working paper This discusses and encourages the acceleration of Active Labor Market Policy (Active Labor Market Policies – ALMP) in Indonesia. The Indonesian labor market is at a crucial point: the Open Unemployment Rate (TPT) is declining, but structural challenges such as the dominance of the informal sector and the skills gap (skill mismatch) remains unresolved. This situation is exacerbated by technological disruption and demographic changes, which demand a transition from reactive and partial policies to a proactive and integrated framework. Analysis shows that Indonesia's ALMP rests on three pillars—skills enhancement (Pre-Employment Card, Vocational), labor market services (Karirhub), and income support (JKP)—but its implementation remains fragmented. Fundamentally, its weaknesses lie in the weak linkage between training and industry needs, high dependence on the state budget, and the policy's reactive nature. Lessons from global practices, such as Denmark's Flexicurity model, South Korea's K-Digital Training, and Singapore's SkillsFuture, emphasize that effective ALMP must be industry-driven, sustainably funded, and integrated. To accelerate the effectiveness of ALMP, seven strategic policy steps are recommended, including: (1) Establishing Sector Skills Council industry-led to validate the curriculum; (2) Initiate a Skills Development Fund (Skill Development Fund – SDF) which is funded through a mandatory contribution scheme (training levy) from the company; and (3) Adopting an adaptive Flexicurity framework by integrating Job Loss Guarantee (JKP) with obligations reskilling.