<![CDATA[Indonesia’s vocational education system is undergoing a strategic transformation to meet the evolving demands of the global economy domestic labor market. This study employs Porter’s Diamond framework and the TOWS Matrix to analyze the competitiveness and strategic positioning of vocational education in Indonesia. The research identifies key internal and external factors such as factor conditions, demand-side dynamics, industry collaboration, and institutional policies that influence the system’s performance. While Indonesia benefits from a demographic dividend, increasing digitalization, and supportive government initiatives, persistent challenge remain. These include regional disparities in educational quality, limited industrial absorption capacity, and societal stigma toward vocational pathways. The dual-framework analysis reveals strategic opportunities to enhance stakeholder synergy, improve educator competencies, and align vocational curricula with market needs. Furthermore, the study emphasizes the importance of data-driven policy reform and impact-based evaluation to ensure sustainable development. By integrating theoretical insight with practical recommendations, vocational education in Indonesia can evolve into a cornerstone for national human capital development. The findings contribute to discourse on Technical and Vocational Education and Training (TVET) reform and offer a roadmap for strengthening Indonesia’s position global skill landscape.]]>
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