General of Vocational Education, Ministry of Edu- cation, Culture, Research, and Technology needs to publish the results to the public periodically. In addition, the Directorate General of Vocational Education periodically needs to conduct an open dialogue with policy implementers (Vocational High Schools, Vocational Higher Edu- cation, and Courses and Training Institutions) and the world of work (business and/or industry) to find out how they respond to the link and match 8+i package, what are the obstacles that oc- cur in the field in implementing the policy, and absorb input to improve the concept of 8+i link and match. If the mechanism can be implemented, the persuasive mode to convince target groups of the proposed objectives will be more deliberative be- cause the space for public discourse is wide open. FIGURE 2. ORGANIZATIONAL STRUCTURE OF THE DIRECTORATE GENERAL OF VOCATIONAL EDUCATION 360 Source: Regulation of the Minister of Education and Culture of the Republic of Indonesia Number 9 of 2020 (2020) Vol. 12 No. 3 November 2021 361 POLITICAL-ADMINISTRATIVE ARRANGEMENTS Based on the Regulation of the Minister of Education and Culture of the Republic of Indonesia Number 9 of 2020 con- cerning Amendments to the Regulation of the Minister of Edu- cation and Culture Number 45 of 2019 concerning the Organi- zation and Work Procedure of the Ministry of Education and Culture, organizational structure of the Directorate General of Vocational Education is illustrated in the figure 2. From the Figure 2, there is one Echelon I-level Official, namely the Director General of Vocational Education and five Echelon II - level Officials, namely: Secretary to the Director General of Vocational Education, Director of Vocational High Schools, Di- rector of Vocational and Professional Higher Education, Direc- tor of Courses and Training, and Director of Partnership and Alignment of Business and Industry. The figure above shows that vocational education entities which mainly include Voca- tional High Schools, Vocational and Professional Higher Educa - tion, and Courses and Training have been contained in a legal document in the form of a Ministerial Regulation. However, it would be great if there was one more Echelon II which focused on research and technology. This is because based on the President’s intention through Presidential Letter Num- ber R 14/Pres/03/2021 which was made on March 30, 2021, the duties and functions of the Ministry of Research and Tech- nology were combined with the Ministry of Education and Cul- ture, thus becoming the Ministry of Education, Culture, Research and Technology. The letter was also approved at the Meeting of the Deliberative Body of the House of Representatives of the Republic of Indonesia on April 8, 2021. Therefore, there needs to be adjustments in terms of organi- zational governance and substance, so that the research and tech - nology function can become a separate focus. This is expected to more help accelerate the 8 + i link and match strategy and pro- vide a great impetus for the Directorate General of Vocational Education to contribute optimally in integrating vocational edu- JURNAL STUDI PEMERINTAHAN cation graduates with the labor market in Indonesia. Meanwhile, based on the results of the performance and bud - get evaluation conducted at the end of 2020, the achievement of the budget performance of the Directorate General of Vocational Education in 2020 is not yet optimal. This is because the Budget Performance Evaluation (EKA) score of the Directorate General of Vocational Education only reached 63.96. This value makes the Directorate General of Vocational Education ranked second lowest in the Budget Performance Evaluation (EKA) measure- ment of a total of 10 main units under the Ministry of Educa- tion, Culture, Research, and Technology (Secretary General of the Ministry of Education, Culture, Research, 2020). Budget Performance Evaluation (EKA) is an instrument for monitoring and evaluating budget performance carried out by the Directorate General of Budget, Ministry of Finance, which consists of 4 indicators on implementation aspects, namely: Output Achievement, Consistency, Budget Absorption, and Ef - ficiency. This achievement of Budget Performance Evaluation (EKA) is relatively contradictory to the realization of budget ab - sorption in 2020. In terms of budget absorption in 2020, the Directorate General of Vocational Education is quite good. From the budget ceiling of IDR 6.62 trillion, around IDR 5.74 trillion was absorbed or equivalent to 86.65% (Secretary General of the Ministry of Education, Culture, Research, 2020). This indicates that the implementation of the budget alloca- tion by the Directorate General of Vocational Education is less effective. Four indicators of Budget Performance Evaluation (EKA) which consists of: Output Achievement, Consistency, Budget Absorption, and Efficiency have not been achieved opti - mally. Based on this fact, the Directorate General of Vocational Education needs to conduct an in-depth evaluation to analyze the causes of the low Budget Performance Evaluation (EKA) score. The low EKA score indicates the low utility of the policy/pro- gram, even though the absorption of the budget is high. Meanwhile, the projected budget ceiling for the Directorate 362 Vol. 12 No. 3 November 2021 363 General of Vocational Education in 2021 is IDR 7.41 trillion. This amount increased by approximately IDR 790 billion if com- pared to the budget in 2020 (IDR 6.62 trillion). In terms of the feasibility of financial resources, this amount is very adequate. However, the results of the 2020 Budget Performance Evalua- tion (EKA) must be a special note for improving the effective- ness of