Talking about human development, the topic that keeps existing in higher education is skill-gap between university and industry. The challenge is getting harder with shifting conditions in the globe including the issue of industrial revolution 4.0. This challenge has an immediate effect on the existence and the development of vocational academy such as Indonesian Civil Aviation Institute. Therefore, this study explores the changes that occur in as Indonesian Civil Aviation Institute as a result of higher education policy in Indonesia. This study uses SWOT analysis to examine the strategies taken by this university to encounter the issue. According to this research, there are dynamic changes in the relation between this university, government, and industry as the outcome of dissimilar interpretation of the issue.
 
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