Skills mismatch is one of the reasons of unemployment in Indonesia. A lack of coordination and collaboration among stakeholders of skills development is a prominent one. Indeed, skills needs of enterprises are often not communicated to or well understood by VET planners and institutions; as a result, skills development programmes fail to respond to changing skills demand. Intensifying industry-VET coordination in a systematic manner is a key to align skills supply and demand and reduce skills mismatch.

National Apprenticeship is one of vocational types to bridge and reduce skills mismatch. As youth are trained and given opportunities to practice their knowledge and skills in the industries. However, majority of trade union disagree to support the industry-based apprenticeship due to the limited understanding on the program itself.