budget allocations in 2021, so that the results of policies and programs do not only reach the output level, but can also achieve outcomes, even the impact of significant positive changes. Referring to the importance of political-administrative arrange- ments, as well as the severity of the challenges in carrying them out, close collaboration with various parties is required. With the Ministry of Finance, for example, it is necessary to have a complete and good understanding in terms of budget allocation in every policy or program carried out by all policy or program implementers. With the Ministry of Manpower, there needs to be collabora- tion in precise mapping of the projected workforce needs of vo - cational education graduates and their placement in any sectors. In addition, cooperation with local governments (both at the provincial, district/city levels) also plays a crucial role, especially in the framework of decentralization, where regional leaders have autonomy and become one of the determinants of the success of the administration of government affairs (Rahman, Sahar, Putra, & Diliawan, 2018), including education field. PROCEDURAL ELEMENTS Indonesia’s main policies in terms of employment are con- tained in the Law of the Republic of Indonesia Number 11 of 2020 concerning Job Creation. There are four points of objec- tives in the Law which include: a) creating and increasing em- ployment opportunities by providing convenience, protection, and empowerment for Cooperatives and Micro, Small and Me- dium Enterprises (UMKM) as well as national industry and trade as an effort to absorb the widest possible number of Indonesian JURNAL STUDI PEMERINTAHAN workers while still taking into account the balance and progress between regions within the national economic unit; b) ensure that every citizen gets a job, and gets fair and proper remuneration and treatment in an employment relationship; c) make adjustments to various regulatory aspects relating to align - ments, strengthening, and protection for Cooperatives and Mi- cro, Small and Medium Enterprises (UMKM) as well as national industries; and d) make adjustments to various regulatory aspects related to improving the investment ecosystem, facilitating and accelerating national strategic projects oriented to national in- terests based on national science and technology with guided by the ideology of Pancasila (Goverment of Indonesia, 2020). The scope of this law is very broad, because it does not only cover the regulation of the labor sector, but also other strategic areas such as: Central Government investment and acceleration of national strategic projects, the protection and empowermentof Cooperatives and Micro, Small and Medium Enterprises (UMKM), the field of ease of doing business, the field of research and innovation, and even the land sector. Therefore, this Law is also often referred as the “Omnibus Law”. In terms of the objectives this Law at first glance looks ideal, however there are some fragility of substance in the clauses in it. Also, although in terms of the scope of this law, it is very broad because it covers many fields (as described above), but because this research is limited in the labor area, the discussion and analy- sis in this sub-discussion will be focused on the labor area issues in this law. First, the issue of a Specific Time Work Agreement (PKWT). One of the crucial things that was changed in the Job Creation Law in the Employment Chapter is the provision re- garding the period of a Specific Time Work Agreement (PKWT). The Job Creation Law abolished the PKWT time limit provi- sions previously regulated in Article 59 of the Manpower Law. The previous Employment Law (in Article 59 Paragraph 1) stipu- lates that: A specific time work agreement can only be made for certain jobs which according to the type and nature or activities 364 Vol. 12 No. 3 November 2021 365 of the work will be completed within a certain time, namely: a) work that is once completed or temporary in nature; b) work which is estimated to be completed in a not too long time and a maximum of 3 (three) years; c) seasonal work; or d) work related to new products, new activities, or additional products that are still under trial or exploration (Goverment of Indonesia, 2003). This article is amended in the new Job Creation Law become: A specific time work agreement can only be made for certain jobs which according to the type and nature or activities of the work will be completed within a certain time, namely: a) work that is once completed or temporary in nature; b) work which is estimated to be completed in a not too long time; c) seasonal work; d) work related to new products, new activities, or addi- tional products that are still under trial or exploration; or e) work whose type and nature or activities are not permanent (Goverment of Indonesia, 2020). The change in letter b which removes the restriction on the category of “a maximum of 3 (three) years” correlates with the disappearance of paragraph (4) in Article 59 which stipulates that “A specific time work agreement based on a certain period of time can be held for a maximum of 2 (two) years and may only be extended 1 (one) time for a maximum period of 1 (one) year. Furthermore, the new Job Creation Law also abolishes the provi- sion that a PKWT which has passed a maximum period of 2 years plus 1 year, is legally turned into a work agreement for an indefinite period (permanent employment agreement). The implications of missing these verses are serious. In addi - tion to eliminating the maximum period and limitation on ex- tension, this new provision also eliminates the opportunity for workers to change their status from contract workers to