Opportunities for Norwegian Education and Training Providers in Indonesia

Indonesia is undertaking rapid reforms in its education and skills development ecosystem to meet the demands of a modern, globally competitive workforce. As one of the world’s most populous nations, the country faces growing pressure to expand access to quality education, strengthen vocational training, and enhance research collaboration. These efforts are central to Indonesia’s broader push for sustainable growth and industrial transformation.

This evolving landscape presents a timely opportunity for international engagement, particularly with countries like Norway. With deep expertise in areas like marine sciences, digital learning, and applied sustainability, Norway is well equipped to support Indonesia’s evolving priorities. Its experience in digital and distance learning is especially valuable in helping Indonesia expand access to education across its vast archipelago.

Collaborations focused on vocational training, climate-related education, and maritime industries can accelerate Indonesia’s workforce readiness while also fostering deeper institutional ties between the two countries.

Norway’s strength in education and innovation

Norway’s education system is globally recognized for its quality, accessibility, and strong public investment, amounting to around 6.6 percent of GDP, well above the OECD average. Nearly half of all Norwegian adults hold tertiary degrees, and many universities offer English-language programs, encouraging international exchange.

The country also ranks 19th on the Global Innovation Index 2023, with strengths in climate science, renewable energy, marine research, and digital governance. These areas of excellence reflect a broader national commitment to interdisciplinary innovation, making Norway an ideal partner for long-term cooperation with Indonesia.

By linking Norwegian innovation with Indonesia’s education reform agenda, both countries stand to benefit: Indonesia gains access to world-class expertise, while Norway strengthens its footprint in a fast-growing region with shared sustainability goals

Unpacking the education and skills landscape in Indonesia

Indonesia’s vast and growing population presents both challenges and opportunities in education and workforce development. While access to education has broadened, there are still gaps in learning outcomes and alignment with labor market needs.

Only 13.1 percent of adults aged 25–64 in Indonesia have completed tertiary education, and 57.3 percent have not completed upper secondary education, according to the OECD. These figures highlight the need to strengthen the higher education pipeline and improve secondary retention.

In response, the Indonesian government allocated USD 38.02 billion (around 3.5 percent of GDP) to education in 2023. Though this marks a major commitment, it still lags the OECD average, suggesting room for further investment.

A key focus is technical and vocational education and training (TVET). With over 14,000 vocational schools, 172 polytechnics, 279 vocational training centers (BLKs), and over 1,000 private academies, Indonesia is prioritizing skill development in areas like manufacturing, infrastructure, and digital services. However, only 44.5 percent of youth aged 15–24 are currently engaged in education and training, underlining the urgency to expand and modernize access to in-demand skills.

As Indonesia scales its education and training efforts, the country is open to international partnerships, particularly with nations that bring strengths in sustainability, digital innovation, and interdisciplinary learning.

Key avenues for deeper collaboration

Norwegian institutions already maintain academic and research ties with Indonesian universities through postgraduate exchanges and capacity-building projects, particularly in environmental sciences, marine technology, and public policy. Programs like Erasmus+ and NORHED have supported collaboration in marine biology, climate resilience, and sustainable development.

In parallel, Norwegian companies in Indonesia’s aquaculture, renewable energy, and maritime sectors offer a natural platform for education-industry integration. These academic and commercial linkages now position Norway to support Indonesia’s urgent workforce needs in vocational training, green skills, and digital learning, especially as the country advances its education reform roadmap.

Below are key avenues for advancing cooperation, grounded in national demand, sector-specific needs, and Norway’s unique expertise.

Strengthening technical and vocational training in priority sectors

Indonesia’s TVET sector is a cornerstone of its labor strategy. Yet fewer than 20 percent of vocational teachers hold industry-recognized certifications, and many schools lack up-to-date curricula aligned with 21st-century demands.

Norwegian institutions with expertise in aquaculture, maritime operations, and offshore energy can directly support capacity-building efforts. For example, Norway could replicate elements of its cooperation model with African maritime training institutes, focusing on trainer certification, curriculum co-development, and short-term credentialing programs in partnership with Indonesia’s BLKs (Balai Latihan Kerja) and vocational high schools.

Joint degree and stackable credential programs in sustainability and the ocean economy

Indonesian universities are under pressure to internationalize, especially in fields tied to the “blue economy” and climate resilience. Norwegian universities such as NTNU or NHH could co-develop joint or dual-degree programs in areas like marine engineering, carbon accounting, or sustainable fisheries management. These can be delivered in modular formats with stackable credentials, allowing for flexible learning among working professionals.

Piloting hybrid and remote learning models for eastern Indonesia

Eastern provinces like Papua, Maluku, and East Nusa Tenggara have internet penetration rates below the national average, yet they host key economic zones for fisheries and renewable energy.

Norwegian EdTech providers, including those with experience in asynchronous platforms, AI-based assessment tools, or immersive training simulations, can pilot solutions alongside provincial education boards and regional universities.

