This document discusses the challenges and realities of vocational education in Indonesia. It notes that vocational education (TVET) is expected to remain highly relevant in the future as it addresses skills demands, bridges skills gaps, promotes innovation and supports lifelong learning. However, TVET systems face challenges in preparing students for the changing needs of the job market. The labor market is becoming polarized, with growth in high-skilled and low-skilled jobs but declines in middle-skilled work. Additionally, informality remains high in many labor markets. The document outlines key reforms countries have implemented to vocational education systems and policies to help ensure TVET students develop skills aligned with industry needs.