Terms of Reference ILO Implementation Agreement: International Academic Collaboration to support Curriculum Development and Capacity Building in the field of Shipbuilding Engineering with the Shipbuilding Institute of Polytechnic Surabaya (PPNS) Prepared: December 2020 By: Dyah Retno Sudarto I. BACKGROUND National prosperity and poverty reduction depend on a country’s citizens being employed and productive. However, education and vocational training systems in many middle-income countries are failing to deliver the skills needed to support sustained growth, holding down productivity and labour market participation in skilled jobs. The UK Skills for Prosperity Programme works with a select number of countries to tackle the skills deficit among its citizens, resulting in increased local prosperity and living standards, including a reduction in levels of poverty and gender inequality, together with creating mutually beneficial two-way trade opportunities. The programme sets out opportunities to promote inclusive economic growth and increase global prosperity through targeted interventions to improve technical-vocational training and higher education systems in nine countries (Brazil, Egypt, Indonesia, Kenya, Malaysia, Mexico, Nigeria, Philippines and South Africa). The International Labour Organization (ILO) has been selected as the implementation partner to deliver the cluster of three projects in South East Asia: Indonesia, Malaysia and The Philippines For Indonesia, the last two decades have witnessed an exceptional economic growth and seen more than half of the population rising out of poverty. The nation’s ambitions are set on continuing the growth trajectory to becoming a high-income country by 2045. However, despite the positive profile at national level, systemic weaknesses and inequalities persist. Even before the Covid 19 crisis, more than one in five young people were unemployed, and most workers are informally employed, in short term contracts and/or are paid below the minimum wage1. Despite rising participation in vocational education in recent years, the lack of alignment with employer needs has led to a mismatch of skills and higher levels of unemployment among vocational graduates than is experienced by students graduating from either university or general high school. The pandemic has exacerbated inequalities, and with a disproportionate impact on youth, women, lower income households and marginalised groups. In this context, the Skills for Prosperity Project in Indonesia sets out to improve skills development policies and systems to respond effectively to the skills demands with a focus on the growing maritime sector; taking targeted action in promoting skills for employment and decent jobs for young women and men, including disadvantaged groups. As an island nation, the maritime sector has a critical bearing on Indonesia’s economic performance, and has been identified as a priority sector by government in the Global Maritime Fulcrum master plan in 2014. The maritime sector also been selected as a focus for this project due to the UK’s expertise and reputation in this field. 1 OECD, 2020. Employment and Skills Strategies in Indonesia 1 The project has been designed by the ILO with the objective of improving the equity, quality, relevance and cost-effectiveness of the skills system in this sector through partnerships and interventions supporting the development of centres of excellence through four polytechnic partners. Each polytechnic is based in a different province and specialise in a different subsector of the maritime industry as follows: Location Batam, Manado, Semarang, Surabaya, Kepulauan Riau North Sulawesi Central Java East Java Polytechnic Polibatam Polimanado Polimarin PPNS Industry Subsector Global Supply International Seafaring / Ship building and Chain and Logistics Tourism Engineering maintenance For each polytechnic, an international academic partner will support curriculum development and institutional capacity building, in co-ordination with ILO staff, to improve the quality and relevance of the programme for the benefit of both students and industry. This partnership will support the overall Skills for Prosperity Indonesia outcomes of: - Stimulating a sustained increase in the enrolment, graduation rate and progression to decent work outcomes for students including marginalized groups - Increasing employer interaction with the polytechnic, including curriculum inputs and apprenticeship / industrial placement co-operation with a view to improving student progression to decent employment opportunities - Delivery of pilot initiatives providing a robust evidence base leading to recommendations that can be taken forward through national and provincial policy formulation to create longer-term impacts for Indonesia’s Vocational system.. The Skills for Prosperity Project in Indonesia is endorsed under the Memorandum of Understanding in the field of Education between UK Government and the Indonesian Ministry for Education and Culture. The Project is implemented by the International Labour Organization (ILO) Country Office Jakarta for Indonesia & Timor Leste. About the ILO The International Labour Organization (ILO) was established in 1919 and brings together 187 member States to set labour standards, develop policies and devise programmes promoting decent work. It is the agency within the United Nations family with the mandate for the development of skills policies and systems, with an inclusive approach to building competencies for the jobs of the future. The ILO currently delivers over 600 projects in more than 100 countries worldwide with the support of 120 development partners. The Skills for Prosperity Programme in South East Asia takes a regional approach to the delivery of the three national projects in Malaysia, Indonesia and The Philippines. Overview of Polytechnic Partner Politeknik Perkapalan Negeri Surabaya (PPNS) –Shipbuilding Institute of Polytsechnic Surabaya (SHIPS) is a state polytechnic that is focused on ship manufacturing and it’s supporting technology in Indonesia. PPNS established in 1986 through Joint Agreement Program supported by the World Bank in 1986. However, the embryo of PPNS has actually began in 1979 under non-degree program of shipbuilding in the Institut Teknologi 2 Surabaya (ITS). In 2019, the number of active students in PPNS was 2779 students spread across 14 study programs. The 14 study programs (in D3 and D4) are managed through three Departments, namely Ship Building Engineering, Marine Engineering and Ship Electrical Engineering. The quality of PPNS graduates is quite good with an average GPA of 3.41 (Scale 4) and the average waiting time to get a job is 3 months. Website: www.ppns.ac.id (Bahasa Indonesia), http://ships.ppns.ac.id/ (English) PPNS established in 1986 through Joint Agreement Program supported by the World Bank in 1986. However, the embryo of PPNS has actually began in 1979 under non-degree program of shipbuilding in the Institut Teknologi Surabaya (ITS). The Shipbuilding Engineering study program (D3) which the project will support is under Department of Teknik Bangunan Kapal/TBK (Shipbuilding). Number of students in this Study Program is 45 (Male: 22, Female 13. Data 2019, accumulated). PPNS is planning to have the development of D4 program for the Shipbuilding Engineering study program, to anticipate and comply with the Government policy in development of vocational-based higher education, which encouraged the establishment of study programs to Diploma 4 or Applied S1. Others study programs in PPNS (both for D3 and D4) are: 1) Occupational Safety and Health (OSH) Engineering; 2) Design and Manufacture Engineering; 3) Ship Design and Construction Engineering; 4) Welding Engineering; 5) Piping Engineering; 6) Marine Engineering; 7) Automation Engineering; 8) Marine Electrical Engineering; 9) Business Management, 10) Waste Treatment Engineering. The fortitude of Shipbuilding Institute of Polytechnic Surabaya (PPNS) as a vocational tertiary institution engaged in maritime technology to become part of the Indonesian nation in the development of human resources and maritime technology is confidently reflected in the PPNS Mission as follows: 1. Implementing vocational education and applied research programs in the field of maritime technology, maritime support technology, and occupational safety & health techniques; 2. Participating in community activities actively and productively, to develop maritime technology, maritime support technology, and occupational safety and health techniques; 3. Building a quality academic community that is able to compete globally; 4. Forming networks with the maritime industry sector and various related institutions to realize a comprehensive education system; 5. Integrating personality development in the learning process and / or extra-curricular activities to increase faith and piety in God Almighty and moral magnificence. The paradigm change in the implementation of vocational education programs, where the implementation of vocational programs is more emphasized on improving the quality and competence of graduates in line with industry needs, needs to be anticipated immediately by PPNS. The application of the Teaching Factory learning concept, which is production-based learning and the Dual System concept, namely the implementation of industrial apprenticeship that lasts for two full semesters in Industry, are two national government policies that must be immediately prepared and implemented by PPNS. By implementing