senior secondary school in indonesia - world...

6/21/2010

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Senior Secondary School in Indonesia

March 15th, 2010

Regional Conference on Benchmarking Education Systems for Results

Bangkok, Thailand

Roadmap

I. The Role of Senior Secondary Education

II. Measuring Senior Secondary Education Performance

a) Cognitive skills

b) Labor market outcomes

III. Tracking general (SMU) vs vocational (SMK)

a) Enrollment trends by track

b) Vocational curriculum

c) Labor market outcomes / employers’ perception

IV. Challenges

Increasing access to secondary

Improving skill formation

Improving the skill base

Improving the quality of teaching/learning in both tracks

Improving the relevance

Improving links with higher education

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Roadmap



a) Cognitive skills






IV. Challenges







The Role of Senior Secondary Education

Secondary education builds on the skills learned in basic education

and serves two main purposes:

a) Preparing students for higher education by increasing cognitive skills

The general track is designed mainly for this purpose

But the vocational track should also prepare students for further studies (17%

of vocational school graduates continue to higher education)

b) Providing mid-level skills for the labor market

The vocational track is geared to this purpose

But many general school graduates (60%) do not continue to higher education

Measuring the performance of the senior secondary school system

should consider both objectives

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The Role of Senior Secondary Education

While performance should measure both outcomes (cognitive and labor market), these are not only the competency of the formal education system Cognitive skills are built up overtime and depend not only on the education system, but

socioeconomic characteristics

Early grades are the most important, as learning deficits build up overtime

Learning deficits carried over cannot be compensated entirely in the secondary level

Education influences labor supply but outcomes depend also on the demand (macroeconomic trends/job creation/labor regulations)

The education system can prepare students for the labor market by providing a strong skill base

But job-specific skills are a shared responsibility

The education system cannot provide the specific skills required for all occupations

The education system can work together with firms to offer stronger linkages to improve the relevance of skills provided by the education system

But firms benefit from job-specific skills and as a consequence should bear at least part of the cost

It is important to delimit the responsibilities of senior secondary education to target policies more effectively and ensure effective linkages with labor market demands, but firms need to play a larger role in job-specific training

Roadmap



a) Cognitive skills






IV. Challenges







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Attainment is increasing (44% of 21-25 year olds who started primary school finish senior secondary school vs. only 33% of older generations)

But despite improvements in the younger generation, early drop-out is still a challenge (only 49% of students who start primary reach senior secondary school)

Regional comparisons show Indonesia with among the highest enrollment rates in primary education, but falling behind in higher levels (especially tertiary)

0 50 100 150

Tertiary

Senior Secondary

Junior Secondary

Primary

Gross Enrollment Rate (2006)

China

Thailand

Mongolia

Malaysia

Philippines

Vietnam

Cambodia

Lao PDR

Indonesia

Source: Susenas (2008)

Measuring coverage

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Starting Primary

Finish Primary

Starting JSS

Finish JSS Starting SSS

Finish SSS

21-25

31-35

41-45

In addition to improvements in attainment, PISA results show that cognitive skills

have improved in recent years

But 15 year old Indonesian students still perform far from OECD (average 500)

There are important inequalities in cognitive skills by socioeconomic characteristics

The biggest gains in scores since 2000 are in the richest deciles

320

340

360

380

400

420

440

460

1 2 3 4 5 6 7 8 9 10

PIS

A S

co

re

Socioeconomic decile

Reading 2000 Reading 2003 Reading 2006

Reading

320

340

360

380

400

420

440

460

1 2 3 4 5 6 7 8 9 10

PIS

A S

co

re

Socioeconomic decile

Math 2000 Math 2003 Math 2006

Math

Measuring cognitive skills

Source: PISA 2000-2006

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In part it is readiness for senior secondary school resulting from previous cycles

Results in TIMSS (8th grade, math) also show that there is big room for improvement

on cognitive skills

The percentage below basic is 52%

100

80

60

40

20

0

20

40

60

80

100

Advanced

High

Intermediate

Below basic

Basic

Measuring cognitive skills

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59

Primary Junior Secondary

Senior Secondary Tertiary

In terms of labor market outcomes, youth unemployment rate is very high

Secondary school graduates face an especially high initial unemployment

In terms of quality of employment, only about 50 % of senior secondary graduates are

in salaried jobs, better for the younger generation (60%)

The share of salaried employees is the highest for tertiary education (85%)

Unemployment Rate Share of salaried employees

Measuring labor market outcomes

Source: Sakernas (2007) Source: Sakernas (2008)

0

0.1

0.2

0.3

0.4

0.5

0.6

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59


Senior Secondary Tertiary

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The average time to find a job is 5 months for senior secondary graduates (slow transition)

The returns to education are high especially for senior secondary and tertiary education

The returns are generally sustained in the last decade, but the returns have declined since

2001

Measuring labor market outcomes

Source: Moeliodihardjo, Bagyo and al. (2008):

Higher Education Sector Assessment, 2008.