perma- nent workers. In fact, the position of workers in contract work status is much more vulnerable than that of permanent workers. This is (in the end) does not encourage an increase in the ab- sorption of vocational education graduates (and even academic graduates as well) in the labor market, but instead becomes a JURNAL STUDI PEMERINTAHAN great potential to increase the number of unemployed in Indo- nesia. Second, the issue of a Work Termination (PHK). Philosophi- cally, work termination in the conception of industrial relations Pancasila is something that is highly avoided. Thus, it is natural that the work termination arrangements in the previous Employ - ment Law were made very rigid to prevent work termination as much as possible. One of the rigidity of this work termination rule can be seen in Article 151 paragraph (2) of the previous Employment Law which states: In the event that every effort has been made, but termination of employment is unavoidable, then the intention of terminating the employment relationship must be negotiated by the entrepreneur and the trade union/labor union or with the worker/laborer if the worker/laborer concerned is not a member of the trade union/labor union. Furthermore, still in the context of Law Number 23 of 2003, Article 151 paragraph (3): In the event that the negotiations as referred to paragraph (2) really do not result in an agreement, the entrepreneur can only terminate the employment relation- ship with the worker/laborer after obtaining determination from the industrial relations dispute settlement agency. These two paragraphs are an effort to protect so that work termination are not carried out unilaterally. According to this provision (Law Number 23 of 2003), every form of work termination must be negotiated by both parties, and if there is no agreement, the work termination can only occur after obtaining a determination from the industrial relations dispute settlement institution. The determination of this industrial relations dispute settle- ment institution is also a form of the state’s presence in seeking so that work termination not harm one party. This conception changed drastically in the new Job Creation Law (Law of the Republic of Indonesia Number 11 of 2020). Article 151 para- graph (2) changes to: “In the event that termination of employ- ment is unavoidable, the purpose and reason for the termina- tion of employment shall be notified by the entrepreneur to the 366 Vol. 12 No. 3 November 2021 367 worker/laborer and/or the trade union/labor union”. This paragraph raises concerns about the possibility of unilat- eral work termination because work termination can only be car - ried out through notification from the entrepreneur without having to be preceded by prior negotiations. With these empiri- cal facts, this will put workers in a weak position because the work termination procedure becomes easier, this condition in- creases the chances of unemployment (especially during the cur - rent pandemic). CONCLUSION The output of education graduates at the secondary and higher education levels is usually choosing to work, become an entre- preneur, or continue their studies. In the Indonesian context, working is still the main choice for graduates of higher educa- tion and graduates of secondary schools in the vocational realm. Therefore, the formulation of policies in integrating educational graduates with the world of work is crucial, especially in reduc - ing unemployment. As stated at the beginning of the study, that the objective of this research is to analyze how the policy formu - lation in integrating vocational education graduates with the la- bor market in Indonesia. By using an analytical knife of the policy formulation formulated by Knoepfel (2011) in the framework Political Administrative Program (PAP) which consists of the fol - lowing elements: concrete objectives, evaluative elements, opera - tional elements, political-administrative arrangements, and pro- cedural elements, then it can be concluded that the policy for- mulation in integrating vocational education graduates with the labor market in Indonesia is not fully optimal. It is because despite there are some positive and already good aspects, such as: fair proportions between Private Vocational High Schools and State Vocational High Schools in the Vocational High School Center of Excellence program (SMK CoE), the achievement of targets in the Employment Skills Education (PKK) and Entrepreneurial Skills Education (PKW) priority programs, JURNAL STUDI PEMERINTAHAN and the strategic conception that is quite ideal within the 8 + i link and match framework, but there are some weaknesses that become critical notes such as: far gap between the projected pro - portion of job opportunities per year with the number of gradu- ates in vocational education and training, lack of relevance of projections between Strategic Objective Performance Indicators (IKSS) and Program Performance Indicators (IKP) in the realm of courses and training, low projection target of increasing Pro- gram Performance Indicators (IKP) per year until 2024, recipi- ents of the Vocational High School Center of Excellence (SMK CoE) program which is still centralized on the Java island, syn - ergy of stakeholders (including the world of work) in the Voca- tional High Schools development program is still lacking, there is no Echelon II which is focused on research and technology in the organizational structure of the Directorate General of Voca- tional Education, low score of Budget Performance Evaluation (EKA), and fragility of the substance of employment in Law of the Republic of Indonesia Number 11 of 2020. 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