Eastern Indonesia, particularly provinces like Papua, Maluku, and East Nusa Tenggara, represents both a development priority and a strategic opportunity. These regions have significantly lower internet penetration and digital infrastructure compared to Java and Sumatra, limiting access to quality education. At the same time, they host key economic zones in fisheries, renewable energy, and biodiversity conservation.

Targeting these areas aligns with Indonesia’s national education roadmap, which emphasizes reducing regional disparities and creates strong potential for scalable, high-impact pilots.

Norway’s experience in delivering remote education in Arctic and island geographies makes it an ideal partner to support digital learning solutions tailored for Eastern Indonesia.

Embedding internships through industry–university–government linkages

While internships are a growing focus within Indonesia’s higher education sector, placement quality and access to international firms remain limited. Norwegian businesses active in Indonesia — such as Equinor, DNV, or Grieg Seafood — can work with Indonesian polytechnics and universities to co-design internship programs and research fellowships.

Such collaboration ensures students develop not only technical skills but also professional networks and exposure to international standards in sectors like offshore wind, cold-chain logistics, or sustainability reporting.

Navigating market entry into Indonesia

While the opportunities for education and training collaboration in Indonesia are significant, successful entry requires a well-informed approach that balances ambition with practical realities. Norwegian institutions should adopt market strategies that align with Indonesia’s regulatory framework, respond to local demand conditions, and position themselves for long-term relevance.

Forming strategic partnerships with local institutions

The most accessible route for entry is through partnerships with Indonesian universities, polytechnics, or vocational training centers. Co-developing accredited programs requires formal agreements that comply with Indonesian regulations overseen by the Ministry of Education, Culture, Research and Technology (Kemendikbudristek) and the National Accreditation Agency for Higher Education (BAN-PT). Memoranda of Understanding (MoUs) must be supported by clear academic objectives, resource-sharing terms, and faculty exchange plans.

Establishing local learning centers or representative offices

Norwegian providers seeking a physical presence in Indonesia may consider setting up a representative office or establishing a joint training center in partnership with a local entity. While setting up a full-fledged educational institution is complex due to foreign ownership limitations in formal education, vocational and non-degree training centers are more flexible under Indonesia’s Positive Investment List.

Leveraging hybrid and online delivery models

Digital learning remains a scalable and cost-effective pathway for Norwegian providers, particularly in underserved regions. However, Indonesia requires foreign EdTech platforms to comply with data localization laws and register with the Ministry of Communication and Informatics (Kominfo). Partnering with Indonesian institutions to integrate delivery into platforms like SPADA Indonesia can streamline compliance.

Aligning with government and donor-led programs

Under the previous RPJMN 2020–2024, Indonesia prioritized human capital development. As the country transitions to RPJMN 2025–2029, vocational education, green skills, and digital transformation remain top priorities. Norwegian institutions may also engage with donor-supported programs run by ADB, the World Bank, or GIZ, which often welcome Nordic expertise in sustainable education.

Addressing the challenges ahead

While the opportunities are substantial, foreign education and training providers must be prepared to navigate several structural and operational challenges in Indonesia.

Regulatory complexity

Indonesia’s education sector is governed by multiple layers of regulation, involving the Ministry of Education, regional governments, and accreditation bodies like BAN-PT. Inconsistent enforcement and coordination across jurisdictions can result in delays or regulatory ambiguity, particularly for foreign partners unfamiliar with the system.

Ownership restrictions and licensing

Foreign ownership in formal education is limited. While institutions like Monash University Indonesia have secured licenses under a special provision of Government Regulation No. 40 of 2021, such cases remain rare and require significant government engagement. Most foreign providers must operate via partnerships, representative offices, or vocational training centers that fall under more flexible investment rules.

Affordability and pricing sensitivity

Despite the rise of a growing middle class, Indonesia remains a price-sensitive education market. High tuition fees can be a barrier to entry, particularly outside major cities. Norwegian institutions should explore flexible pricing models, scholarship arrangements, or donor co-funding to make programs accessible and competitive.

Cultural and language considerations

Indonesia’s vast linguistic and cultural diversity requires a tailored approach. English-only programs may be less accessible in secondary cities and rural provinces. Bilingual content delivery, local teaching staff, and culturally adapted materials can improve student engagement and learning outcomes.

Competition from other countries

Indonesia is already home to prominent foreign education initiatives. Monash University Indonesia, launched in 2021, operates as a fully licensed foreign university in Jakarta. Germany collaborates extensively on TVET reform via GIZ and KfW programs, while Japan partners with polytechnics and industrial training centers. Dutch institutions maintain strong water management and agriculture education footholds through NUFFIC-supported programs. To stand out, Norwegian institutions should highlight their specialized expertise in marine sciences, renewable energy training, Arctic-to-tropic digital learning models, and climate resilience — all directly aligned with Indonesia’s development priorities.

A strategic moment for collaboration

Indonesia’s education and skills ecosystem transformation aligns with Norway’s global expertise in sustainable development, digital learning, and marine innovation. By entering the market through targeted partnerships and tailored delivery models, Norwegian institutions can play a meaningful role in Indonesia’s workforce development.

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