Average number of months to find a job

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Primary Junior Sec./primary

Senior Sec./ primary

Tertiary/primaryW

age

rat

io v

s p

rim

ary

ed

uca

tio

n

1994 2001 2007

Returns to education

Source: Sakernas, various years

Roadmap



a) Cognitive skills






IV. Challenges







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Tracking begins in senior secondary education (at 9 years of schooling)

General track (SMA) has been 65-80% of enrollment in the past

Big push for vocational schooling since 2006 (48 % of enrollment in 2009)

Enrollment trends by track

Source: Ministry of National Education, (MoNE)

34%

36%

38%

40%

42%

44%

46%

48%

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Share of enrollment in Vocational Track Total Enrollment by Track

VET School in Indonesia

The push for VET sought to improve employability by balancing the skills of

recent graduates

Types of vocational school (6,025 total, 78% private):

Business and Management (SMEA), 47 percent of schools

Technical and Industry (STM), 39 percent

A small percentage in specific industries: Agriculture and Forestry; Community

Welfare; Tourism; Arts and Handicraft; Health and Marine.

Program Public Private Total Each Program as

Percentage of total

Business & Management 600 2415 3015 47%

Technology & Industry 534 1991 2525 39%

Tourism 121 274 395 6.10%

Agriculture & Forestry 110 90 200 3.10%

Community Welfare 39 65 104 1.60%

Art & Handicraft 52 32 84 1.30%

Marine 27 39 66 1%

Health 0 33 33 0.50%

Total 1483 4939 6422 100%

Number of Vocational and Technical Schools

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Student characteristics:

Vocational school is still considered a second option by many (ratio of applicants to entrants is much higher for general track)

Vocational school currently serves students with worse academic qualifications

Vocational school serves a poorer segment of the population

0 20 40 60 80 100

Public SMA

Public SMK

Private SMA

Private SMK

Percent

Share of SMA and SMK Students by Consumption Quintiles

Poorest 20% Middle 60% Richest 20%

Student characteristics

Source: MoNE

1

1.1

1.2

1.3

1.4

1.5

1.6

4.5

4.7

4.9

5.1

5.3

5.5

5.7

5.9

General Vocational General Vocational

Public Private

Rati

o o

f ap

plican

ts t

o E

ntr

an

ts

Avera

ge E

BT

AN

AS

Sco

re

Math

Ratio Aplicants/entrants

The out-of-pocket cost is higher for the vocational than for the general track

The out-of-pocket cost of attendance has increased significantly in recent years,

especially for vocational and for higher education

Public SMK has the highest operational unit cost, but it is not much higher than

public SMA. Private SMA and private SMK also have similar unit cost

The higher out-of-pocket cost of vocational school is due to the higher

percentage of private schools

Cost of attendance

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000


Senior Secondary:

General

Senior Secondary: Vocational

Higher EducationA

nn

ual O

ut-

of-

Po

cket

Co

st (

no

min

al

Rp

)

2006

2003

Source: Susenas 2003, 2006 education modules Source: IFLS (2007)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

u_other u_donation u_committee u_routine

u_bop u_grant u_bos

Out-of-pocket expenditures Unit cost

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Labor market outcomes by track

The unemployment rate of graduates of both tracks is similar

Traditionally vocational school has been better at facilitating entry into the

labor market, but the differences have disappeared in recent years

The wage premium was also higher for SMK, but both have converged

The vocational school is no longer better than the general track at facilitating

labor market entry

57

91

11

31

51

71

92

1

Une

mplo

ym

ent R

ate

(%

)

19911992

19931994

19951996

19971998

19992000

20012002

20032004

20052006

2007

Year

SMA SMK

0

0.2

0.4

0.6

0.8

1

1.2

1994 1997 1999 2001 2003 2005 2007

High school general/

primary

High school

vocational/ primary

Tertiary/primary

Unemployment rate Skill premium

Source: Sakernas, various years, Di Gropello (2009),

Source: Sakernas, various years

Roadmap



a) Cognitive skills






IV. Challenges







6/21/2010

10

Still too few students reach senior secondary education, especially from poor

backgrounds and from rural areas

Improving the efficiency of the system in earlier grades is fundamental to making

secondary education more effective

Guarantee enough supply of good quality schools and evaluate possible ways to

support demand (scholarships)

9.9%17.1%

22.6%33.2%

43.8%

7.5%

12.8%

16.8%

24.0%

31.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Poorest Quintile 2 Quintile 3 Quintile 4 RichestPublic Private

Gross Enrollment Rates by Consumption Quintile

Source: World Bank, Susenas (2007)

Gross Enrollment Rates Urban / Rural

66.3%

40.1%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Urban Rural

Source: World Bank, Susenas (2007)


The role of the senior secondary education needs to be defined and the linkages

with the broader context strengthened

Secondary Education curriculum can provide:

Academic skills (subject-matter) are the most obvious competency of the education system

