ABSTRACT

This chapter analyses the second case within the Astra case study. It discusses why and how Indonesia’s large company builds vocational education to secure skilled labour for the industry. This program has contributed directly to the United Nation’s sustainable development goals in providing inclusive and equitable quality education and promotion of lifelong learning opportunities for all (Goal 4) and fostering global partnership for sustainable development (Goal 17). The empirical fi ndings from the case of higher vocational education (the POLMAN program) show that the corporate social responsibility (CSR) program is driven by the company’s aspiration to fulfi l its business needs in sustainable supply of skilled labour by establishing one of the best manufacturing polytechnics in the country. Through the POLMAN program, which started in 1995, the company addresses the issue of skilled labour scarcity in the country. By 2015, this program had produced 2,505 highly skilled workers (Larosa, 2016) and improved the quality of 22 vocational high schools and is becoming a centre of excellence for micro, small and medium enterprise (MSME) development in the country (Astra Bina Ilmu Foundation, 2012). This chapter starts with an overview of the scarcity of skilled labour in Indonesia, showing the need for good vocational education. The subsequent sections present an analytical chronology of the POLMAN program; followed by sections discussing the within-case analysis on the evolution of interrelations of CSR programs, social capital and sustainability of Astra. The case analysis of the POLMAN program supports the theoretical framework (presented as Figure 4.1 in Chapter 4 ) about the linkages between sustainable development, CSR, social capital and corporate sustainability.