Jakarta, Aug. 5 -- Indonesia is strengthening a skills-based labor market to better align workforce competencies with rapidly evolving industry demands, Manpower Minister Yassierli said in Jakarta on Wednesday.

The policy aims to address the widening gap between workers' skills and employers' needs as businesses face growing difficulty in recruiting qualified talent.

"The labor market today is looking for skills, and I believe a skills-first approach is one of the keys to ensuring we remain competitive," Yassierli said in a statement.

He said industry requirements are evolving faster than the labor market can supply workers with relevant competencies, creating persistent recruitment challenges for companies.

According to the minister,...