Generic skills (problem-solving or thinking skills, communication skills, team work), recent

evidence from World Bank Employer Skills Survey indicate that these are valued by employees

and the curriculum should reflect these preferences

But other skills need complementary actions/policies

Soft skills (conduct or behavior) are largely the result of previous experiences and

socioeconomic characteristics. Secondary education can partly compensate for these, but the

interventions need to occur earlier

Technical skills (occupation specific)

Transferable skills (entrepeneurship, common processes) should be part of the curriculum

Non-transferable skills are better acquired through job-specific training and job experience

and should be the competency of employers, but should have strong linkages with the formal

education sector to explore synergies


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Given the increased dynamism of the demands in the labor market, workers need more

adaptable skills instead of narrowly focused skills to facilitate life-long learning

Implications for the formal education sector:

Clear demand for basic academic skills (math and literacy) but the skill gap is more clear in generic skills

(“thinking skills”) and soft skills (“behavioral skills”)

Stronger base of thinking skills and theoretical knowledge is needed for senior secondary school graduates

Technical Skills that can be met by education sector (computer and English) should be strengthened

Curriculum should include more basic (math and literacy) and general skills in both tracks

Increase time of instruction in math and literacy in SMK

0

0.1

0.2

0.3

0.4

0.5

0.6

Basic skills Thinking skills Theoretical knowledge

Practical knowledge

Experience in same field

Skills rated as “very important” by employers

Improving the quality of both tracks

Quality of learning/teaching matters in both tracks

Graduates of both tracks feel it needs to be improved

Graduates of SMK are more concerned than graduates of SMA about the

quality of learning/teaching and quality of facilities

Some evidence that SMA graduates who do not continue to higher education

feel the general track should be more relevant for the labor market

Perception of graduates of each track of the main weaknesses

Source: World Bank Employers Skills Survey (2008)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Quality of learning/teaching Facilities Curriculum Relevance

General (SMA) Vocational (SMK)

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Employers care more about actual knowledge and experience than about the

type of degree

General track is designed for further skills acquisition in higher education, but

many students do not continue. Increasing transition is part of improving its

relevance but there are also indications that more generic skills

(thinking/problem solving) may improve its relevance

Vocational track needs to also include more basic and generic skills, in order to

be create more adaptable graduates and it should also have stronger

connection of with the private sector and local governments to identify

present and future demands

But practical training is expensive to provide outside the firm, and firms

benefit from the results of the training so firms should contribute to the

financing


Returns to higher education are very high but the transition of senior secondary to

higher education is low for both tracks

Vocational school students are from lower socioeconomic strata, and they are in turn

much less likely to continue to higher education

This results in very low participation of population from lower income in higher ed

Facilitating the transition to higher education is important and can be achieved by

linking formally vocational school to polytechnics (diplomas) and also university

Demand side (scholarships) financing might be necessary to improve transition

0.35% 1.06%2.35% 6.06%

22.53%

0.75% 1.66% 3.29%

12.19%

38.89%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

poorest Q2 Q3 Q4 wealthiest

Private Public

Gross Enrollment Rate, Higher Education

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Measuring the performance of secondary school needs to take into account both cognitive

skills and labor market performance of graduates

The role of senior secondary education cannot be providing all the general and practical skills

demanded in the labor market, but it should provide strong basic and generic skills that

are in high demand and that can serve as a strong base for life-long learning

Tracking can work. Vocational school can be an effective option to provide mid-level skills,

but the quality and relevance of vocational school needs to be addressed

The acquisition of skills is multi-faceted and firms should take a more active role in

developing relevant practical skills that benefit them, by financing non-formal training and

providing on-the-job training (internships)

Coverage and quality of both tracks need to improve. Quality should be emphasized as

enrollments increase, and new policies need to be in place to improve efficiency and

equity (scholarships)

Higher education linkages. Transition rates from the general track are still low. There is also

a need to improve linkages of the vocational track to reduce inequality in access to higher

education. Vocational school need not be the final cycle

In summary

Thank you!

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An attempt to map skill formation: what should be learned when, and where should it be

learned and who should pay for it?

Group of

skills

Type of skills Where to acquire When to acquire Who benefits

besides

individuals

Who should

invest besides

individualsChildhood

(0-15)

Youth

(16-24)

Before

work

Youth

(16-24)

During

work

Adult

(25+)

General

skills/

life skills

A1. Cognitive:

literacy,

numeracy,

analytical and

critical thinking

School X X societyGovernment

(externalities)

A2. Non-

cognitive skills:

social and

communication

School? Family?

Social/work

environment

X X X X Society; Firm? ?

Vocational/

labor

market

skills

B1. Transferrable:

computer,

management

School; training

institute; work

experience

X X X Firm

Firm; but it has

“free-rider”

problem. “training

levy” can be tried

B2. Non-

transferrable: firm

or trade-specific

Specific vocational

school; training

institute; work

experience;

apprenticeship

X X FirmFirm; no free-rider

problem

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