Indonesia government: improving human capital competition

Alongside its plans to accelerate national economic recovery in the midst of COVID-19, Indonesia's government has stated that it will continue to support efforts to improve human capital competitiveness. The efforts come in response to preparing the region for the fourth industrial revolution, as well as being able to take advantage of the demographic dividend.

Speaking at a webinar held by the Covid-19 Handling and National Economic Recovery Committee (KPCPEN), Rosarita Niken Widiastuti, Ministry of Communication and Information Special Staff for Information and Public Relations, Digital Transformation and Inter-Agency Relations, discussed government’s preparation of digital tools for Indonesia's young talent.

As well as discussing Kominfo’s target to award 60,00 scholarships for digital-related subjects such as cyber security, cloud computing, big data analysis, artificial intelligence, IOT, robotics and digital business in 2021.

"Apart from digital training for micro, small and medium enterprises (MSMEs), Kominfo is holding various digital entrepreneurship training or digital talent scholarships. All of these programs' intention is to prepare the young workforce to face Industry 4.0. We provide support through the 'grebek pasar' program, in which the program helps small communities, particularly MSMEs, to sell through online channels. The government does not want the marketplace to be filled only with foreign products,” commented Rosarita Niken Widiastuti in the webinar.

Reports from the government identified that the region is currently experiencing a demographic bonus - with the share of working age population being greater than the non working population - which is predicted to last until 2045. 

"In the digital society, we must be able to find new business models. Meanwhile, the education and training sectors must be improved. Job transformation continues to move forward, and people can now work anywhere and anytime. This trend is accommodated by the Job Creation Law ('UU Cipta Kerja') through a wage system based on working hours," commented Anwar Sanusi, Secretary General of the Ministry of Manpower, who also states that the demographic dividend presents both opportunities and challenges. "In line with the demographic bonus dividend, Indonesia's human capital is also facing the fourth industrial revolution. Both must be managed optimally,” he added.

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