For the past 20-30 years, both Indonesia and Australia have placed considerable emphasis on reforming their systems of technical and vocational education and training (TVET). Indonesia has focused on expanding secondary-level TVET, whereas Australia has emphasized provision of postsecondary-level vocational education and training (VET). Two factors--the emergence of new high-technology and service industries and the aging of the population--are having a profound impact on development of Indonesia's TVET system. An examination of Australia's efforts to develop and reform its VET system revealed the following seven steps that Indonesia might consider as it reforms its TVET system in response to recent economic and social changes: (1) develop a system of continuous and lifelong learning; (2) strengthen advanced and high-level skills training; (3) develop an industry-led TVET sector that includes competency-based training; (4) institute flexible delivery of training and modularization of training courses to make it easier for adults to participate in training; (5) increase focus on training output and outcomes; (6) establish a consistent national training recognition framework; and (7) institute a strong system of public postsecondary training institutes in addition to developing high-quality training providers. (Forty-two tables/figures are included. The report contains 33 references. Appended is summary of the report "Skills toward 2000.") (MN)